Posted at 23 July 2022 / Categories Market Roundups
Market Roundup
•Canada May Core Retail Sales (MoM) 1.9% ,1.6% forecast, 1.3% previous
•Canada May Retail Sales (MoM) 2.2% ,1.6% forecast, 0.9% previous
•US Jul Manufacturing PMI 52.3, 52.0 forecast, 52.7 previous
•US Jul Services PMI 47.0 ,52.6forecast, 52.7 previous
•US Jul S&P Global Composite PMI 47.5 ,52.3 previous
•U.S. Baker Hughes Oil Rig Count 599 ,599 previous
• U.S. Baker Hughes Total Rig Count 758 ,756 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro recovered from earlier losses on Friday as dollar dipped after soft data on U.S. business activity. U.S. business activity contracted for the first time in nearly two years in July as a sharp slowdown in the service sector outweighed continued modest growth in manufacturing, painting a glum picture for an economy stunted by high inflation, rising interest rates and deteriorating consumer confidence. S&P Global on Friday said its preliminary U.S. Composite PMI Output Index had tumbled far more than expected to 47.5 this month from a final reading of 52.3 in June, the first contraction in almost two years. 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 1.0129(14DMA), a break below could take the pair towards 1.0081(23.6%fib).
GBP/USD: The pound posted its biggest weakly gain versus the dollar since May 20 this week and rose on Friday versus the dollar as the impact of weak UK economic data on the British currency was tempered by worse numbers coming out of the U.S. and Europe. Fresh data showed 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 . Data out of the U.S. on Friday afternoon showed business activity contracting for the first time in nearly two years in July. Immediate resistance can be seen at 1.2032(21DMA), an upside break can trigger rise towards 1.2122(38.2%fib).On the downside, immediate support is seen at 1.1894(23.6%fib), a break below could take the pair towards 1.1762(July 14th low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investors digested retail sales data for May, while a drop in oil prices weighed on loonie. Canadian retail sales rose 2.2% in May from April to C$62.25 billion ($48.26 billion), on higher sales at gasoline stations, as well as motor vehicle and parts dealers, Statistics Canada said.Crude prices were lower due to signs of softening U.S. demand, while copper looked set for first weekly rise in seven as investors returned to riskier assets following a brutal sell-off .The loonie was trading 0.4% lower at C$1.2912 to the greenback, after trading in a range of 1.2824 to 1.2924. Immediate resistance can be seen at 1.2930 (38.2%fib), an upside break can trigger rise towards 1.2990(19th July high).On the downside, immediate support is seen at 1.2798 (50%fib), a break below could take the pair towards 1.2794 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen Friday after data showed U.S. business activity shrank for the first time in nearly two years in July as a services slowdown outweighed manufacturing growth. S&P Global on Friday said its preliminary or flash U.S. Composite PMI output Index had tumbled far more than expected to 47.5 this month from a final reading of 52.3 in June. The dollar lost ground on the heels of the business activity data, as investors weighed slowing economic activity against easing inflation. The Japanese yen strengthened 0.98% versus the greenback at 136.05 per dollar .Strong resistance can be seen at 137.65(23.6%fib), an upside break can trigger rise towards 139.04(Higher BB).On the downside, immediate support is seen at 135.45 (38.2%fib), a break below could take the pair towards 134.54 (Lower BB).
Equities Recap
European stocks closed slightly higher on Friday after swinging between gains and losses for much of the day's session, as investors digested the latest batch of economic data from the region, and continuing to react to the ECB's interest rate decision.
UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended up by 0.05 percent, France’s CAC finished the day up by 0.25 percent.
U.S. stocks ended lower on Friday as disappointing earnings from Snap spooked investors and shares in social media and ad tech firms dropped, offsetting gains from card issuer American Express following an upbeat forecast.
Dow Jones closed down by 0.43 %percent, S&P 500 closed down by 0.93 % percent, Nasdaq settled down by 1.87 % percent.
Treasuries Recap
After recovering from early weakness to end the previous session sharply higher, treasuries showed another strong move to the upside during trading on Friday.
The yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 12.7 basis points to 2.783 percent.
Commodities Recap
Gold headed for its first weekly gain in six on Friday as a pullback in U.S. Treasury yields and the dollar’s decline bolstered non-yielding bullion’s safe-haven appeal as economic risks persisted.
Spot gold rose 0.2% to $1,721.29 per ounce by 2:21 p.m. EDT (1821 GMT). It was up about 1% so far this week, following a strong rebound from a more than one-year low of $1,680.25 on Thursday.
U.S. crude prices settled below $95 a barrel for the first time since April in choppy trading on Friday after the European Union said it would allow Russian state-owned companies to ship oil to third countries under an adjustment of sanctions agreed by member states this week.
U.S. West Texas Intermediate crude (WTI) settled $1.65, or 1.7%, lower at $94.70 a barrel, while Brent crude futures fell 66 cents, or 0.6%, to $103.20.