News

America’s Roundup: Dollar weakens as soft data backs US recession outlook, Wall Street slides, Gold firms, Oil falls 2% on recession fears, swelling US fuel stocks-April 21st,2023

Posted at 21 April 2023 / Categories Market Roundups


Market Roundup

•US Continuing Jobless Claims 1,865K, 1,820K forecast,1,810K previous

•US Jobless Claims 4-Week Avg 239.75K, 255.15K forecast,240.00K previous

• US Initial Jobless Claims 245K, 240K forecast, 239K previous

• US Apr Philadelphia Fed Manufacturing Index -31.3, -19.2 forecast, -23.2 previous

• US Apr Philly Fed New Orders  -22.7,-21.2 forecast, -28.2 previous

• US Apr Philly Fed CAPEX Index  -5.40,8.30 forecast,-3.80 previous

• US Apr Philly Fed Business Conditions -1.5,-11.9 forecast, -8.0 previous

• US Apr Philly Fed Prices Paid  8.20,28.00 forecast, 23.50 previous

• US Apr Philly Fed Employment -0.2,-2.6 forecast,-10.3 previous

• US  Mar Existing Home Sales  4.44M,4.50M forecast,4.58M previous

• US  Mar US Leading Index (MoM)  -1.2%, -0.6% forecast,-0.3% previous

• US Natural Gas Storage75B,69B forecast, 25B previous

•US 4-Week Bill Auction 3.190% forecast,4.030% previous

•US 8-Week Bill Auction 4.850%                forecast, 4.790% previous

Looking Ahead Economic Data (GMT)

•No data Ahead

Looking Ahead Events And Other Releases(GMT)

•No events ahead

Currency Summaries

EUR/USD: The euro steadied on Thursday  as the dollar weakened after soft U.S. economic data strengthened the case for a pause in interest rate hikes by the Federal Reserve. Thursday's data showed U.S. initial claims rose modestly to 245,000 in the latest week, while the week before was revised to show 1,000 more claims than previously reported.A separate report from the Philadelphia Fed showed its measure of factory activity in the mid-Atlantic region plunged to the lowest level in nearly three years in April. Manufacturers in the region expected activity to remain subdued over the next six months. Immediate resistance can be seen at 1.0971(5DMA), an upside break can trigger rise towards 1.1036(Higher BB).On the downside, immediate support is seen at 1.0905(38.2%fib ), a break below could take the pair towards 1.0848 (April 11th low).

GBP/USD: The pound retreated on Thursday after data showed British inflation is proving far more persistent than expected and is far higher than anywhere else in Western Europe, underscoring the threat to an already fragile economy. Headline inflation fell to 10.1% in March from February’s 10.4%, but it was well above expectations for a fall to 9.8%, data showed on Wednesday. More worryingly, the details in the report from the Office for National Statistics showed price pressures are everywhere and cannot be easily explained away by the sharp rise in the cost of energy over the last couple of years. The pound was last flat against the dollar at $1.243.Immediate resistance can be seen at 1.2449(5DMA), an upside break can trigger rise towards 1.2541(23.6%fib).On the downside, immediate support is seen at 1.2374(38.2%fib), a break below could take the pair towards 1.2281(April 3rd low).

 USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday as oil prices fell and investors took some profit after recent moves higher for the currency. The loonie was trading 0.1% lower at 1.3475 to the greenback, or 74.21 U.S. cents. It touched its weakest since April 12 at 1.3489 but was still up nearly 3% since mid-March . The price of oil, one of Canada's major exports, settled 2.4% lower at $77.29 a barrel on fears a possible recession could dent fuel demand and after a rise in U.S. gasoline inventories. Immediate resistance can be seen at 1.3503 (38.2%fib), an upside break can trigger rise towards 1.3508 (23.6%fib).On the downside, immediate support is seen at 1.3457 (50%fib), a break below could take the pair towards 1.3439 (5DMA).

USD/JPY: The dollar declined against Japan's yen on Thursday as weak data reinforced expectations the world's largest economy is likely headed toward recession, further supporting the view that the Federal Reserve could pause in June after another expected rate hike next month.The greenback hit session lows against the yen   data showed higher weekly jobless claims, a precipitous drop in mid-Atlantic business activity, and lower existing home sales. Against the yen, the dollar sank 0.3% to 134.30 yen . Strong resistance can be seen at 134.78(38.2%fib), an upside break can trigger rise towards 135.15(Higher BB).On the downside, immediate support is seen at 133.82(5DMA), a break below could take the pair towards 132.34(23.6%fib)

Equities Recap

European shares ended lower for the second straight session on Thursday as earnings reports disappointed and automakers fell after weak quarterly results from U.S. EV-maker Tesla.

UK's benchmark FTSE 100 closed up  by  0.05 percent, Germany's Dax ended up by 0.62 percent, France’s CAC finished the day down  by 0.14percent.                         

Major U.S. stock indexes ended lower on Thursday after disappointing quarterly reports from companies including Tesla and AT&T, while investors sought clarity on the path of interest rates.

Dow Jones closed down  by  0.33% percent, S&P 500 closed down by 0.60 % percent, Nasdaq settled down  by 0.80%  percent.

Commodities Recap

Gold prices firmed above the key $2,000 level again on Thursday as the dollar and Treasury yields pulled back after soft U.S. economic data strengthened the case for a pause in interest rate hikes by the Federal Reserve.

Spot gold climbed 0.7% to $2,006.26 per ounce by 1:40 p.m. EDT (17:40 GMT), after hitting a two-week low of $1969.1 in the previous session. U.S. gold futures settled 0.6% higher at $2,019.10.

Oil prices slid by about $2 a barrel to their lowest level since late March on Thursday, dragged lower by fears a possible recession could dent fuel demand and after a rise in U.S. gasoline inventories.

Brent crude futures settled at $81.10 a barrel, shedding $2.02, or 2.4%. West Texas Intermediate crude (WTI) futures settled at $77.29 a barrel, losing $1.87, or 2.4%.


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