Posted at 03 August 2022 / Categories Market Roundups
Market Roundup
•German Jun Exports (MoM) 4.5%, 1.0% forecast,-0.5% previous
•German Jun Trade Balance 6.4B, 0.2B forecast, -1.0B previous
•German Jun Imports (MoM) 0.2%, 1.3% forecast, 2.7% previous
•Swiss Jul CPI (MoM) 0.0%,-0.1% forecast, 0.5% previous
• Italian Jul Services PMI 48.4 ,50.1 forecast, 51.6 previous
•French Jul S&P Global Composite PMI 51.7 ,50.6 forecast, 50.6 previous
•French Jul Services PMI 53.2 ,52.1 forecast,52.1 previous
• German Jul Services PMI 49.7 ,49.2 forecast,49.2 previous
•EU Jul Services PMI 51.2 ,50.6 forecast,50.6 previous
• EU Jul S&P Global Composite PMI 49.9,49.4 forecast, 49.4 previous
•UK Jul Composite PMI 52.1 ,52.8 forecast,52.8 previous
•UK Jul Services PMI 52.6, 53.3 forecast,53.3 previous
• EU Jul Retail Sales (MoM) -1.2% ,0.1% forecast,0.2% previous
Looking Ahead - Economic Data (GMT)
•13:45 US Jul S&P Global Composite PMI 47.5 forecast, 47.5 previous
•13:45 US Jul Services PMI 52.7 forecast, 47.0 previous
•14:00 US ISM Non-Manufacturing PMI 53.5 forecast, 55.3 previous
•14:00 US Jun Factory Orders (MoM) 1.1% forecast, 1.6% previous
•14:00 US Jul ISM Non-Manufacturing Employment 47.4 previous
•14:30 US Cushing Crude Oil Inventories 0.751M previous
• 14:30 US Crude Oil Inventories -0.629M forecast, -4.523M previous
• 14:30 US Crude Oil Imports -1.144M previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as loomy Eurozone business activity data added to fears of an economic slowdown . Data on Wednesday showed business activity in the euro zone contracted slightly in July for the first time since early last year as consumers reined in spending amid a cost-of-living crisis. Adding to concerns, a survey showed Germany's services sector saw its six-month expansion come to an end in July as higher prices and growing concerns over gas supplies put the brakes on a post-lockdown rebound. Immediate resistance can be seen at 1.0188(14DMA), an upside break can trigger rise towards 1.0288(38.2%fib).On the downside, immediate support is seen at 1.0188(21DMA), a break below could take the pair towards 1.0095(23.6%fib).
GBP/USD: The British pound nudged higher on Wednesday against a broadly weaker dollar, as investor focus remained on the Bank of England policy meeting on Thursday, at which the central bank is expected to raise rates for the sixth consecutive time. Money markets are currently pricing in a greater than 90% chance of an outsized 50 basis point rate hike at Thursday’s meeting, according to Refinitiv data, as the central bank attempts to cool inflation from a four-decade high of 9.4%.More than 70% of 65 analysts and economists surveyed by Reuters also expect a half-point increase from the bank’s Monetary Policy Committee this week, a poll conducted between July 27 and Aug. 1 found.Immediate resistance can be seen at 1.2196(50%fib), an upside break can trigger rise towards 1.2351(50%fib).On the downside, immediate support is seen at 1.2128(23.6%fib),a break below could take the pair towards 1.2066(14DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday after Federal Reserve officials signalled they are nowhere near done raising interest rates. A trio of Fed policymakers signalled on Tuesday that there would be no let up in the tightening campaign aimed at taming the highest inflation since the 1980s, even though it will take rates to a level that will more significantly curb economic activity.Two of them, San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans, are widely regarded as doves.Traders now see a chance of about 44% that the Fed will hike by another 75 basis points at its next meeting in September. Immediate resistance can be seen at 0.9605(38.2%fib), an upside break can trigger rise towards 0.9624(14DMA).On the downside, immediate support is seen at 0.9526 (50%fib), a break below could take the pair towards 0.9457 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Wednesday as dollar advanced after hawkish comments from Federal Reserve officials hinted at continuing aggressive interest rate hikes in the near term. A trio of Fed officials from across the policy spectrum signaled they and their colleagues remain "completely united" on getting U.S. interest rates up to a level that will more significantly curb economic activity and put a dent in the highest inflation since the 1980s. St. Louis Federal Reserve President James Bullard said if inflation does not respond to the Fed's interest rate increases by easing as expected, then rates will have to remain higher for longer . Strong resistance can be seen at 133.29(5DMA), an upside break can trigger rise towards 134.30(23.6%fib).On the downside, immediate support is seen at 132.20 (Daily low), a break below could take the pair towards 130.68 (38.2%fib).
Equities Recap
European stocks were broadly higher on Wednesday despite concerns about escalating conflict between China and the United States over U.S. House Speaker Nancy Pelosi's trip to Taiwan.
At (GMT 11:04 ),UK's benchmark FTSE 100 was last trading down at 0.06% percent, Germany's Dax was up by 0.11 % percent, France’s CAC was up by 0.16 %percent.
Commodities Recap
Gold prices rose on Wednesday, drawing support from escalating tensions between Beijing and Washington, although firmer U.S. Treasury yields capped gains in the non-yielding asset and held it below a one-month high hit in the last session.
Spot gold rose 0.1% to $1,761.33 per ounce by 1029 GMT, having on Tuesday risen to its highest since July 5, hitting $1,787.79 before closing down 0.6% on the day to break a four-session winning streak.
Oil prices dipped on Wednesday ahead of a meeting of OPEC+ producers at which producers are expected to keep output steady with spare capacity limited and against the backdrop of fears that a slowdown in global growth will hit fuel demand.
Brent crude futures were down $1.34, or 1.3%, at $99.20 a barrel at 0815 GMT. West Texas Intermediate (WTI) crude futures fell $1.28, or 1.4%, to $93.14 a barrel.steady with spare capacity limited and against the backdrop of fears that a slowdown in global growth will hit fuel demand.