Posted at 07 June 2022 / Categories Market Roundups
Market Roundup
•German Apr Factory Orders (MoM) -2.7%,0.3% forecast,-4.7% previous
•German May IHS Markit Construction PMI 45.4, 46.0 previous
•UK May Composite PMI 53.1,51.8 forecast, 58.2 previous
•EU Jun Sentix Investor Confidence -15.8,-20.0 forecast,-22.6 previous
•UK May Services PMI 53.4,51.8 forecast,58.9 previous
Looking Ahead Economic Data
•12:30 Canada Apr Exports 61.76B forecast,63.63B previous
•12:30 US Imports 351.50B previous
•12:30 US Apr Trade Balance-89.50B forecast,-109.80B previous
•12:30 Canada Apr Trade Balance 2.90B forecast,2.49B previous
•12:30 Canada Apr Imports 58.11B forecast,61.14B previous
•13:00 French 12-Month BTF Auction 0.092% previous
•13:00 French 3-Month BTF Auction -0.561% previous
•13:00 French 6-Month BTF Auction -0.432% previous
•14:00 Canada May Ivey PMI 66.3 previous
•14:00 Canada May Ivey PMI n.s.a 68.0 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against stronger dollar on Tuesday as market already priced in a lot in terms of the European Central Bank’s monetary tightening. Investors fear that the ECB might tighten aggressively, giving up on president Christine Lagarde’s commitment to raise rates gradually as recession fears fade. Analysts expect the ECB to announce at its meeting on Thursday the end of its net asset purchases and to confirm that policy rate lift-off will start in July. Money markets are currently pricing in around 130 bps of ECB rate hikes by year-end, which involves at least one 50 bps move in 2022.Immediate resistance can be seen at 1.0695(5DMA), an upside break can trigger rise towards1.0761(38.2%fib), On the downside, immediate support is seen at 1.0647(23.6%fib), a break below could take the pair towards 1.0555(23rd May low).
GBP/USD: Sterling fell to near three-week lows on Tuesday as a broader rise in the U.S. dollar and fresh political headwinds for embattled British Prime Minister Boris Johnson unnerved investors.The British currency fell 0.73% to its lowest level since May 19 at $1.2433. Against the euro, the pound weakened by 0.5% to 85.76 pence. Johnson won the confidence vote 211 to 148, but his 59% share of the vote was less than the 63% achieved by his predecessor Theresa May in her confidence vote of December 2018 who was replaced seven months later Immediate resistance can be seen at 1.2556(38.2%fib),an upside break can trigger rise towards 1.2658(50%fib).On the downside, immediate support is seen at 1.2427(23.6%fib), a break below could take the pair towards 1.2328(May 19th low).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as aggressive tightening plans by major central banks would keep interest rates elevated for an extended period, boosted U.S. Treasury yields and greenback. The dollar firmed as benchmark 10-year note yields climbed to their highest in nearly a month.The Federal Reserve is on track for half-point interest rate increases in June and July, and last week’s solid jobs report boosted expectations of continued tightening by the U.S. central bank.The CPI report due on Friday is being awaited for further clues on the pace of U.S. rate hikes. Immediate resistance can be seen at 0.9773 (38.2%fib), an upside break can trigger rise towards 0.9852 (23.6%fib).On the downside, immediate support is seen at 0.9706 (50%fib), a break below could take the pair towards 0.9657 (5DMA).
USD/JPY: The dollar strengthened on Tuesday as rising U.S. Treasury yields supported the greenback, pushing the Japanese yen to its lowest level against the dollar in two decades. The yen dropped to a 20-year low of 133 per dollar, levels that had previously been highlighted as intervention territory, a day after central bank governor Haruhiko Kuroda reiterated an unwavering commitment to "powerful" monetary stimulus. Benchmark 10-year Treasury yields had climbed as high as 3.064% in Tokyo trading for the first time in almost four weeks, before slipping back to 3.0307%. Strong resistance can be seen at 132.82 (23.6%fib), an upside break can trigger rise towards 133.00(Psychological level).On the downside, immediate support is seen at 131.08 (5DMA), a break below could take the pair towards 130.88(38.2%fib).
Equities Recap
European shares fell on Tuesday as investors worried about the squeeze to economic growth from aggressive monetary policy tightening by central banks in a bid to tame rising inflation..
At (GMT 11:06 ),UK's benchmark FTSE 100 was last trading down at 0.12 percent, Germany's Dax was down by 1.05 percent, France’s CAC finished was down by 0.88percent.
Commodities Recap
Gold prices rose on Tuesday on investor concern over the economic fallout of aggressive policy tightening by major central banks, although gains were limited as elevated U.S. Treasury yields supported the dollar.
Spot gold rose 0.2% to $1,845.20 per ounce by 0842 GMT, bouncing off a one-week trough of $1,836.10 touched earlier in the session..
Oil prices were stable on Tuesday as the market balanced risk sentiment with supply concerns and the prospect of higher demand as China relaxes its COVID curbs.
Brent crude futures were down 38 cents, or 0.3%, at $119.13 barrel at 0926 GMT.
U.S. West Texas Intermediate (WTI) crude futures were down 25 cents, or 0.2%, at $118.25 a barrel, having risen by over $1 per barrel earlier in the session.