Posted at 25 July 2022 / Categories Market Roundups
Market Roundup
•German Jul Business Expectations 80.3,83.0 forecast, 85.8 previous
• German Jul Current Assessment 97.7, 98.0 forecast,99.3 previous
•German Jul Ifo Business Climate Index 88.6, 90.2 forecast, 92.3 previous
•UK Jul CBI Industrial Trends Orders 8, 13 forecast, 18 previous
Looking Ahead - Economic Data (GMT)
•12:30 US Jun Chicago Fed National Activity 0.01 previous
•13:00 French 3-Month BTF Auction -0.272% previous
•13:00 French 6-Month BTF Auction 0.076% previous
•13:00 French 12-Month BTF Auction 0.545% previous
•13:00 Jul Belgium NBB Business Climate -1.5 forecast,-1.8 previous
•14:30 US Jul Dallas Fed Mfg Business Index -17.7 previous
•15:30 US 3-Month Bill Auction 2.470% previous
• 15:30 US 6-Month Bill Auction 2.910% previous
•17:00 US 2-Year Note Auction 2.060% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Monday as risk appetite returned to currency markets and investors weighed up the possible impact of an expected U.S. rate hike this week. The U.S. Federal Reserve has signalled a 75 basis-point rate hike at its July 26-27 meeting, although data last week showing inflation hit 9.1% year-on-year in June raised the possibility of a larger 100 bps hike later this year. At 1036 GMT, the U.S. dollar was down 0.2% at 106.49 , while the euro was up 0.1% at $1.02195 . 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: The pound strengthened against the dollar on Monday as riskier currencies like pound gained before a widely expected U.S. interest rate hike this week. Investors widely expect the Fed to raise interest rates by another 75 bps when it concludes a two-day policy meeting on Wednesday. Britain's businesses grew at their slowest pace in 17 months in July and inflation pressures eased, according to an industry survey last week. Although consumer spending and businesses are struggling, the Bank of England is widely expected to raise interest rates by 50 bps at a policy meeting on Aug. 4. The pound versus the U.S. dollar held around $1.2058 after hitting highest level in nearly three weeks at 1.2078. Immediate resistance can be seen at 1.2077(38.2%fib), an upside break can trigger rise towards 1.2180(38.2%fib).On the downside, immediate support is seen at 1.2000(5DMA), a break below could take the pair towards 1.1951(23.6%fib).
USD/CHF: The dollar steadied against the Swiss franc on Monday as investors prepare for a sharp U.S. interest rate rise this week amid signs of a weakening global economy. The U.S. Federal Reserve concludes a two-day meeting on Wednesday and markets are priced for a 75-basis-point rate increase. 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 0.9681(38.2%fib), an upside break can trigger rise towards 0.9726(10DMA).On the downside, immediate support is seen at 0.9596(50%fib), a break below could take the pair towards 0.9499 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday ahead of the U.S. Federal Reserve meeting's outcome later this week. Investors widely expect the U.S. Federal Reserve to raise interest rates by another 75 basis points when it concludes a two-day policy meeting on Wednesday. The Fed is expected to opt for another 75-basis-point hike rather than a larger move to quell stubbornly-high inflation as the likelihood of a recession over the next year rises to 40%.Strong resistance can be seen at 137.40 (5DMA), an upside break can trigger rise towards 139.89(23.6%fib).On the downside, immediate support is seen at 135.65 (38.2%fib), a break below could take the pair towards 134.65 (Lower BB).
Equities Recap
European shares reversed early losses to rise on Monday, as investors hoped a batch of corporate earnings this week would boost sentiment and offset more signs of an economic slowdown before the Federal Reserve's two-day policy meeting..
At (GMT 11:17 ),UK's benchmark FTSE 100 was last trading up at 0.24% percent, Germany's Dax was up by 0.38% percent, France’s CAC was up by 0.57 %percent.
Commodities Recap
Gold prices held steady on Monday as the dollar slipped, with the Federal Reserve likely to raise benchmark interest rate by an expected 75 basis points in its meet later this week.
Spot gold rose 0.2% to $1,729.03 per ounce by 0911 GMT. U.S. gold futures eased 0.1% to $1,726.40.
Oil prices rose on Monday in seesaw trading as the market balanced supply fears with expectations that rise in U.S. interest rates would weaken fuel demand.
Brent crude futures for September settlement rose 79 cents, or 0.77%, to $103.99 a barrel by 1050 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 82 cents, or 0.87%, to $95.52 a barrel.