Posted at 09 August 2022 / Categories Market Roundups
Market Roundup
•EU French 12-Month BTF Auction 0.545%, 0.453% previous
•EU French 3-Month BTF Auction 0.053%,0.001% previous
•EU French 6-Month BTF Auction 0.177%,0.180% previous
•US Jul CB Employment Trends Index 117.63, 119.38 previous
•US 3-Month Bill Auction 2.580%, 2.490% previous
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Aug Westpac Consumer Sentiment -3.0% previous
•01:30 Australia NAB Business Confidence 1 previous
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Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher on Monday as investors braced for fresh clues after an unexpectedly strong U.S. jobs report supported the case for more big interest rate hikes from the Federal Reserve. Upbeat US jobs data calmed concerns about a recession but raised the chances of a 75-bps rate hike at the September policy meeting. Data showed that non-farm payroll employment spiked by 528,000 jobs in July after surging by an upwardly revised 398,000 jobs in June. The jobless rate unexpectedly slipped to 3.5 percent from 3.6 percent in June. The dollar index, which measures the safe haven currency against a basket of peers, was at 106.43 at (1850 GMT), down 0.2%, compared with Friday's 10-day high of 106.930 . The euro was up 0.1% at $1.0197. Immediate resistance can be seen at 1.0212(38.2%fib), an upside break can trigger rise towards 1.0294(50%fib).On the downside, immediate support is seen at 1.0169(21DMA), a break below could take the pair towards 1.0105(23.6%fib).
GBP/USD: The British strengthened against the dollar on Monday as traders digested last week's Bank of England (BoE) decision and turned their focus to growth figures due on Friday that should give clues on the state of the economy.The data, expected to show a contraction during the quarter, will be released a week after the Bank of England (BoE) said it expects the United Kingdom to enter a recession in the fourth quarter this year and not emerge until 2024. The central bank's outlook was coupled with a half-point interest rate rise to 1.75%, a large increase by the BoE's standards but lower than those of some other global central banks, including the Federal Reserve and Bank of Canada. Immediate resistance can be seen at 1.2099(14DMA), an upside break can trigger rise towards 1.2154(50%fib).On the downside, immediate support is seen at 1.2057(38.2%fib),a break below could take the pair towards 1.2032(23.6%fib).
USD/CAD: The Canadian dollar rallied against its broadly weaker U.S. counterpart on Monday as oil prices rose and investors continued to bet on another oversized interest rate hike by the Bank of Canada despite disappointing Canadian jobs data last week. The price of crude oil, one of Canada's major exports, rebounded from a six-month low it hit on Friday as positive economic data from China and the United States fed hopes for demand . U.S. crude oil futures settled nearly 2% higher a $90.76 a barrel, while the Canadian dollar was trading 0.5% higher at 1.2860 to the greenback. Immediate resistance can be seen at 1.2906 (38.2%fib), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2840 (50%fib), a break below could take the pair towards 1.2755 (61.8%fib).
USD/JPY: The dollar declined against yen on Monday as dollar pulled back ahead of Wednesday's inflation data to give more clues about the Federal Reserve's next steps. Higher-than-expected U.S. employment figures last week saw the dollar strengthen against major peers because the data was seen by traders as an indication that the Fed could raise interest rates more aggressively to combat inflation. But this move cooled on Monday, with the dollar index slipping to 106.51 by 1035 GMT, down 0.1% on the day, compared with Friday's 10-day high of 106.930 . Strong resistance can be seen at 135.07(5DMA), an upside break can trigger rise towards 136.15(38.2%fib).On the downside, immediate support is seen at 130.33 (50%fib), a break below could take the pair towards 128.33 (61.8%fib).
Equities Recap
European shares opened higher on Monday, led by cyclical and growth stocks, after clocking falls in the previous week when a strong U.S. jobs report rekindled bets of another aggressive rate hike by the U.S. Federal Reserve.
The UK's benchmark FTSE 100 closed up by 0.57 percent, Germany's Dax ended up by 0.84 percent, and France’s CAC finished the up by 0.80 percent.
Wall Street stocks were mostly flat on Monday, the dollar weakened and U.S. government bond yields fell as investors weighed mixed messages on inflation and how aggressive the Federal Reserve might be in combating it.
Dow Jones closed up by 0.09 percent, S&P 500 ended down 0.12 percent, Nasdaq finished the day down by 0.10 percent.
Treasuries Recap
U.S. Treasury yields dipped on Monday as investors continued to digest an unexpectedly strong jobs report from Friday and before highly anticipated inflation data on Wednesday, which will be scrutinized for how aggressively the Federal Reserve is likely to continue to raise interest rates.
Benchmark 10-year note yields fell to 2.794% on Monday, after getting as high as 2.869% on Friday, the highest since July 22. Two-year yields were last 3.232%, after reaching 3.331% on Friday, the highest since June 16.
Commodities Recap
Gold prices rose on Monday following a pullback in the dollar and U.S. Treasury yields, while investor focus shifted to U.S. inflation data for clues on the Federal Reserve’s rate hike plan.
Spot gold rose 0.8% to $1,787.39 per ounce by 2:25 p.m. ET (1825 GMT). U.S. gold futures also settled up 0.8% at %1,805.2.
Oil prices rose nearly 2% on Monday in volatile trading, bouncing off multi-month lows touched last week, as positive economic data from China and the United States fed hopes for demand despite nagging fears of a recession.
Brent crude futures settled $1.73, or 1.8%, at $96.65 a barrel. U.S. West Texas Intermediate crude was at $90.76 a barrel, up $1.75, or 1.97%.