Posted at 26 July 2022 / Categories Market Roundups
Market Roundup
•Sweden Jun PPI (MoM) 2.5%, 1.8% previous
•Sweden Jun PPI (YoY) 25.6%, 24.4% previous
•UK Jul CBI Distributive Trades Survey-4, -5 previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Jun Wholesale Sales (MoM) 2.0% forecast, 1.6% previous
• 12:55 US Redbook (YoY) 14.6% previous
• 13:00 US May S&P/CS HPI Composite - 20 n.s.a. (MoM) 2.3% previous
•13:00 US May S&P/CS HPI Composite - 20 s.a. (MoM) 1.5% forecast, 1.8% previous
•13:00 US May 13:00 US House Price Index 392.9 previous
•13:00 US May S&P/CS HPI Composite - 20 n.s.a. (YoY) 20.6% forecast, 21.2% previous
• 13:00 US House May Price Index (YoY) 18.8% previous
•14:00 US Jun New Home Sales (MoM) 10.7% previous
•14:00 US Jul Richmond Manufacturing Shipments -15 previous
•14:00 US Jul Richmond Manufacturing Index -17 forecast, -11 previous
•14:00 US Jul CB Consumer Confidence 97.2 forecast, 98.7 previous
•14:00 US Jun New Home Sales 660K forecast, 696K previous
•14:30 US Jul Texas Services Sector Outlook -12.4 previous
•14:30 US Jul Dallas Fed Services Revenues 9.4 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined on Tuesday as prospect of another Russian gas supply cut knocked the euro lower. European Union countries were preparing to approve an emergency proposal to curb gas demand, the prospect of which sent the single currency and German bond yields lower and hit German shares. Russia said on Monday it would cut gas flows to Germany via the Nord Stream 1 pipeline to 33 million cubic metres per day (bpd) from Wednesday. That is half of current flow, which is already only 40% of normal capacity. Immediate resistance can be seen at 1.0192(5DMA), an upside break can trigger rise towards 1.0259(38.2%fib).On the downside, immediate support is seen at 1.0132(23.6%fib), a break below could take the pair towards 1.0073(18th July low).
GBP/USD: The pound declined against the dollar on Tuesday as assessed the prospect of a 50 bps rate hike by the Bank of England against the backdrop of a worsening economic outlook.The BoE will likely shy away from a bigger interest rate rise in August and stick with the more modest 25 basis point increases it has been delivering, but it is a close call, a Reuters poll of economists found. The BoE is grappling with four-decade-high inflation, driven in large part by global pressures related to supply-chain disruptions and high energy prices. That has become a cost of living crisis, now pushing up the chances of recession. Immediate resistance can be seen at 1.2062(38.2%fib), an upside break can trigger rise towards 1.2182(38.2%fib).On the downside, immediate support is seen at 1.1962(38.2%fib), a break below could take the pair towards 1.1814(23.6%fib).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday as traders waited on a rate hike from the U.S. Federal Reserve and for any clues about whether hints of a slowing economy will prompt a shift away from its focus on inflation. The Fed concludes a two-day meeting on Wednesday. Traders have been dialling back expectations as markets try and figure out if or when policymakers might pause their inflation-fighting efforts because there is signs the economy is starting to slow. Futures pricing points to a 75 basis point (bp) rate hike with a 10% risk of 100 bps. Immediate resistance can be seen at 0.9660(5DMA), an upside break can trigger rise towards 0.9686(38.2%fib).On the downside, immediate support is seen at 0.9592(23.6%fib), a break below could take the pair towards 0.9518 (Lower BB).
USD/JPY: The dollar steadied against the Japanese yen on Tuesday as investors braced for a Federal Reserve interest rate hike. 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 137.03 (5DMA), an upside break can trigger rise towards 138.28(23.6%fib).On the downside, immediate support is seen at 135.05 (38.2%fib), a break below could take the pair towards 134.80 (Lower BB).
Equities Recap
European stocks were trading mixed on Tuesday as commodity-linked stocks gained ground, offsetting worries about an impending recession.
At (GMT 11:35 ),UK's benchmark FTSE 100 was last trading up at 0.51% percent, Germany's Dax was down by 0.72 % percent, France’s CAC was down by 0.30 %percent.
Commodities Recap
Gold prices held steady on Tuesday as bond yields fell a day before the U.S. Federal Reserve’s widely expected 75-basis-point rate hike.
Spot gold was little changed at $1,719.77 per ounce by 1001 GMT. U.S. gold futures fell 0.1% to $1,718.00.
Oil prices rose on Tuesday for a second day on increasing concerns about tightening European supply after Russia, a key energy supplier to the region, cut gas supply through a major pipeline.
Brent crude futures rose $1.14, or 1.1%, to $106.29 a barrel by 1029 GMT, extending a 1.9% gain the previous day.
U.S. West Texas Intermediate (WTI) crude futures increased $1.31, or 1.4%, to $98.01 a barrel, having gained 2.1% on Monday.