News

Europe Roundup: Euro falls as gloomy PMIs cloud prospects for future ECB hikes, European shares edge higher, Gold little changed, Oil prices fall as Libya resumes output, global demand outlook darkens-July 22nd,2022

Posted at 22 July 2022 / Categories Market Roundups


Market Roundup

•UK Jun Retail Sales (YoY)  -5.8%, -5.3%forecast, -4.7% previous

•UKJ Jun Core Retail Sales (YoY)  -5.9%,-6.3% forecast, -5.7% previous

•UK Jun Core Retail Sales (MoM) 0.4%, -0.4% forecast, -0.7% previous

•UK Jun  Retail Sales (MoM)  -0.1%,-0.3% forecast, -0.5% previous

•French Jul Manufacturing PMI  49.6, 50.8 forecast, 51.4 previous

• French Jul Services PMI  52.1,52.7 forecast, 53.9 previous

•French Jul S&P Global Composite PMI 50.6 , 51.8 forecast, 52.5 previous

• German Jul Manufacturing PMI  49.2, 50.6 forecast, 52.0 previous

• German Jul Services PMI 49.2, 51.2 forecast, 2.4 previous

•EU Jul Manufacturing PMI  49.6, 51.0 forecast, 52.1 previous

•EU Jul Services PMI  50.6, 52.0 forecast, 53.0 previous

•EU Jul S&P Global Composite PMI  49.4, 51.0 forecast,  52.0 previous

•German Manufacturing PMI 52.2, 52.0  forecast, 52.8 previous

•German Services PMI 53.3, 53.0 forecast, 54.3 previous

•German Composite PMI 52.8, 52.5 forecast, 53.7 previous

Looking Ahead - Economic Data (GMT)

•12:30 Canada  May Core Retail Sales (MoM)  1.6% forecast, 1.3% previous

•12:30 Canada  May Retail Sales (MoM)  1.6% forecast, 0.9% previous

•13:45 US Jul Manufacturing PMI  52.0   forecast, 52.7 previous

•13:45 US Jul Services PMI 52.6 forecast, 52.7 previous

•13:45 US Jul   S&P Global Composite PMI 52.3 previous

•17:00   U.S. Baker Hughes Oil Rig Count 599 previous

•17:00   U.S. Baker Hughes Total Rig Count 756 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined on Friday as disappointing activity data from France and Germany pushed the single currency lower, a day after the European Central Bank highlighted the path for interest rates would be data dependent. German business activity unexpectedly shrank in July while French manufacturing activity contracted and growth in services slowed, preliminary purchasing managers' (PMI) surveys showed. The euro was already softer, even after the ECB raised rates by a more-than-forecast 50 basis points (bps) on Thursday, as its new tool to shield highly indebted states from soaring borrowing costs failed to impress investors. Immediate resistance can be seen at 1.0256(38.2%fib), an upside break can trigger rise towards 1.0328(30DMA).On the downside, immediate support is seen at 1.0132(14DMA), a break below could take the pair towards 1.0081(23.6%fib).

GBP/USD: he pound fell against the dollar on Friday as fresh data fuelled worries about a slowdown in a UK economy that is grappling with inflation at a four-decade high.Britain's businesses grew at their slowest pace in 17 months in July and inflation pressures eased, according to an industry survey on Friday that might ease pressure on the Bank of England to deliver a big interest rate hike next month. UK retail sales volumes meanwhile fell by 0.1% from May, official data showed, although this was better than the 0.3% monthly fall expected.Immediate resistance can be seen at 1.1998(38.2%fib), an upside break can trigger rise towards 1.2071(38.2%fib).On the downside, immediate support is seen at 1.1917(9DMA), a break below could take the pair towards 1.1772(23.6%fib).

USD/CHF: The dollar declined against the Swiss franc on  Friday  as disappointing U.S. data has dampened expectations of a large 100 basis point (bps) hike from the Federal Reserve next week. The number of Americans enrolling for unemployment benefits rose for a third straight week last week, while factory activity slumped this month, the newest indications the U.S. economy is slowing under the weight of rising interest rates and high inflation. Traders now put 83.7% odds on the Federal Open Market Committee raising rates by 75 bps on July 27, with a 16.3% probability of a full-point hike. Immediate resistance can be seen at 0.9713(23.6%fib), an upside break can trigger rise towards 0.9741(14DMA).On the downside, immediate support is seen at 0.9642(38.2%fib), a break below could take the pair towards 0.9578(50%fib).

USD/JPY: The dollar dipped against the Japanese yen as disappointing U.S. data has dampened expectations of a large interest hike from the Federal Reserve next week. The number of Americans enrolling for unemployment benefits rose for a third straight week last week to the highest in eight months and a closely watched gauge of factory activity slumped this month, the newest indications the U.S. economy is slowing under the weight of rising interest rates and high inflation. Initial claims for state unemployment benefits rose 7,000 to a seasonally adjusted 251,000, the highest since last November, from an unrevised 244,000 a week .Strong resistance can be seen at 138.08(Daily high), an upside break can trigger rise towards 139.46(23.6%fib).On the downside, immediate support is seen at 136.68 (38.2%fib), a break below could take the pair towards 136.26 (30DMA).

Equities Recap

European stocks were seeing modest gains on Friday despite Snap Inc posting disappointing second-quarter results and the latest PMI survey data suggesting slowing growth in the Eurozone.

At (GMT 11:17 ),UK's benchmark FTSE 100 was last trading up at 0.24% percent, Germany's Dax was up by 0.44% percent, France’s CAC was up by 0.35%percent.

Commodities Recap

Gold prices held to a tight range on Friday as investors avoided big bets ahead of next week’s Federal Reserve policy meeting, with a stronger dollar also keeping prices in check.

Spot gold was little changed at $1,717.79 per ounce by 0901 GMT. Prices on Thursday fell to their lowest level in more than a year at $1,680.25 before ending 1.3% higher.

Oil prices fell on Friday on a weakening global demand outlook and the resumption of some Libyan crude oil output.

Brent crude futures fell $1.02 to $102.84 a barrel by 1023 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down $1.08 cents to $95.27 a barrel.


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