Posted at 19 July 2022 / Categories Market Roundups
Market Roundup
•UK May Employment Change 3M/3M (MoM) 296K, 170K forecast, 177K previous
•Swiss Jun Trade Balance 3.803B, 3.116B previous
•UK May Average Earnings Index +Bonus 6.2%, 6.7% forecast, 6.8% previous
•UK Unemployment Rate 3.8%,3.9% forecast, 3.8% previous
•UK Jun Claimant Count Change -20.0K, -41.2K forecast,-19.7K previous
•EU Jun CPI (MoM) 0.8%, 0.8% forecast, 0.8% previous
•EU Jun CPI (YoY) 8.6%, 8.6% forecast, 8.1% previous
•EU Jun Core CPI (YoY) 3.7%, 3.7% forecast, 3.8% previous
•US Jun Building Permits 1.685M, 1.650M forecast, 1.695M previous
•US Jun Housing Starts (MoM) -2.0%, -14.4% previous
• US Jun Housing Starts 1.559M,1.580M forecast,1.549M previous
• US Jun Building Permits (MoM) -0.6%, -7.0% previous
•US Redbook (YoY) 14.6%,13.0% previous
Looking Ahead - Economic Data (GMT)
•20:30 US API Weekly Crude Oil Stock 0.333M forecast ,4.762M previouis
Looking Ahead - Economic events and other releases (GMT)
•16:00 UK BoE Gov Bailey Speaks
•18:35 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro rose against the U.S. dollar on Tuesday on news that the European Central Bank would discuss this week whether to raise rates faster than expected. The euro jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday. The euro, which last week fell below parity against the dollar for the first time in two decades, was trading 1% higher at $1.0256 . Immediate resistance can be seen at 1.0253 (38.2% fib), an upside break can trigger rise towards 1.0296(21DMA).On the downside, immediate support is seen at 1.0130(23.6%fib), a break below could take the pair towards 1.0070 (18th July low).
GBP/USD: The British pound rose against a broadly struggling dollar on Tuesday as latest economic data suggested the cost-of-living squeeze had not yet hit demand for staff in the UK. Data showed Britain’s unemployment rate holding at 3.8% in the three months to May while the number of people in work rose by the most since the middle of 2021.Sterling was up half a percent at $1.20120 against the dollar. Immediate resistance can be seen at 1.2056(38.2% fib), an upside break can trigger rise towards 1.2131(30DMA).On the downside, immediate support is seen at 1.1950 (50% fib), a break below could take the pair towards 1.1856 (61.8% fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as a flight to safety waned on easing bets around the U.S. Federal Reserve's aggressive rate tightening campaign. Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve’s meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise. The dollar index, which gauges the unit against six counterparts, was down 0.9% at 106.52, on course for its biggest daily loss in a month and well back from the high of 109.29 last week, a level not seen since September 2002. Immediate resistance can be seen at 0.9717(30DMA), an upside break can trigger rise towards 0.9777(38.2%fib).On the downside, immediate support is seen at 0.9656(50%fib), a break below could take the pair towards 0.9525(61.8%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as investors awaited more cues from top central banks on their monetary policy plans. Market participants are now anticipating a 75-basis-point hike by the Fed at its July 26-27 meeting. The European Central Bank and the Bank of Japan both are meeting on Thursday, with the ECB widely expected to deliver a 25-basis-point hike. Markets are expecting a large 75 basis point interest rate hike at the U.S. Federal Reserve's meeting next week, away from a flirtation with the chance of an enormous 100 basis point rise. Strong resistance can be seen at 139.29 (23.6% fib), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.27 (11DMA), a break below could take the pair towards 135.80 (38.2% fib).
Equities Recap
European stocks were mostly higher in choppy trade on Tuesday despite reports of a spending slowdown at tech giant Apple and a mixed earnings update from IBM.
At (GMT 14:46 ),UK's benchmark FTSE 100 was last trading up at 1.12% percent, Germany's Dax was up by 2.54% percent, France’s CAC was up by 1.79%percent.
Commodities Recap
Gold steadied on Tuesday as a weakening dollar made it cheaper for overseas buyers, while investors awaited more cues from top central banks on their monetary policy plans.
Spot gold was little changed at $1,709.59 per ounce by 1301 GMT, after hitting a session high of $1,718.19 earlier. U.S. gold futures fell 0.2% to $1,707.20.
Oil prices fell 2% on Tuesday after soaring by more than $5 barrel in the previous session, weighed by fears that an economic slowdown will hit oil demand, though tight supply and a weaker dollar curbed some losses.
Brent crude futures for September settlement were down $1.64, or 1.5%, at $104.63 a barrel by 1328 GMT. The contract rose 5.1% on Monday, the biggest percentage gain since April 12.
WTI crude futures for August delivery fell by $1.63, or 1.6%, to $100.97 a barrel. The contract climbed 5.1% on Monday, the largest percentage gain since May 11.