Posted at 20 July 2022 / Categories Market Roundups
Market Roundup
• UK Jun Core CPI (YoY) 5.8%,5.8% forecast, 5.9% previous
• UK Jun Core CPI MoM (MoM) 0.4%,0.5% forecast, 0.5% previous
• German Jun PPI (MoM) 0.6%, 1.3% forecast,1.6% previous
•UK Jun CPI (MoM) 0.8%, 0.7% forecast, 0.7% previous
•UK Jun PPI Output (MoM) 1.4%,1.1% forecast,1.6% previous
•UK Jun PPI Output (YoY) 16.5%,16.0% forecast,15.7% previous
•UK Jun PPI Input (MoM) 1.8%, 1.4% forecast,2.1% previous
•UK Jun CPI (YoY) 9.4%, 9.3% forecast, 9.1% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Common CPI (YoY) 4.2% forecast,2.6% previous
•12:30 Canada Trimmed CPI (YoY) 5.6% forecast, 5.4% previous
•12:30 Canada Median CPI (YoY) 5.1% forecast,4.9% previous
•12:30 Canada Jun CPI (YoY) 8.4% forecast, 7.7% previous
•12:30 Canada Jun CPI (MoM) 0.9% forecast, 1.4% previous
•12:30 Canada Jun Core CPI (MoM) 0.8% previous
•12:30 Canada Jun RMPI (MoM) 2.5% previous
•12:30 Canada Jun Core CPI (YoY) 5.9% forecast,6.1% previous
•14:00 US Jun Existing Home Sales 5.38M forecast, 5.41M previous
•14:00 US Jun Existing Home Sales (MoM) -3.4% previous
•14:30 EU Jul Consumer Confidence -24.9 forecast, -23.6 previous
•14:30 US Cushing Crude Oil Inventories 0.316M previous
•14:30 US Distillate Fuel Production -0.246M previous
•14:30 US Crude Oil Inventories 1.357M forecast, 3.254M previous
•14:30 US Heating Oil Stockpiles -0.619M previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro held near two-week highs against the dollar on Wednesday amid expectations of a larger-than-previous-expected ECB rate hike this week. The European Central Bank (ECB) meeting is due on Thursday, leaving markets on tenterhooks. The euro benefited from news the ECB was considering a 50-basis-point interest rate hike, having earlier flagged 25 bps. The euro firmed as much as 0.5% to $1.02730, the highest since early June, before easing off those levels. Immediate resistance can be seen at 1.0281(21DMA), an upside break can trigger rise towards 1.0310(38.2% fib).On the downside, immediate support is seen at 1.0179 (14DMA), a break below could take the pair towards 1.0110 (23.6%fib).
GBP/USD: Sterling steadied against the dollar on Wednesday as data showed that UK inflation rose to a 40-year high but was only slightly above forecast. Inflation data supported bets that the Bank of England will opt for a 50 basis point rate hike next month, but sterling's moves were limited as the magnitude of the hike was priced in. Sterling was flat at $1.2000 against the U.S. dollar , after climbing to an 11-day high on Tuesday. Immediate resistance can be seen at 1.2051(14DMA), an upside break can trigger rise towards 1.2098(38.2%fib).On the downside, immediate support is seen at 1.1950(14DMA), a break below could take the pair towards 1.1856 (23.6%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday but gains were limited as on reduced chances of a 100-basis-point rate hike by the Federal Reserve next week. Markets still expect a large 75-basis-point interest rate rise from the U.S. Federal Reserve next week to rein in white-hot inflation. But this represents a rowback from previous expectations of 100 bps. Focus also remains on the European Central Bank’s meeting later this week where it is expected to raise rates by 25 bps. Immediate resistance can be seen at 0.9718(38.2%fib), an upside break can trigger rise towards 0.9782(50%fib).On the downside, immediate support is seen at 0.9670(21DMA), a break below could take the pair towards 0.9648(23.6%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Wednesday as dollar weakened on toned down chances of a 100-basis-point rate hike by the Federal Reserve next week. Easing expectations that the U.S. Federal Reserve would resort to a 100-basis-point hike at its meeting next week put the dollar on track for its third straight session of declines after touching a two-decade high last week. U.S. economic data showed the effect of the Fed's hiking policy, as new U.S. home-building activity fell to a nine-month low in June and permits for new construction projects slipped in a rising mortgage rate environment. Strong resistance can be seen at 13929 (23.6%fib), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.56 (9DMA), a break below could take the pair towards 136.91 (38.2%fib).
Equities Recap
European stocks dipped on Wednesday as worries about gas supplies kept investors worried .
At (GMT 11:13 ),UK's benchmark FTSE 100 was last trading down at 0.13% percent, Germany's Dax was down by 0.35% percent, France’s CAC was down by 0.26%percent.
Commodities Recap
Gold steadied into a tight trading range on Wednesday, buoyed by a weaker dollar, as the market toned down chances of a 100-basis-point rate hike by the Federal Reserve next week.
Spot gold was little changed at $1,711.99 per ounce by 0935 GMT. U.S. gold futures fell 0.2% to $1,707.30.
Oil prices fell more than $1 a barrel on Wednesday, under pressure from global central bank efforts to limit inflation and ahead of expected builds in U.S. crude inventories as fuel demand weakens.
Brent crude prices for September fell $1.06, or 0.9%, to $106.29 a barrel by 0946 GMT, while U.S. West Texas Intermediate (WTI) crude for August slipped $1.09, or 1%, to $103.13 per barrel. The WTI contract will expire on Wednesday.