Posted at 27 July 2022 / Categories Market Roundups
Market Roundup
•German Aug GfK German Consumer Climate -30.6, -28.9 forecast, -27.4 previous
•Sweden Jun Trade Balance 3.10B, -1.90B previous
•French Jul Consumer Confidence 80, 80 forecast, 82 previous
•Italian Jul Business Confidence 106.7, 108.0 forecast, 110.0 previous
•EU Private Sector Loans (YoY) 4.6%, 4.6% previous
• Italian Consumer Confidence 94.8 , 96.6 forecast, 98.3 previous
•EU Jun M3 Money Supply (YoY) 5.7%, 5.4% forecast, 5.6% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Wholesale Inventories (MoM) 1.8% previous
•12:30 US Jun Durable Goods Orders (MoM) -0.5% forecast, 0.8% previous
•12:30 US Jun Goods Trade Balance -104.04B previous
•12:30 US Jun Goods Orders Non Defense Ex Air (MoM) 0.2% forecast, 0.6% previous
•12:30 US Jun Core Durable Goods Orders (MoM) 0.2% forecast, 0.7% previous
•12:30 US Jun Retail Inventories Ex Auto 0.8% previous
•12:30 US Jun Durables Excluding Defense (MoM) -0.5% forecast, 0.7% previous
•14:00 US Jun Pending Home Sales (MoM) -1.5% forecast, 0.7% previous
•14:30 US Cushing Crude Oil Inventories 1.143M previous
•14:30 US Crude Oil Inventories -1.037M forecast,-0.446M previous
•18:00 US Fed Interest Rate Decision 2.50% forecast,- 1.75% previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US FOMC Statement
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro edged higher on Wednesday but failed to recoup much of Tuesday's slide, its biggest fall in over two weeks, as fears of a European recession escalated after Russia further cut gas supplies to Europe through the Nord Stream 1 pipeline. The Kremlin says the gas disruption is the result of maintenance issues and Western sanctions, while the European Union has accused Russia of resorting to energy blackmail. At 1036 GMT, the euro was up 0.4% at $1.0163 . Immediate resistance can be seen at 1.0256(July 26th high), an upside break can trigger rise towards 1.0300(38.2%fib).On the downside, immediate support is seen at 1.0139(14DMA), a break below could take the pair towards 1.0081(23.6%fib).
GBP/USD: The British pound edged higher on Wednesday thanks to a broadly consolidating dollar but gains were capped by a fresh slate of weak data highlighting the problems facing the economy.British employers are feeling the most pessimistic about hiring and investment since the depths of the coronavirus pandemic crisis in 2020, while shops and supermarkets in Britain increased prices by 4.4% in the 12 months to July, the largest rise in more than a decade. A raft of weak economic data has put pressure on the Bank of England to soften its monetary policy tightening path. While economists in a poll expect the central bank to raise interest rates by 25 bps next week, some analysts expect a bigger 50 bps hike. Immediate resistance can be seen at 1.2137(38.2%fib), an upside break can trigger rise towards 1.2161(38.2%fib).On the downside, immediate support is seen at 1.998(23.6%fib),a break below could take the pair towards 1.1961(14DMA).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as investors awaited U.S. Federal Reserve policy meeting, at which the central bank is expected to raise rates by another 75 basis points to tame soaring inflation. Money markets are betting that the Fed will raise rates by 75 basis points (bps), with an outside chance of a larger 100 bps hike. Traders expect the Fed to take the rate to as high as 3.4% by year-end to help bring inflation back to target. Against the safe-haven Swiss franc, the dollar was down 0.2% at $0.9612.Immediate resistance can be seen at 0.9677(50%fib), an upside break can trigger rise towards 0.9724(14DMA).On the downside, immediate support is seen at 0.9580(38.2%fib), a break below could take the pair towards 0.9537 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday ahead of the U.S. Federal Reserve meeting's outcome later in the day. The U.S. central bank is expected to raise interest rates later on Wednesday.A 75 basis point (bps) hike by the U.S. Federal Reserve is priced in, with a 13% chance of a super-sized 100 bps raise. The focus will also be on a news conference at 1830 GMT for hints on whether Fed policymakers' resolve to hike further is waning as growth slows. The greenback dipped as far as 136.69 yen, after hitting daily high at 137.13.Strong resistance can be seen at 137.10 (38.2%fib), an upside break can trigger rise towards 137.65(11DMA).On the downside, immediate support is seen at 135.35 (38.2%fib), a break below could take the pair towards 134.73 (Lower BB).
Equities Recap
European stocks were seeing modest gains on Wednesday ahead of the Federal Reserve's interest-rate decision later in the day.
At (GMT 11:17 ),UK's benchmark FTSE 100 was last trading up at 0.62% percent, Germany's Dax was up by 0.34% percent, France’s CAC was up by 0.25 %percent.
Commodities Recap
Gold prices rose on Wednesday, buoyed by a softer U.S. dollar, though prices were range-bound as investors were cautious ahead of the U.S. Federal Reserve’s policy decision later in the day.
Spot gold was up 0.4% to $1,723.28 per ounce at 0845 GMT. U.S. gold futures rose 0.3% to $1,722.10.
Oil rose by $1 a barrel on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a looming U.S. interest rate hike.
Brent crude rose $1.04, or 1%, to $105.44 a barrel at 1145 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.16, or 1.2%, to $96.14.