Posted at 29 July 2022 / Categories Market Roundups
Market Roundup
•U.S. GDP declined 0.9% in Q2 for second straight drop
•US Real Consumer Spending (Q2) 1.0%,1.8% previous
•US Continuing Jobless Claims 1,359K, 1,380K forecast, 1,384K previous
•US Jobless Claims 4-Week Avg 249.25K, 240.50K previous
•US Initial Jobless Claims256K, 253K forecast, 251K previous
•US GDP Price Index (QoQ) (Q2) 8.9%,7.9% forecast, 8.3% previous
•US GDP (QoQ) (Q2) -0.9%,0.5% forecast, -1.6% previous
• US PCE Prices (Q2) 7.1%, 7.1% previous
•US Core PCE Prices (Q2) 4.40%,4.50% forecast, 5.20% previous
•US GDP Sales (Q2) 1.1%,-1.2% previous
US Natural Gas Storage 15B,22B forecast, 32B previous
•US Jul KC Fed Composite Index 13, 12 previous
•US Jul KC Fed Manufacturing Index 7, -1 previous
Looking Ahead - Economic Data (GMT)
•05:00 Japan Jun Construction Orders (YoY) 19.5% previous
•05:00 Japan Jul Household Confidence 32.1 previous
•05:00 Japan Jun Housing Starts (YoY) -1.2% forecast, -4.3% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro recovered from earlier losses against dollar on Thursday as investors digested data showing a declining U.S. economy for a second straight quarter, a day after the Federal Reserve hiked interest rates. U.S. second-quarter gross domestic product (GDP) fell at a 0.9% annualized rate, according to the Commerce Department's advance estimate. This compares with economist expectations for 0.5% growth and came after a first-quarter contraction of 1.6% . The data followed a Fed commitment on Wednesday to not flinch in its battle against the most intense U.S. inflation since the 1980s. Immediate resistance can be seen at 1.0190(21DMA), an upside break can trigger rise towards 1.0230(38.2%fib).On the downside, immediate support is seen at 1.0117(23.6%fib), a break below could take the pair towards 1.0000(Psychological level).
GBP/USD: Sterling steadied against the dollar as sterling gained momentum ahead of hawkish MPC expectations on Aug 4.Market’s focus turned to the BoE’s next meeting, traders are eyeing converging Fed-BoE rate expectations as markets price a more hawkish 50bp hike from the BoE.. Sterling also benefited from a pullback in the dollar and a euro still struggling under the weight of imminent shortages of natural gas and a weakening economy. Immediate resistance can be seen at 1.2193(38.2%fib), an upside break can trigger rise towards 1.2339(50%fib).On the downside, immediate support is seen at 1.2018(23.6%fib),a break below could take the pair towards 1.1988(21DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday but stayed within reach of an earlier six-week high as investors bet that interest rate hikes by the Federal Reserve could be nearing a peak. Wall Street's major indexes rose as a contraction in the U.S. economy for the second straight quarter raised expectations of a less aggressive monetary policy by the Fed. U.S. crude oil futures settled 0.9% lower at $96.42 a barrel as concerns about a potential global recession that would knock energy demand offset lower crude inventories and a rebound in U.S. gasoline consumption. The Canadian dollar was trading 0.1% lower at 1.2834 to the greenback, after touching its strongest level since June 13 at 1.2796. Immediate resistance can be seen at 1.3335 (Hgher BB), an upside break can trigger rise towards 1.3382 (Sep 3rd high).On the downside, immediate support is seen at 1.3258 (11 DMA), a break below could take the pair towards 1.3211 (50 DMA).
USD/JPY: The dollar languished near a six-week low to the yen amid a sharp retreat in Treasury yields after investors interpreted a shrinking U.S. economy as one more reason for the Federal Reserve to ease its foot off the tightening pedal. U.S. second-quarter gross domestic product (GDP) contracted at a 0.9% annualized rate, according to the Commerce Department’s advance estimate, released Thursday. That followed a first-quarter contraction of 1.6%. The GDP data came a day after the Fed raised rates by an as-expected 75 basis points and committed to not flinch in its battle against the most intense U.S. inflation since the 1980sStrong resistance can be seen at 136.84 (21DMA), an upside break can trigger rise towards 137.71(23.6%fib).On the downside, immediate support is seen at 135.65 (38.2%fib), a break below could take the pair towards 134.14 (Lower BB).
Equities Recap
European stocks closed higher on Thursday with some key indexes in the region hitting multi-week closing highs, as investors indulged in some strong buying at several counters after the Federal Reserve Chairman Jerome Powell hinted at a slowdown in the pace of rate hikes at future meetings.
The UK's benchmark FTSE 100 closed down by 0.04%percent, Germany's Dax ended up by 0.88%percent, and France’s CAC finished the down by 1.30% percent.
Wall Street stocks rallied on Thursday as investors digested data showing a declining U.S. economy for a second straight quarter, a day after the Federal Reserve hiked interest rates.
Dow Jones was up by 1.03%percent, S&P 500 was up 1.21% percent, Nasdaq was up by 1.08% percent.
Treasuries Recap
Benchmark 10-year notes last rose 15/32 in price to yield 2.6777%, from 2.732% late on Wednesday. The 30-year bond last rose 8/32 in price to yield 2.9903%, from 3.002%.
The 2-year note last rose 6/32 in price to yield 2.8824%, from 2.972%.
Commodities Recap
Gold rose more than 1% on Thursday as a contraction in the U.S. economy boosted its safe-haven allure and helped to extend gains driven by a less aggressive tone from the Federal Reserve chairman.
Spot gold extended gains on the data, and was last up 1.1% at $1,752.39 per ounce by 1:59 p.m. EDT (1759 GMT), helped along by a subsequent slide in U.S. Treasury yields.U.S. gold futures settled 1.8% higher at $1,750.30.
Oil prices were mixed on Thursday as concerns about a potential global recession that would knock energy demand offset lower U.S. crude inventories and a rebound in gasoline consumption.
Brent crude futures rose 52 cents to settle at $107.14 a barrel, after gaining $2.22 on Wednesday.
U.S. West Texas Intermediate crude (WTI) fell 84 cents to settle at $96.42 a barrel, after rising $2.28 in the previous session.