Posted at 31 August 2022 / Categories Market Roundups
Market Roundup
•US Jun S&P/CS HPI Composite - 20 s.a. (MoM) 0.4%, 1.0% forecast, 1.3% previous
•US House Jun Price Index 398.0, 398.1 previous
•US S&P/CS Jun HPI Composite - 20 n.s.a. (YoY) 18.6%, 19.5% forecast, 20.5% previous
•US S&P/CS Jun HPI Composite - 20 n.s.a. (MoM) 0.4%,1.5% previous
•US Jul JOLTs Job Openings 11.239M, 10.475M forecast, 10.698M previous
•US Aug CB Consumer Confidence 103.2, 97.9 forecast, 95.7 previous
•US Aug Dallas Fed Services Revenues 7.2,9.5 previous
•US Aug Texas Services Sector Outlook -5.7,-10.9 previous
•US API Weekly Crude Oil Stock 0.593M, -5.632M previous
Looking Ahead - Economic Data (GMT)
•05:00 Japan Aug Household Confidence 29.4 forecast,30.2 previous
•05:00 Japan Jul Housing Starts (YoY) -4.1% forecast, -2.2% previous
•05:00 Japan Jul Construction Orders (YoY) 15.5% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro climbed past parity against dollar on Tuesday as increased expectation of super-sized European Central Bank rate hike boosted euro. Market pricing also indicates roughly a 50% chance of a massive 75 basis point interest rate increase at the ECB's next meeting after a parade of ECB speakers at the Fed's annual symposium in Jackson Hole backed the case for a big hike, though this pricing came down a little on Tuesday. Data showed German inflation rose to its highest in almost 50 years in August, beating a high set only three months earlier, and strengthening the case for the European Central Bank to go for a larger rate hike next month. Immediate resistance can be seen at 0.1063(38.2%fib), an upside break can trigger rise towards 1.0093(Aug 26th high).On the downside, immediate support is seen at 0.9979(50%fib), a break below could take the pair towards 0.9900(61.8%fib).
GBP/USD: The British pound fell against dollar on Tuesday as mounting concern about the Uk’s economic weighed on sterling. Britain's services businesses reported a record increase in costs over the past three months and are downbeat about the future, as inflationary headwinds look set to squeeze demand further, the Confederation of British Industry said on Tuesday. The CBI's overall business optimism balance which measures the difference between the percentage of firms who are upbeat and down beat sank to its weakest since May 2020, the height of the COVID-19 pandemic, for both consumer and business services. The CBI data was based on a survey of 199 firms between July 26 and Aug. 15. Immediate resistance can be seen at 1.1757(5DMA), an upside break can trigger rise towards 1.1804(38.2%fib).On the downside, immediate support is seen at 1.1671(23.6%fib),a break below could take the pair towards 1.1570(Lower BB).
USD/CAD: The Canadian dollar declined against dollar Tuesday as lower oil prices and stronger dollar weighed on loonie. Oil prices tumbled on fears that tighter monetary policy to fight inflation will dent the global economy, and soften fuel demand . The Canadian dollar weakened against the greenback on Tuesday, and the yield on benchmark government debt slipped. The loonie was trading 0.7% lower at C$1.3102 to the greenback, or 76.32 U.S. cents, after trading in a range of 1.2973 to 1.3108. Immediate resistance can be seen at 1.3105(23.6%fib), an upside break can trigger rise towards 1.3138 (July 15th high).On the downside, immediate support is seen at 1.3020 (5DMA), a break below could take the pair towards 1.2911 (38.2%fib).
USD/JPY: The dollar edged lower against yen on Tuesday as investors worried about continued U.S. and European interest rate hikes, after data pointed to persistent inflation in both regions despite central banks' policy tightening so far. To discourage speculation that the Fed might cut rates next year to support economic growth, New York Federal Reserve Bank President John Williams said on Tuesday the central bank likely needed to get its policy rate above 3.5%, and was unlikely to cut rates at all next year. All eyes will be on U.S. nonfarm payrolls data for August on Friday, as any cooling in labor demand would ease pressure on the Fed to stick with outsized rate hikes. Strong resistance can be seen at 138.65(Higher BB), an upside break can trigger rise towards 139.30(23.6%fib).On the downside, immediate support is seen at 137.45(Daily low), a break below could take the pair towards 136.99(38.2%fib).
Equities Recap
European stocks turned mixed over the course of the trading day on Tuesday after moving notably higher early in the session.
UK's benchmark FTSE 100 closed down by 0.88 percent, Germany's Dax ended up by 0.53 percent, France’s CAC finished the day down by 0.19 percent.
U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
Dow Jones closed down by 0.96 percent, S&P 500 closed down by 1.10 percent, Nasdaq settled down by 1.12 % percent.
Treasuries Recap
U.S. Treasury yields edged higher on Tuesday, reversing an early morning rally after a sharp rise in job openings added to investor worries about the Federal Reserve's aggressive monetary tightening measures.
Benchmark 10-year Treasury yields were at 3.108%, the highest since the end of June, while two-year note yields climbed to 3.466%, hitting a new 15-year high.
Commodities Recap
Oil prices fell nearly $6 a barrel on Tuesday, the steepest decline in about a month, on fears that fuel demand could soften as global central banks hike rates to fight surging inflation, and as unrest in Iraq failed to dent the OPEC nation's crude exports.
Brent crude futures for October settled down $5.78, or 5.5%, at $99.31 a barrel after touching a session low of $97.55 a barrel.
Gold prices fell on Tuesday as investors positioned for a period of high interest rates in the United States and elsewhere.
Spot gold fell 0.8% to $1,723.65 per ounce by 1:46 p.m. ET (1746 GMT) after hitting a one-month low of $1,719.56 on Monday. U.S. gold futures settled down 0.8% at %1,736.3.