Posted at 11 July 2022 / Categories Market Roundups
Market Roundup
•Italian May Retail Sales (YoY) 7.0%,8.4% previous
•Italian May Retail Sales (MoM) 1.9%, 0.3% previous
•Greek Apr Retail Sales (YoY) 12.3% previous
•Greek May Industrial Production (YoY) 3.2%,-4.5% previous
• Greek May Credit Expansion (YoY) 7.3%, 7.6% previous
Looking Ahead - Economic Data (GMT)
•13:00 French 12-Month BTF Auction 0.453% previous
•13:00 French 3-Month BTF Auction -0.378% previous
•13:00 French 6-Month BTF Auction -0.021% previous
•14:00 US CB Jun Employment Trends Index 119.77 previous
Looking Ahead - Economic events and other releases (GMT)
•14:15 UK BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday as the largest single pipeline carrying Russian gas to Germany went into annual maintenance and flow is expected to be halted for 10 days. Investors fear the war in Ukraine could prolong the shutdown, further restricting European gas supplies and pushing the eurozone economy into recession. The single currency was last down 0.8% to $1.0105 per dollar. It fell to the edge of parity at $1.0072 on Friday after the release of U.S. payrolls figure for June before bouncing higher. Immediate resistance can be seen at 1.0183 (5DMA), an upside break can trigger rise towards 1.0288 (38.2% fib).On the downside, immediate support is seen at 1.0109 (23.6% fib), a break below could take the pair towards 1.0061 (Lower BB).
GBP/USD: Sterling hovered near a two-year low on Monday as traders held their breath ahead of a leadership contest to choose Boris Johnson's successor as Britain's next prime minister. Johnson's resignation deepens uncertainty over the UK economy, which is already under pressure from near double-digit inflation, the risk of recession and Brexit. The candidate who take over from Johnson will have to make big tax and spending decisions that could reduce the risk of a recession. Against the U.S. dollar, the pound was trading at $1.1964, down 0.6% on the day and not far from a March 2020 low of just below $1.19 hit last week. Immediate resistance can be seen at 1.2047 (9DMA), an upside break can trigger rise towards 1.2171 (38.2%fib).On the downside, immediate support is seen at 1.1923 (23.6% fib), a break below could take the pair towards 1.1831(Lower BB).
USD/CHF: The dollar strengthen against the Swiss franc on Monday as global growth fears boosted appeal for greenback. investors sought the safety of the U.S. dollar at a time of high economic uncertainty as fears over a looming global recession grow. Investors' eyes will be on U.S. CPI data due Wednesday and markets would likely interpret a high reading as a sign the U.S. Federal Reserve would need to raise rates even more aggressively to combat inflation. Immediate resistance can be seen at 0.9797 (Daily high), an upside break can trigger rise towards 0.9879 (38.2% fib).On the downside, immediate support is seen at 0.9744 (50% fib), a break below could take the pair towards 0.9622 (9DMA).
USD/JPY: The dollar rose against the Japanese yen Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates. A hawkish Fed, combined with fears of recession, particularly in Europe, has kept the dollar up at 20-year highs against a basket of competitors . The dollar broke above 137.00 to reach its highest since 1998 at 137.28 yen as the Bank of Japan remained dovish. Japan's conservative coalition government was projected to have increased its majority in upper house elections on Sunday, two days after the assassination of former prime minister Shinzo Abe. Strong resistance can be seen at 137.45 (23.6% fib), an upside break can trigger rise towards 137.91 (Higher BB).On the downside, immediate support is seen at 135.92 (9 DMA), a break below could take the pair towards 135.22 (Lower BB).
Equities Recap
European shares fell on Monday, gripped by investor concerns over energy supply crunch, while fresh COVID-19 cases in China and the discovery of a new coronavirus variant dented commodity-linked stocks.
At (GMT 12:08 ),UK's benchmark FTSE 100 was last trading down at 0.25% percent, Germany's Dax was down by 0.93% percent, France’s CAC finished was down by 0.70%percent.
Commodities Recap
Gold neared a nine-month low on Monday, weakening after strong U.S. job market data last week boosted the likelihood of another super-sized interest rate hike by the Federal Reserve.
Spot gold was down 0.3% at $1,736.63 per ounce by 1108 GMT. U.S. gold futures dipped 0.5% to $1,734.00.
Oil prices fell on Monday in volatile trade, reversing most of the previous session's gains as markets braced for a demand expected from mass testing for COVID-19 in China, which outweighed ongoing concern over tight supply.
Brent crude futures fell $1.63, or 1.5%, to $105.39 by 1100 GMT after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $2.17, or 2.1%, to $102.62, paring a 2% gain from Friday.