Posted at 08 June 2023 / Categories Market Roundups
•French Non-Farm Payrolls (QoQ) (Q1)0.3%,0.2% forecast,0.2%revious
•EU GDP (YoY) (Q4)1.0%,1.2% forecast,1.8% previous
•EU Employment Change (YoY) (Q1)1.6%,1.7% forecast,1.5% previous
•EU Employment Overall (Q1)168,181.0K,165,041.5K previous
•EU GDP (QoQ) (Q1)-0.1%,0.0% forecast,0.1% previous
• EU Employment Change (QoQ) (Q1)0.6%,0.6% forecast,0.3% previous
Looking Ahead Economic Data(GMT)
• 12:30 US Continuing Jobless Claims 1,800K forecast,1,795K previous
• 12:30 US Initial Jobless Claims 235K forecast, 232K previous
•12:30 US Jobless Claims 4-Week Avg.209.67K forecast,229.50K previous
•14:00 US Apr Wholesale Trade Sales (MoM) 0.4% forecast, -2.1% previous
•14:00 US Apr Wholesale Inventories (MoM) )-0.2% forecast, 0.0% previous
•14:30 US Natural Gas Storage 104B forecast,110B previous
•15:30 US 4-Week Bill Auction 5.130% previous
•15:30 US 8-Week Bill Auction 5.220% previous
Looking Ahead Events And Other Releases (GMT)
•No Data Ahead
EUR/USD: The euro edged higher against dollar on Thursday as expectations that the European Central Bank will continue to tighten its monetary policy supported euro. This sentiment comes after the Bank of Canada hiked its overnight rate to a 22-year high of 4.75% on Wednesday and markets and analysts immediately forecast yet another increase next month. Traders see about a 97% chance of a 25 basis point rate hike by ECB next week. The euro was last up 0.3% at $1.073 against the dollar, the most traded currency pair in global markets. Immediate resistance can be seen at 1.0745(38.2%fib), an upside break can trigger rise towards 1.0766(21DMA).On the downside, immediate support is seen at 1.0663(23.6%fib), a break below could take the pair towards 1.0645(Lower BB).
GBP/USD: Sterling strengthened on Thursday as dollar fell a day after a surprise rate hike from the Bank of Canada suggested the Federal Reserve may also have more work to do to combat inflation. The Canadian decision put the spotlight back on the Federal Reserve, which sets interest rates on Wednesday next week.According to derivative market pricing, traders currently think there's a 70% chance the Fed will hold rates steady next week, and a 30% chance of a 25 basis point (bp) increase. Immediate resistance can be seen at 1.2495 (23.6%fib), an upside break can trigger rise towards 1.2539(Higher BB).On the downside, immediate support is seen at 1.2432(21DMA), a break below could take the pair towards 1.2367(38.2%fib).
USD/CHF: The dollar was little changed against Swiss franc on Thursday as investors cautiously awaited the upcoming Federal Reserve policy meeting after the Bank of Canada raised rates to a 22-year high. The U.S. consumer inflation report for May, due on June 13, ahead of the Fed meeting, will provide investors with more clarity about the health of the world’s largest economy. The dollar index , which measures the currency against six major peers, was down 0.19% to 103.84. Immediate resistance can be seen at 09101 (38.2%fib), an upside break can trigger rise towards 09128(Higher BB).On the downside, immediate support is seen at 0.9082(5DMA), a break below could take the pair towards 0.9047( 50%fib).
USD/JPY: The U.S. dollar dipped against Japanese yen on Thursday as investors awaited cues from the U.S. Federal Reserve after the Bank of Canada hiked its rates to a 22-year high. Surprise rate hikes by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) this week have fanned fears of another rate increase by the U.S. Federal Reserve in July even if the central bank pauses next week. The dollar was down 0.29% against Japan's yen at 139.71 yen per dollar .Strong resistance can be seen at 140.26(23.6%fib) an upside break can trigger rise towards 140.84(May 30th high).On the downside, immediate support is seen 139.76(5DMA), a break below could take the pair towards 138.68(38.2%fib)
European shares dipped on Thursday as rate-sensitive technology shares slipped on expectations of further interest rate hikes by major central banks, although gains in banks helped limit losses.
At (GMT 11:57),UK's benchmark FTSE 100 was last trading up at 0.03 percent, Germany's Dax was up by 0.28 percent, France’s CAC was trading up by 0.41 percent.
Gold rose on Thursday on a slight pullback in the dollar but investor caution surrounding the Federal Reserve’s interest rate strategy and other economic cues that may influence it kept bullion hemmed in a relatively tight range.
Spot gold rose 0.4% to $1,946.58 per ounce by 0937 GMT after shedding 1% in the previous session. U.S. gold futures rose 0.2% to $1,961.50.
Oil rose on Thursday as tighter supply resulting from Saudi Arabia's pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown
.Brent crude rose 56 cents, or 0.7%, to $77.51 a barrel by 1035 GMT. U.S. West Texas Intermediate crude gained 70 cents, or 1%, to $73.23.