Posted at 12 July 2022 / Categories Market Roundups
Market Roundup
•German Jul ZEW Economic Sentiment -53.8, -38.3 forecast,-28.0 previous
•EU Jul ZEW Economic Sentiment 51.1, -28.0 previous
•German Jul ZEW Current Conditions -45.8, -34.5 forecast,-27.6 previous
•Portuguese Jun CPI (YoY) 8.7%, 8.0% previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 13.1% previous
•14:00 US IBD/TIPP Economic Optimism 38.1 previous
•15:30 US 52-Week Bill Auction 3.020%
•16:00 US EIA Short-Term Energy Outlook
Looking Ahead - Economic events and other releases (GMT)
•16:30 EU German Buba Balz Speaks
•16:30 US FOMC Member Barkin Speaks
• 17:00 UK BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as euro was weighed down by the likelihood of a recession brought on by an energy crisis and an ECB rate-hiking campaign well behind that of the Fed. The euro was particularly vulnerable due to the impact of a continued rise in natural gas prices on the regional economy and the war in neighboring Ukraine, as well as the European Central Bank lagging behind its rivals in raising interest rates. The single currency had dropped to a low of $1.00005 by 1030 GMT, its weakest since December 2002. It was last at $1.0011, down 0.3% on the day. Immediate resistance can be seen at 1.0110 (5DMA), an upside break can trigger rise towards 1.0205 (38.2% fib).On the downside, immediate support is seen at 1.0000 (Psychological level), a break below could take the pair towards 0.9958 (Lower BB).
GBP/USD: Sterling fell to a fresh two-year low on Tuesday as a broad dollar rally and political uncertainty weighed on sentiment. Boris Johnson's resignation as Prime Minister last week deepened uncertainty over the UK economy, which is already under pressure from near double-digit inflation, the risk of a recession and Brexit. Britain's main opposition Labour Party will put forward a motion for a no-confidence vote in Johnson's government on Tuesday, with the vote expected to take place on Wednesday. Immediate resistance can be seen at 1.1867 (5DMA), an upside break can trigger rise towards 1.2059 (38.2%fib).On the downside, immediate support is seen at 1.1810 (23.6% fib), a break below could take the pair towards 1.1790(Lower BB).
USD/CHF: The dollar strengthen against the Swiss franc on Tuesday on the view that the U.S. Federal Reserve will hike interest rates faster and further than its peers to tackle soaring inflation. The dollar index , which measures the currency against six counterparts, rose 0.26% to 108.44. It had earlier climbed to 108.47, its highest since October 2002. Investors are also keen on U.S. consumer price data due Wednesday, with economists polled by Reuters expecting the index to print an 8.8% annual rate for June. Immediate resistance can be seen at 0.9881(38.2% fib), an upside break can trigger rise towards 0.9940(Higher BB).On the downside, immediate support is seen at 0.9759(50% fib), a break below could take the pair towards 0.9707 (9DMA).
USD/JPY: The dollar dipped against the Japanese yen Tuesday as the prospect of further tightening by central banks, renewed COVID outbreaks in China and Europe’s energy shortages spooked investors. The focus for this week will be macro data including the Consumer Price Index from the U.S. on Wednesday, and comments from Federal Reserve Officials as investors look for clues for the outcome of the Fed’s upcoming policy meeting before officials enter the pre-meet blackout period. A high inflation reading would add pressure for the Fed to step up its already aggressive pace of interest rate increases. Strong resistance can be seen at 137.45 (23.6% fib), an upside break can trigger rise towards 138.11 (Higher BB).On the downside, immediate support is seen at 136.50 (14 DMA), a break below could take the pair towards 135.01 (38.2% fib).
Equities Recap
European stocks fell for a second session on Tuesday, weighed down by concerns over an energy supply crisis, while rising COVID-19 cases in China exacerbated fears of a global recession.
At (GMT 11:51 ),UK's benchmark FTSE 100 was last trading down at 0.48% percent, Germany's Dax was down by 0.76% percent, France’s CAC was down by 0.28%percent.
Commodities Recap
Gold steadied on Tuesday after dropping to a nine-month low earlier as investors positioned for U.S. economic data.
Spot gold was little changed at $1,734.39 per ounce by 1114 GMT after hitting $1,722.36 earlier in the session, its lowest since Sept. 30. U.S. gold futures were up 0.1% at $1,732.30.
Oil prices fell sharply on Tuesday on sturdy greenback, COVID-19 restrictions hitting demand in China, one of the largest crude oil importer, and fears of a global economic slowdown.
Brent crude futures were down by $4.78, or 4.5%, at $102.32 a barrel by 1112 GMT, having earlier sunk as low as $101.48. U.S. West Texas Intermediate crude was down $4.91