News

Europe Roundup : Euro edges up before ECB decision , European stocks slip,Gold subdued , Oil sticks near three-month highs despite China lockdowns –June 9th,2022

Posted at 09 June 2022 / Categories Market Roundups


Market Roundup

•Sweden Industrial Production (YoY) 0.1%,0.8% previous

•Sweden Industrial Production (MoM) -0.6%,0.4% previous

•Greek May HICP (YoY) 10.5%, 9.1% previous

•Greek May CPI (YoY) 11.3%,10.2% previous

•Portuguese Apr Trade Balance -7.13B, -6.65B previous

Looking Ahead Economic Data(GMT)

• 11:45 EU Jun Deposit Facility Rate  -0.50% forecast, -0.50% previous

• 11:45 ECB Jun Interest Rate Decision 0.00% forecast,0.00% previous

• 11:45 ECB Marginal Lending Facility 0.25% previous

•12:30 US Initial Jobless Claims 210K forecast,200K previous

•12:30 US  Continuing Jobless Claims 1,305K forecast,1,309K previous

•12:30 US Jobless Claims 4-Week Avg 206.50K previous

•14:30 US Natural Gas Storage 96B forecast, 90B previous

•15:30 US 8-Week Bill Auction 1.040% previous

•15:30 US 4-Week Bill Auction 0.860% previous

Looking Ahead - Events, Other Releases (GMT)

• 12:30 ECB Monetary Policy Statement               

•12:30 ECB Press Conference

•13:30   ECB's Enria Speaks

• 14:00  Canada BoC Financial System Review

•15:00 Canada BoC Gov Macklem Speaks

•15:00 Canada   BoC Senior Deputy Governor Rogers Speaks

•15:30   Canada BoC Senior Deputy Governor Rogers Speaks      

Fxbeat

EUR/USD: The euro steadied against dollar on Thursday­­ before a potentially pivotal European Central Bank rate decision, with policymakers expected to announce an end to the bank's multi-year monetary stimulus. The ECB’s meeting and policy announcement is top of the priority list for the day, with the bank expected to say that it will end its long-running asset purchase programme at the end of June and to promise a rate hike for July as it battles record-high inflation. The euro was trading slightly higher at 0.04 at 1.0716.Immediate resistance can be seen at 1.0753(50%fib),an upside break can trigger rise towards 1.0829(61.8%fib).On the downside, immediate support is seen at 1.0666(38.2%fib), a break below could take the pair towards 1.0563(23rd May low).

GBP/USD: The British pound softened versus the U.S. dollar on Thursday as a gloomy economic outlook and political worries weighed on the currency while the market turned its focus to an imminent announcement from the European Central Bank. By 0842 the pound was down 0.1% against the dollar at $1.2524, having regained ground from earlier in trading when it was down about 0.32% against the dollar at $1.2495. Political uncertainty also still hangs over the British unit after Prime Minister Boris Johnson won a confidence vote earlier this week - but not as comfortably as he might have hoped. Immediate resistance can be seen at 1.2550(5DMA),an upside break can trigger rise towards 1.2603(38.2%fib).On the downside, immediate support is seen at 1.2436(23.6%fib), a break below could take the pair towards 1.2322(Lower BB).

USD/CHF: The dollar steadied against the Swiss franc on Thursday­­ as investors awaited U.S. jobs and inflation data this week that could influence the Federal Reserve’s rate-hike roadmap for fighting inflation. U.S. weekly initial jobless claims data is due at 1230 GMT later in the day. Monthly U.S. consumer price index (CPI) data is due on Friday, which the White House expects to be “elevated”. Economists expect annual inflation to be 8.3%. At (GMT 10:40) greenback dipped 0.12% versus the Swiss franc to 0.9773. Immediate resistance can be seen at 0.9787 (38.2%fib), an upside break can trigger rise towards 0.9913 (23.6%fib).On the downside, immediate support is seen at 0.9732 (5DMA), a break below could take the pair towards 0.9689 (50%fib).

 USD/JPY: The dollar dipped on Thursday­­ against Japanese yen ahead of a highly-anticipated meeting by the European Central Bank, which should offer insights into its monetary policy tightening plans. The ECB is all but certain to flag an end to its long-running asset purchase programme at the end of this month, and promise a rate hike for July, but the size and pace of its tightening are uncertain. Policy announcements are due at 11.45 GMT with a press conference scheduled for 12.30 GMT.Strong resistance can be seen at 134.40 (38.2%fib), an upside break can trigger rise towards 134.68(23.6%fib).On the downside, immediate support is seen at 132.55 (50%fib), a break below could take the pair towards 131.17(61.8%fib).

Equities Recap

European stocks slipped into the red on Thursday as investors awaited the outcome of a European Central Bank meeting later in the day for clues on the pace of policy tightening.

At (GMT 11:05 ),UK's benchmark FTSE 100 was last trading down at 0.38 percent, Germany's Dax was down   by 0.59  percent, France’s CAC finished was down by 0.32 percent.

Commodities Recap

Oil prices hovered near three-month highs on Thursday after parts of Shanghai imposed new COVID-19 lockdown measures although China's stronger-than-expected exports in May offered a boost to the demand outlook.

Brent crude futures for August dipped 14 cents or 0.1% to $123.44 a barrel at 1045 GMT, while U.S. West Texas Intermediate crude for July was at $121.88 a barrel, down 23 cents or 0.2%.

Gold prices fell on Thursday as elevated U.S. Treasury yields dented bullion’s appeal, while investors sought clarity on interest rate hike plans from the European Central Bank and the Federal Reserve.

Spot gold was down 0.3% at $1,847.90 per ounce as of 0956 GMT and U.S. gold futures had declined 0.3% to $1,850.50.

 


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