Posted at 26 August 2022 / Categories Market Roundups
Market Roundup
•US Real Consumer Spending (Q2) 1.5%,1.0% previous
•US PCE Prices (Q2) 7.1%,7.1% previous
•US GDP Sales (Q2) 1.3%,1.1% previous
•US GDP (QoQ) (Q2) -0.6%,-0.8% forecast, -0.9% previous
•US GDP Price Index (QoQ) (Q2) 9.0%,8.7% forecast, 8.9% previous
• US Initial Jobless Claims243K, 253K forecast, 250K previous
•US Continuing Jobless Claims 1,415K,1,442K forecast, 1,437K previous
•US Jobless Claims 4-Week Avg 247.00K ,246.75K previous
• US AugKC Fed Composite Index 3, 13 previous
• US KC Fed Manufacturing Index -9,7 previous
• US 4-Week Bill Auction 2.310% , 2.150% previous
Looking Ahead – Economic data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro recovered some ground against dollar on Thursday as the U.S. currency's recent rally ran out of steam and investors waited to see whether Federal Reserve Chair Jerome Powell would sound a more hawkish tone at a meeting this week. Investors are tossing up between the likelihood of a 50 or 75 basis point rate increase in September as the Fed battles inflation while facing some softer U.S. economic data. Fed officials on Thursday were noncommittal about the size of the rate hike they will approve at their Sept. 20-21 meeting, but continued hammering the point they will drive rates up and keep them there until inflation has been tamed. The dollar index fell 0.14% to 108.46. It is holding just below a 20-year high of 109.29 reached in on July 14.The euro was unchanged against the greenback on the day at $0.9968. Immediate resistance can be seen at 1.0056 (9DMA), an upside break can trigger rise towards 1.0131(38.2%fib).On the downside, immediate support is seen at 0.9960(23.6%fib), a break below could take the pair towards 0.9865 (Lower BB).
GBP/USD: Sterling recouped some losses against the dollar on Thursday but was still languishing near a 2-1/2 year low ahead of upcoming speeches by Bank of England and Federal Reserve officials that could determine the near term outlook for the currency. The Kansas City Federal Reserve's Jackson Hole Symposium kicks off on Thursday, with BoE Governor Andrew Bailey scheduled to join Fed Chair Jerome Powell and other central bankers at the three-day event. The pound hit its lowest level since March 2020 on Tuesday after purchasing managers' index (PMI) data showed activity in the private sector slowed to a crawl in August. Immediate resistance can be seen at 1.1902(38.2%fib), an upside break can trigger rise towards 1.1953(5DMA).On the downside, immediate support is seen at 1.1770(38.2%fib),a break below could take the pair towards 1.1675 (Lower BB).
USD/CAD: The Canadian dollar strengthened to a one-week high against its U.S. counterpart on Thursday, as the greenback broadly fell ahead of a key central bank conference despite a preliminary domestic estimate showing lower July factory sales. Canadian factory sales likely fell 0.9% in July from June, largely driven by decreases in the petroleum and coal product and primary metal industries, Statistics Canada said in a flash estimate. The loonie rose despite a drop in the price of oil, one of Canada's major exports, as investors braced for the possible return to global markets of sanctioned Iranian oil exports. The Canadian dollar was up 0.2% at 1.2935 to the greenback. Immediate resistance can be seen at 1.2955 (38.2%fib), an upside break can trigger rise towards 1.3018 (23.6%fib).On the downside, immediate support is seen at 1.2901 (50%fib), a break below could take the pair towards 1.2888 (21DMA).
USD/JPY: The dollar dipped against yen on Thursday as the dollar stayed weak, awaiting clues about the pace of U.S. monetary policy tightening from the Jackson Hole symposium. Investors across financial markets are bracing for the U.S. central bank to reiterate its commitment to tame inflation or signal a pivot to subdued interest rate hikes. Powell will address the annual global central banking conference at Jackson Hole on Friday. The Fed has raised its benchmark overnight interest rate by 225 basis points in total since March to fight sky-high inflation and indicated that further tightening would depend on economic data. 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 135.59 (9DMA), a break below could take the pair towards 135.35(38.2%fib).
Equities Recap
European shares ended higher on Thursday as oil and tech stocks rose, although gains were capped by mounting concerns over a possible recession induced by an energy crisis.
The UK's benchmark FTSE 100 closed down by 0.11 percent, Germany's Dax ended up by 0.39 percent, and France’s CAC finished the up by 0.08percent.
Wall Street ended sharply higher on Thursday, lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserve's Jackson Hole conference for clues about the central bank's policy outlook.
Dow Jones closed up by 0.98 percent, S&P 500 ended up 1.41 percent, Nasdaq finished the day up by 1.67 percent.
Treasuries Recap
U.S. Treasury yields were little changed to slightly lower on Thursday after hitting multi-week highs the previous session, amid uncertainty as to what Federal Reserve Chair Jerome Powell might say when he speaks on Friday at a global central bank conference in Jackson Hole, Wyoming.
The yield on benchmark 10-year Treasury notes was down 0.4 bps at 3.102%.
Commodities Recap
Gold rose on Thursday as the dollar slipped from recent highs, while investors awaited the Jackson Hole symposium for cues on the Federal Reserve's monetary policy.
Spot gold rose 0.3% to $1,756.55 per ounce by 14:20 p.m. ET. U.S. gold futures settled 0.6% higher at $1,771.4.
Oil prices slumped by about $2 a barrel on Thursday in volatile trade as investors braced for the possible return to global markets of sanctioned Iranian oil exports and on worries that rising U.S. interest rates would weaken fuel demand.
Brent crude settled at $99.34 a barrel, shedding $1.88, or 1.9%. U.S. West Texas Intermediate crude settled at $92.52 a barrel, losing $2.37, or 2.5%.