Posted at 12 August 2022 / Categories Market Roundups
Market Roundup
•US Jul PPI (MoM) -0.5%,0.2% forecast, 1.1% previous
•US Jul Core PPI (MoM) 0.2%,0.4% forecast, 0.4% previous
•US Jul PPI (YoY) 9.8% ,10.4% forecast,11.3% previous
•US Jul Core PPI (YoY) 7.6%,7.6% forecast, 8.2% previous
•US Initial Jobless Claims 262K,263K forecast, 260K previous
•US Jobless Claims 4-Week Avg. 252.00K ,254.75K previous
•US Continuing Jobless Claims1,428K, 1,407K forecast, 1,416K previous
•US Jul PPI (YoY) 5.8%, 6.4% previous
•US Jul PPI (MoM) 0.2%, 0.3% previous
Looking Ahead – Economic data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro edged lower on Thursday as investors digested signs of cooling U.S. inflation and hopes the Federal Reserve could slow interest rate hikes against warnings that the battle with rising prices was far from over. Thursday’s data showed U.S. producer prices (PPI) unexpectedly fell in July amid a drop in the cost of energy products. This followed Wednesday's surprise news that consumer prices (CPI) were unchanged in July due to a drop in gasoline prices. The dollar, which fell 1% on Wednesday on the prospect of a more dovish Fed, pared losses on Thursday. Immediate resistance can be seen at 1.0355(50DMA), an upside break can trigger rise towards 1.0411(50%fib).On the downside, immediate support is seen at 1.0274(38.2%fib), a break below could take the pair towards 1.0218(21DMA).
GBP/USD: Sterling edged lower against dollar on Thursday a day ahead of gross domestic product (GDP) figures which are expected to show further signs of a weakening British economy. UK GDP is expected to have shed 0.3% in the second quarter from a 0.4% growth in the first three months of the year. The pound is one of the worst performers out of the G10 currencies this year, having fallen almost 10% against the U.S. dollar in 2022. Investors turned their focus this week to the energy crisis after reports Britain was planning organised blackouts over winter, while concerns around surging consumer energy debt also weighed on sentiment. Immediate resistance can be seen at 1.2257(38.2%fib), an upside break can trigger rise towards 1.2299(1st Aug).On the downside, immediate support is seen at 1.2168(50%fib),a break below could take the pair towards 1.2132 (5DMA).
USD/CAD: The Canadian dollar climbed to its highest level in more than two months against a broadly weaker U.S. counterpart on Thursday as oil prices rose and investors weighed further evidence of cooling inflation in the United States. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to risk appetite. U.S. crude prices were up 0.9% at $92.74 a barrel after the International Energy Agency raised its oil demand growth forecast for this year, with soaring gas prices driving some consumers to switch to oil. The Canadian dollar was trading 0.3% higher at 1.2734 per greenback, after touching its strongest level since June 10 at 1.2732. Immediate resistance can be seen at 1.2808 (5DMA), an upside break can trigger rise towards 1.2835 (38.2%fib).On the downside, immediate support is seen at 1.2756 (50%fib), a break below could take the pair towards 1.2668 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Thursday as comments by U.S. Federal Reserve officials pointed towards further interest rate hikes, despite signs of easing inflation in the world's largest economy. Data showed U.S. consumer prices did not rise in July due to a sharp drop in the cost of gasoline, lifting hopes that the Fed would be less aggressive on its tightening plans going forward. However, Fed policymakers noted that they would continue to tighten monetary policy until price pressures were fully broken. The Japanese yen weakened 0.09% versus the greenback at 133.04 per dollar. Strong resistance can be seen at 133.78(38.2%fib), an upside break can trigger rise towards 135.49(23.6%fib).On the downside, immediate support is seen at 132.30(50%fib), a break below could take the pair towards 130.99 (61.8%fib).
Equities Recap
European shares were little changed on Thursday as earnings proved to be a mixed bag and German government bond yields crept higher, echoing moves in U.S. Treasuries.
UK's benchmark FTSE 100 closed up by 0.55 percent, Germany's Dax ended down by 0.05 percent, France’s CAC finished the day up by 0.33 percent.
The S&P 500 and Nasdaq finished in the red as investors digested signs of cooling U.S. inflation and hopes the Federal Reserve could slow interest rate hikes against warnings that the battle with rising prices was far from over.
Dow Jones closed up by 0.08% percent, S&P 500 closed down by 0.07% percent, Nasdaq settled down by 0.58% percent.
Treasuries Recap
U.S. Treasury yields pared an earlier drop on Thursday before the Treasury Department sells new 30-year bonds, even as data showed that U.S. producer prices unexpectedly fell in July.
Benchmark 10-year note yields fell two basis points to 2.759%. Two-year note yields fell 8 basis points to 3.136%.
Commodities Recap
Gold prices edged lower on Thursday, weighed down by prospects of more rate hikes by the U.S. Federal Reserve even as data pointed to signs of inflation peaking.
Spot gold fell 0.1% to $1,789.83 per ounce by 1741 GMT. U.S. gold futures settled down 0.4% at $1,807.2.
Oil prices settled up more than $2 on Thursday after the International Energy Agency raised its oil demand growth forecast for this year as soaring natural gas prices have some consumers switching to oil.
Brent crude futures gained $2.20, or 2.3%, to settle at $99.60 a barrel. U.S. West Texas Intermediate crude futures settled up $2.41, or 2.6%, to $94.34.