Posted at 24 August 2022 / Categories Market Roundups
Market Roundup
•Finnish Jul Export Price Index (YoY) 31.0%,37.2% previous
•Finnish Jul Import Price Index (YoY) 32.5%, 34.8% previous
•Canada Corporate Profits (QoQ) 6.5%,1.9% previous
•Canada Wholesale Sales (MoM) -0.6%,0.1% previous
•US Jul Durables Excluding Defense (MoM) 1.2%,0.5% previous
•US Jul Durable Goods Orders (MoM) 0.0%,0.6% forecast, 2.0% previous
•US Jul Core Durable Goods Orders (MoM) 0.3%, 0.2% forecast, 0.4% previous
•US Jul Goods Orders Non Defense Ex Air (MoM) 0.4%,0.3% forecast, 0.7% previous
•US Jul Pending Home Sales (MoM) -1.0%,-4.0% forecast, -8.6% previous
•US Cushing Crude Oil Inventories -3.282M0.192M previous
•US Crude Oil Inventories -3.282M forecast, -0.933M forecast, -7.056M previous
Looking Ahead - Economic Data (GMT)
•17:00 US 5-Year Note Auction 2.860% previous
• 17:00 Brazil Federal Tax Revenue 181.04B previous
Fxbeat
EUR/USD: The euro was at a two-decade low on Wednesday as investor sentiment soured under the weight of high energy prices, a batch of poor global economic data, and more inflation fears. Renewed concerns central banks will keep hiking interest rates aggressively to tame red hot inflation were also high on investors' minds ahead of the closely-watched Jackson Hole central banking symposium which begins on Thursday. The European common currency tumbled 0.4% against the dollar to $0.9925, trading just above its 20 year intraday low hit a day earlier. Immediate resistance can be seen at 0.9980(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 steady against the dollar on Wednesday, holding above a 2-1/2 year low touched a day earlier after data added to signs that a recession may be looming in Britain. Sterling had touched its lowest on Tuesday since March 2020 after the purchasing manager’s index (PMI) data showed growth in Britain’s private sector slowing to a crawl in August, with factory output falling and the larger services sector ekeing out only a modest expansion. The figures added to signs that Britain’s economy will shrink. Sterling has been pummelled by worries around Britain’s surging inflation and declining economy, last week suffering its biggest weekly fall against the greenback since September 2020. Immediate resistance can be seen at 1.1820(38.2%fib), an upside break can trigger rise towards 1.1856(5DMA).On the downside, immediate support is seen at 1.1749(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 Wednesday as investors waited for a Friday speech by the Federal Reserve Chairman for fresh clues on how aggressive the central bank will be in its battle against inflation. Investors have pared back expectations that the Fed could tilt to a slower pace of rate hikes as inflation remains at 8.5% on an annual basis, well above the Fed's 2% target. The focus of Jerome Powell's speech in Jackson Hole will be on to what extent an economic slowdown might alter the Fed’s pace of tightening, or if the need to tame inflation pressures will override other economic factors. The dollar gained even after data on Wednesday showed that new orders for U.S.-made capital goods increased at a slower pace in July from the prior month. Immediate resistance can be seen at 0.9686(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 Wednesday as dollar firmed as investor focus shifted to the Jackson Hole central bankers event for more clues on rate hike plans. Market participants await U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Policy Symposium on Friday. The speech could throw some light on the Fed's monetary policy tightening path. Investors will also focus on the U.S. second-quarter gross domestic product second estimate and July consumer spending data due later this week. 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 shares were little changed on Wednesday, as a rise in defensive stocks countered worries over a looming energy crisis and gloomy growth outlook, while hawkish comments from some U.S. Federal Reserve officials also kept sentiment in check.
At (GMT 14:51),UK's benchmark FTSE 100 was last trading down at 0.28% percent, Germany's Dax was up by 0.09 % percent, France’s CAC was up by 0.32 % percent
Commodities Recap
Gold prices inched lower on Wednesday on a firmer dollar and as investor focus shifted to the Jackson Hole central bankers event for more clues on rate hike plans.
Spot gold fell 0.2% to $1,743.89 per ounce by 09:49 ET (1349 GMT). It rose as much as 1% in the previous session. U.S. gold futures eased 0.3% to $1,758.60.
Benchmark Brent oil held above $100 a barrel on Wednesday after Saudi Arabia suggested this week that OPEC could consider cutting output, though bearish economic signals from central bankers and falling equities weighed.
Brent crude for October settlement traded up 10 cents at $100.32 a barrel by 1332 GMT. U.S. crude was up 16 cents at $93.90.