Posted at 01 July 2022 / Categories Market Roundups
Market Round
•US May PCE Price index (YoY) 6.3 ,6.3 previous
•US May Personal Income (MoM) 0.5%, 0.5% forecast ,- 0.4% previous
•US May Personal Spending (MoM) 0.2%,0.4%forecast ,0.9% previous
•US PCE price index (MoM) 0.6%0.2% previous
•US May Core PCE Price Index (MoM) 0.3%,0.4% forecast , 0.3% previous
•US May Core PCE Price Index (YoY) 4.7%, 4.8%forecast ,4.9% previous
Canada Apr GDP (MoM) 0.3%, 0.3% forecast, 0.7% previous
•US Initial Jobless Claims231K ,228K forecast, 29K previous
•US Continuing Jobless Claims 1,328K,1,310K forecast,1,315K previous
•US Jobless Claims 4-Week Avg. 231.75K,223.50K previous
•US Chicago PMI 56.0, 58.0 forecast,60.3 previous
•US Natural Gas Storage 82B ,74B forecast, 74B previous
Looking Ahead Economic Data(GMT)
•01:30 China Caixin Jun Manufacturing PMI 50.1 forecast, 48.1 previous
•05:30 Australia Commodity Prices (YoY) 30.4% previous
Looking Ahead - Events, Other Releases (GMT
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar selling intensified as after soft U.S. consumer spending data. In a sign of a slowing U.S. economy, consumer spending rose a less-than-expected 0.2% last month, the Commerce Department said. It also lowered data for April to show outlays increased 0.6% instead of 0.9% as previously reported.But inflation maintained its upward trend in May, with the personal consumption expenditures (PCE) price index rising 0.6% after gaining 0.2% in April. The PCE price index climbed 6.3% on an annual basis after advancing by the same margin in April, or more than triple the Fed's target of 2% yearly inflation. Immediate resistance can be seen at 1.0497(5DMA),an upside break can trigger rise towards 1.0533(38.2%fib).On the downside, immediate support is seen at 1.0384(23.6%fib), a break below could take the pair towards 1.0299(Lower BB).
GBP/USD: The British pound rose against the dollar on Thursday, as investors shrugged off official data revealing a record shortfall in the United Kingdom’s current account deficit in early 2022. Data on Thursday showed Britain racking up a record shortfall in its current account in the first three months of this year, as the deficit ballooned to 51.7 billion pounds ($62.8 billion), or 8.3% of gross domestic product. Despite the bounce, the pound has rounded off its biggest six-month drop since 2016 in the first half of 2022, down over 10% versus the dollar this year.The pound was up 0.27% against the dollar at $1.21575, clawing back losses that had seen it trade 0.2% lower earlier in the day. Immediate resistance can be seen at 1.2202(5DMA),an upside break can trigger rise towards 1.2353(38.2%fib).On the downside, immediate support is seen at 1.2094(23.6%fib), a break below could take the pair towards 1.1963(Lower BB).
USD/CAD: The Canadian dollar rose against its U.S. counterpart on Thursday, clawing back a small part of its quarterly decline, as the greenback broadly lost ground after data showed a slowdown in underlying U.S. inflation. A U.S. Commerce Department report suggested inflation had probably peaked, with the core PCE price index advancing 4.7% on a year-on-year basis in May, the smallest increase since last November. Separately, the Federal Reserve Bank of Atlanta's running estimate of U.S. GDP growth for the second quarter showed a decline of 1%. The U.S. economy contracted in the first quarter. The Canadian dollar was trading 0.1% higher at 1.2880 to the greenback, after trading in a range of 1.2862 to 1.2933.Immediate resistance can be seen at 1.2880 (5 DMA), an upside break can trigger rise towards 1.2917 (23.6%fib).On the downside, immediate support is seen at 1.2815 (38.2%fib), a break below could take the pair towards 1.2774 (June 13th low).
USD/JPY: The dollar declined against the Japanese yen on Thursday as U.S. data supported recession fears. U.S. consumer spending rose less than expected in May as motor vehicles remained scarce while higher prices forced cutbacks on purchases of other goods, another sign that the rebound in economic growth early in the second quarter was losing steam.Though the report from the Commerce Department on Thursday suggested inflation had probably peaked, price pressures remained strong enough to keep the Federal Reserve on its aggressive monetary policy tightening path. Nevertheless, Fed officials should welcome cooling demand. Strong resistance can be seen at 136.13 (5DMA), an upside break can trigger rise towards 136.69(Higher BB).On the downside, immediate support is seen at 134.79(38.2%fib), a break below could take the pair towards 133.34(50%fib).
Equities Recap
European stocks tumbled on Thursday as concerns about inflation and interest rate hikes triggered heavy selling across various sectors in most of the markets in the region.
UK's benchmark FTSE 100 closed down by 1.96 percent, Germany's Dax ended down by 1.68 percent, France’s CAC finished the day down by 1.80 percent.
Wall Street ended lower on Thursday, crossing the finish line of a grim month and quarter, a dismal coda to the S&P 500's worst first half in more than half a century.
Dow Jones was trading down by 0.82 percent, S&P 500 was trading lower by 0.88 percent, Nasdaq was trading down by 1.33 percent.
Commodities Recap
Gold slipped on Thursday, heading for its worst quarter in five as a hawkish tone from global central banks dimmed appeal for the non-yielding asset.
Spot gold fell 0.6% to $1,806.55 per ounce by 2:36 p.m. ET (1836 GMT), on track to fall more than 6% for the quarter. U.S. gold futures settled down 0.6% at $1,807.3.
Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude futures for September delivery fell $3.42, or 3%, to settle at $109.03 per barrel. The August contract, which expires on Thursday, fell $1.45, or 1.3%, to settle at $114.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fell $4.02, or 3.7%, to settle at $105.76 a barrel.