Europe Roundup: Euro dips, dollar rises as growth fears mount, European shares falls, Gold extends falls, Oil prices up 3% on supply outages-July 1st,2022

Posted at 01 July 2022 / Categories Market Roundups

Market Roundup

•Italian Jun Manufacturing PMI 50.9 , 50.5 forecast, 51.9 previous

•French Jun Manufacturing PMI 51.4, 51.0 forecast, 54.6 previous

•German Jun Manufacturing PMI  52.0, 52.0 forecast, 54.8 previous

•EU Jun Manufacturing PMI  52.1,52.0 forecast, 54.6 previous

•UK May BoE Consumer Credit  1.300B  forecast,1.399B previous

•UK May Mortgage Approvals 66.16K, 64.00K forecast, 65.97K previous

•UK June Manufacturing PMI  52.8, 53.4 forecast, 54.6 previous

•EU Jun CPI (YoY) 8.6%,8.4% forecast,  8.1% previous

•EU Jun HICP ex Energy & Food (YoY)  4.6%, 4.5% forecast, 4.4% previous

• Italian Jun CPI (YoY)  8.0%,7.4% forecast, 6.8% previous

• Italian Jun CPI (MoM)  1.2%, 0.6% forecast,  0.8% previous

• EU CPI (MoM) 0.8%, 0.8% previous

• EU Core CPI (MoM) 0.2%, 0.5% previous

Looking Ahead Economic Data(GMT)

• 13:45 US Jun Manufacturing PMI   52.4 previous

•14:00 US May Construction Spending (MoM)   0.4% forecast, 0.2% previous

•14:00 US Jun ISM Manufacturing Employment  49.6 previous

•14:00 US Jun ISM Manufacturing PMI   54.9 forecast,56.1 previous

•14:00   US Jun ISM Manufacturing Prices  81.0 forecast,  82.2 previous

•17:00U.S. Baker Hughes Oil Rig Count 594 previous

Looking Ahead - Economic events and other releases (GMT)

•No events ahead


EUR/USD: The euro declined on Friday as stronger dollar and weaker Euro zone manufacturing data weighed on euro. A survey showed that euro-zone manufacturing output fell last month for the first time since the first wave of the coronavirus pandemic two years ago, as higher prices and an increasingly gloomy economic outlook discouraged consumers from making purchases. S&P Global's final manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in June from 54.6 in May, the lowest since August 2020 but just ahead of a provisional reading of 52. The euro slipped by as much as 0.5% to $1.04330. It was last down 0.4% at $1.04465. Immediate resistance can be seen at 1.0492(5DMA),an upside break can trigger rise towards 1.0522(38.2%fib).On the downside, immediate support is seen at 1.0391(23.6%fib), a break below could take the pair towards 1.0345(Lower BB).

GBP/USD: Sterling dipped   against the dollar on Friday as renewed fears of a global recession hit the risk-sensitive British currency. More risk-sensitive currencies fell across the board. The Australian dollar and New Zealand dollar both fell by more than 1% on the day, with the Aussie tumbling as much as 1.6% to $0.67900, its lowest since June 2020. After its biggest six-month decline since 2008 against the U.S. dollar, risk sensitive sterling fell 0.5% against the greenback to $1.2114. Meanwhile, amid growing fears that higher borrowing costs will further hurt the UK economy, traders have lowered some of their expectations for a Bank of England rate hike  for the year. Immediate resistance can be seen at 1.2166 (5DMA),an upside break can trigger rise towards 1.2252(38.2%fib).On the downside, immediate support is seen at 1.2026(23.6%fib), a break below could take the pair towards 1.1881(Lower BB).

 USD/CHF: The dollar strengthened against the Swiss franc on Friday as dollar benefited from safe-haven demand on renewed worries about higher rates and a global recession. Disappointing economic data from across the world cemented fears of a global recession. Soaring inflation and hawkish comments from major central bank chiefs this week have steered investors out of risky markets into safe-haven assets such as the dollar. At 12:07 GMT, the dollar was trading 0.72 percent higher versus the Swiss franc at 0.9615. Immediate resistance can be seen at 0.9617(38.1% fib), an upside break can trigger rise towards 0.9708(20 June 2022 high).On the downside, immediate support is seen at 0.9566  (5DMA), a break below could take the pair towards 0.9498(50% fib).

USD/JPY: The dollar declined against the Japanese yen on Friday as worries about the risk of a global recession drove rallies in the safe haven Japanese yen. Runaway inflation and central banks' rush  to raise interest rates and stem the flow of cheap money have fueled the market sell-off and lifted assets seen as safer bets. The Japanese yen gained as much as 0.75% on the day, pulling away from a mid-week low of 137.00  its weakest in 24 years. It was last up 0.4% at 135.235 yen per dollar.  Strong resistance can be seen at 135.78 (5DMA), an upside break can trigger rise towards 137.26(23.6%fib).On the downside, immediate support is seen at 135.05(5DMA), a break below could take the pair towards 133.05 (38.2%fib).

Equities Recap                   

European stocks dipped on Friday after data showed Eurozone manufacturing PMI fell less than expected in June.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading down  at 0.25 percent, Germany's Dax was down by 0.26 percent, France’s CAC finished was down by 0.05 percent.

Commodities Recap

Gold extended its retreat to fall 1% on Friday en route to a third straight weekly dip as a stronger dollar and prospects of higher interest rates eroded its appeal, with an import tax hike by India also seen dampening demand for bullion.

Spot gold was down 0.9% at $1,790.47 per ounce by 1048 GMT, while U.S. gold futures dipped 0.9% to $1,790.50.

 Oil prices rose about 3% on Friday, recouping most of the previous session's declines, as supply outages in Libya and expected shutdowns in Norway outweighed expectations that an economic slowdown could dent demand.

Brent crude futures were up $3.03, or 2.8%, at $112.06 a barrel by 1157 GMT, having dropped to $108.03 a barrel earlier in the session.

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