Posted at 25 August 2022 / Categories Market Roundups
Market Roundup
•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)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Japan BoJ Board Member Nakamura Speaks
Currency Summaries
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 euro fell to a two-decade low before edging up 0.05% to $0.9972. The dollar index rose 0.037%. The dollar index rose 0.037%. 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/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as the greenback broadly rallied and preliminary domestic data showed wholesale trade falling in July . Canadian wholesale trade likely fell 0.6% in July from June, dragged by lower sales of motor vehicles and motor vehicle parts, Statistics Canada said. The data adds to recent evidence showing a cooling of economic growth in the third quarter. The price of oil, one of Canada's major exports, was up 0.6% at $94.33 a barrel. The Canadian dollar was trading 0.4% lower at 1.30 to the greenback , after moving in a range of 1.2954 to 1.3015.Immediate resistance can be seen at 1.2983 (5DMA), an upside break can trigger rise towards 1.3050 (23.6%fib).On the downside, immediate support is seen at 1.2943 (38.2%fib), a break below could take the pair towards 1.2896 (14DMA).
USD/JPY: The dollar strengthened against yen on Wednesday ahead of a speech in two days by Federal Reserve Chair Jerome Powell that may affirm the U.S. central bank's aggressive policy to tame inflation. The U.S. dollar approached recent highs against a basket of major currencies after it was pressured on Tuesday by disappointing U.S. business activity data that could raise prospects of the Federal Reserve dialing back its hawkish stance. Traders of fed funds futures last priced in a 60.5% chance that the Fed will raise rates by 75 basis points next month, and a 39.5% probability of a 50-basis point increase. 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).
Equities Recap
European shares eked out gains by the close on Wednesday, buoyed by a rise in defensive stocks, though worries over a looming energy crisis and gloomy growth outlook kept gains in check.
The UK's benchmark FTSE 100 closed down by 0.22 percent, Germany's Dax ended up by 0.20 percent, and France’s CAC finished the up by 0.39 percent.
Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the U.S. Federal Reserve's Jackson Hole conference this week.
Dow Jones closed up by 0.18 percent, S&P 500 ended up 0.29 percent, Nasdaq finished the day up by 0.41 percent.
Treasuries Recap
U.S. Treasury yields touched fresh multi-week highs on Wednesday, as investors continued to square up positions ahead of what could be a pivotal central bank gathering in Wyoming that could see the Federal Reserve reinforce its tightening message to stamp out inflation.
The yield on 10-year Treasury notes was up 5 bps at 3.104%.The yield on the 30-year Treasury bond rose 4.4 bps to 3.300%.
Commodities Recap
Gold steadied on Wednesday as investors await the Jackson Hole central bankers' event for clues on rate hikes.
Spot gold was up 0.1% at $1,749.35 per ounce by 2:29 p.m. ET (1829 GMT). It rose as much as 1% in the previous session.U.S. gold futures settled unchanged at $1,761.5.
Oil prices ended Wednesday higher after a volatile trading session on concerns that the United States will not consider additional concessions to Iran in its response to a draft agreement that would restore Tehran's nuclear deal - and potentially the OPEC member's crude exports.
Brent crude settled up $1.00 to $101.22 while U.S. crude settled up $1.15 to $94.89 a barrel. Both benchmarks fell by more than $1 earlier in the session.