America’s Roundup: Dollar eases as chances for Fed rate hike next week fades, Wall Street ends mixed,Gold slips, Oil prices rise as Saudi output cuts outweigh weak demand signals-June 8th,2023

Posted at 07 June 2023 / Categories Market Roundups

Market Roundup

•Canada Apr Exports  64.85B, 63.56B previous

•Canada Apr Trade Balance 1.94B,  0.90B forecast, 0.97B previous

•Canada Apr Imports  62.91B, 62.59B previous

•US  Apr Trade Balance -74.60B,-75.20B forecast, -64.20B previous

•Canada Labor Productivity (QoQ) (Q1) -0.6%,0.2% forecast, -0.5% previous

•US  Imports 323.60B,320.40B previous

•US  Exports 249.00B,256.20B previous

•Canada BoC Interest Rate Decision 4.75%,4.50% forecast, 4.50% previous

•US  Crude Oil Inventories -0.451M, 1.022M forecast, 4.488M previous

•US  Gasoline Inventories2.746M, 0.880M forecast, -0.207M previous

Looking Ahead Economic Data(GMT)

•23:30 Japan GDP Capital Expenditure (QoQ) (Q1) 0.9% forecast, -0.5% previous

•23:30 Japan GDP (QoQ) (Q1) 0.4% forecast, 0.0% previous

•23:30 Japan Apr Adjusted Current Account   1.01T previous

•23:30 Japan GDP (YoY) (Q1) 2.1% previous

•01:30   Australia Apr Imports (MoM)  2.0% previous

•01:30   Australia Apr Trade Balance  14.000B forecast,    15.269B previous

•01:30   Australia Apr Exports (MoM)  4.0% previous

Looking Ahead Event And Other Releases(GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro edged higher against   dollar on Wednesday as euro was supported by hawkish comments ECB officials. Hawkish comments from European Central Bank (ECB) President Christine Lagarde and Bundesbank President Joachim Nagel on Monday cemented expectations for further rate hikes from the central bank in June.Dutch central bank chief Klaas Knot said that underlying price pressures in the euro zone may prove more difficult to tame but monetary policy is showing signs of effectiveness and further rate hikes must be done step by step. The euro rose 0.11% against the U.S. currency to $1.0703. Immediate resistance can be seen at 1.0715(5DMA), an upside break can trigger rise towards 1.0746(38.2%fib).On the downside, immediate support is seen at  1.0659(23.6%fib), a break below could take the pair towards 1.0624(Lower BB).

GBP/USD: Sterling held steady on Wednesday after data showed the first annual drop in UK house prices in more than a decade, and traders focused on sticky inflation and the outlook for Bank of England monetary policy. Halifax said on Wednesday, as an increase in mortgage rates from the country's largest provider comes into effect. he UK central bank will next convene on June 22, with traders betting on an 88% chance of a 25-basis-point rate rise. The BoE has raised rates 12 times since late 2021 to 4.5% from just 0.1% in to try to calm inflation. Immediate resistance can be seen at 1.2466 (50%fib), an upside break can trigger rise towards 1.2512 (21DMA).On the downside, immediate support is seen at 1.2392(38.2%fib), a break below could take the pair towards 1.2321(23.6%fib).

USD/CAD: The Canadian dollar strengthened to a four-week high against its U.S. counterpart on Wednesday as investors bet that the Bank of Canada would continue to raise interest rates next month after it tightened for the first time since January. The Canadian central bank hiked its benchmark rate by 25 basis points to 4.75%, the highest level in 22 years, on increasing concerns that inflation could get stuck significantly above its 2% target amid persistently strong economic growth.One of Canada's major exports is oil . It settled 1.1% higher at $72.53 a barrel. The Canadian dollar was trading 0.2% higher at 1.3372 to the greenback.  Immediate resistance can be seen at 1.3402(5DMA), an upside break can trigger rise towards 1.3415(38.2%fib).On the downside, immediate support is seen at 1.3312 (23.6%fib), a break below could take the pair towards 1.3279 (Lower BB).

USD/JPY: The U.S. dollar edged higher against Japanese yen on Wednesday as investors awaited U.S. inflation data for May and the Fed’s interest rate decision next week. The U.S. central bank is expected to hold rates steady next Wednesday as it evaluates the impact of recent rate increases, though Fed fund futures traders are pricing for an additional rate hike in July.Consumer inflation data on Tuesday is expected to show that prices rose by 0.30% in May. The dollar gained 0.31% to 140.10 yen , currency to $1.0703. The dollar index was little changed on the day at 104.07. Strong resistance can be seen at 140.78(23.6%fib) an upside break can trigger rise towards 141.36(Higher BB).On the downside, immediate support is seen 139.39(5DMA), a break below could take the pair towards 139.34(38.2%fib)

Equities Recap

European stocks slipped on Wednesday, dented by healthcare stocks and concerns about the outlook for interest rates in the euro zone, although a strong earnings update from Zara owner Inditex boosted retailers and Spanish shares.

UK's benchmark FTSE 100 closed down by 0.05 percent, Germany's Dax ended down by 0.20 percent, France’s CAC finished the day down by 0.09 percent.

The S&P 500 and Nasdaq closed in negative territory on Wednesday as investors took profits after a months-long megacap stocks run and ahead of key economic and policy events next week.

 Dow Jones was trading  up by 0.27 percent, S&P 500 was trading  down by 0.38 percent, Nasdaq was trading  down by 1.29  percent.

Treasuries Recap

Treasury yields rose on Wednesday after the Bank of Canada raised interest rates, a move that could help the Federal Reserve retain a hawkish stance when policymakers meet next week and again say U.S. rates will stay higher for longer.

The two-year   U.S. Treasury yield, which typically moves in step with interest rate expectations, rose up 4.8 basis points to 4.573%, while the benchmark 10-year's   yield rose 9.3 basis points to 3.793%.

Commodities Recap

Gold prices fell 1% on Wednesday, weighed by an uptick in U.S. bond yields, while investors looked forward to inflation data and the Federal Reserve policy meeting next week for more clarity on the U.S. interest rate path.

Spot gold was down 1.1% at $1,942.32 per ounce by 2:42 p.m. EDT (1842 GMT).U.S. gold futures settled down 1.2% to $1,958.40.

Oil prices climbed about 1% on Wednesday as Saudi Arabia's plans for deep output cuts more than offset demand woes stemming from rising U.S. fuel stocks and weak Chinese export data.

Brent crude futures settled 66 cents, or 0.9%, higher at $76.95 a barrel, while U.S. West Texas Intermediate crude futures gained 79 cents, or 1.1%, to $72.53.


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