Posted at 23 August 2022 / Categories Market Roundups
Market Roundup
•French Aug Services PMI 51.0,53.0 forecast,53.2 previous
•French Aug Manufacturing PMI 49.0, 49.0 forecast,49.5 previous
•German Aug Manufacturing PMI 49.8,48.2 forecast , 49.3 previous
•German Aug Composite PMI 47.6,47.4 forecast ,48.1 previous
• German Aug Services PMI 48.2,49.0 forecast , 49.7 previous
• EU Aug Services PMI 50.2, 50.5 forecast , 51.2 previous
• EU Aug S&P Global Composite PMI 49.2, 49.0 forecast , 49.9 previous
•UK Manufacturing PMI 46.0, 51.0 forecast , 52.1 previous
•UK Composite PMI 50.9, 51.3 forecast , 52.1 previous
•UK Services PMI 52.5, 52.0 forecast , 52.6 previous
•UK Aug CBI Industrial Trends Orders -7 , 3 forecast ,8 previous
Looking Ahead - Economic Data (GMT)
•13:45 US Aug Services PMI 49.2 forecast ,47.3 previous
•13:45 US Aug Manufacturing PMI 52.0 forecast ,52.2 previous
•13:45 US Aug S&P Global Composite PMI 49.0 forecast , 47.7 previous
•14:00 US Aug Richmond Services Index -13 previous
•14:00 US Jul New Home Sales (MoM) -8.1% previous
•14:00 EU Aug Consumer Confidence -28.0 forecast ,-27.0 previous
•14:00 US Jul New Home Sales 575K forecast ,590K previous
Fxbeat
EUR/USD: The euro fell to a fresh two-decade low on Tuesday, dealt a fresh blow by renewed concern that an energy shock will keep inflation elevated and makes a recession in Europe all but certain. Business activity data from Europe was not as bad as feared, pushing the euro off the 20-year low hit early in the session, at $0.9900 . Still, euro zone business activity contracted for a second straight month in August and a bleak outlook kept the euro down.At 1116 GMT, the currency was down 0.15% at $0.9926 and holding below the key $1-level. Immediate resistance can be seen at 0.9960(38.2%fib), an upside break can trigger rise towards 1.0029(50%fib).On the downside, immediate support is seen at 0.9990(Daily low), a break below could take the pair towards 0.9879 (23.6%fib).
GBP/USD: Sterling was slightly higher against the dollar on Tuesday after Purchasing Managers index (PMI) data from Britain showed that business activity slowed roughly in line with expectations.The PMI composite flash estimate dropped to 50.9 in August from 52.1 in July. Economists polled by Reuters had forecast the index would fall to 51.1. The pound hit a fresh 2-1/2-year low versus the greenback earlier in the session on concerns that Britain's PMI data would have kept the pound without any solid floor against the dollar. By 0901 GMT, sterling rose 0.05% versus the dollar to $1.1771 after hitting its lowest since end-March 2020 at $1.1718. Immediate resistance can be seen at 1.1806(38.2%fib), an upside break can trigger rise towards 1.1856(5DMA).On the downside, immediate support is seen at 1.1725(Daily low),a break below could take the pair towards 1.1675 (23.6%fib).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday as investors embraced the safe-haven currency amid broader economic growth concerns. Another reason investors have sought shelter in dollars is the growing risk of a hawkish message from the Federal Reserve’s Jackson Hole symposium, flagged by several officials last week. Against a basket of currencies, the U.S. dollar index stood firm at 108.9, attempting to breach a two-decade high of 109.29 hit in July. At (GMT 12:03), greenback gained 0.51% versus the Swiss franc to 0.9687. Immediate resistance can be seen at 0.9694(Daily high), an upside break can trigger rise towards 0.9748(23.6%fib).On the downside, immediate support is seen at 0.9668(38.2%fib), a break below could take the pair towards 0.9605(50%fib)
USD/JPY: The dollar strengthened against yen on Tuesday as dollar steadied ahead of a central bank symposium this week. U.S. Fed Chair Jerome Powell will address the annual global central banking conference in Jackson Hole, Wyoming on Friday. Investors waited for Fed Chair Jerome Powell's comments on inflation and the rate outlook. The speech that could signal how high U.S. interest rates will go to tame surging inflation. Investors will look to the U.S. central bank's stance after it hiked rates by 225 basis points since March. Strong resistance can be seen at 137.76(23.6%fib), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 136.59 (5DMA), a break below could take the pair towards 135.80(5DMA).
EquitiesRecap
European stocks traded mixed in cautious trade on Tuesday as the deepening energy crisis in the region fueled recession fears.
At (GMT 12:07),UK's benchmark FTSE 100 was last trading down at 0.69% percent, Germany's Dax was down by 0.12 % percent, France’s CAC was down by 0.32 % percent
Commodities Recap
Gold steadied on Tuesday after touching a near one-month low in the previous session, as cautious investors weighed economic risks against hawkish signals from Federal Reserve officials ahead of a central bank symposium this week.
Spot gold was little changed at $1,736.10 per ounce by 1132 GMT. Prices hit $1,727.01 on Monday, their lowest since July 27. U.S. gold futures rose 0.1% to $1,749.70.
Oil rose $1 a barrel on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.
Global benchmark Brent crude gained $1.32, or 1.4%, to $97.80 a barrel by 1110 GMT. U.S. West Texas Intermediate crude rose $1.65, or 1.8%, to $92.01.