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America’s Roundup: Dollar bounces from two-day slide,Wall Street plunges, Gold gains, Oil rebounds as new Iran sanctions fuel more supply concerns-June 17th,2022

Market Roundup

•US Jun Philly Fed Business Conditions  -6.8,2.5 previous

•US Initial Jobless Claims 229K,215K forecast,229K previous

•US Continuing Jobless Claims 1,312K, 1,302K forecast,1,306K previous

•US Jobless Claims 4-Week Avg  218.50K,215.00K previous

•Canada Apr Wholesale Sales (MoM)  -0.5%, 0.2% forecast,0.3% previous

•US Jun Philly Fed Employment  28.1 ,25.5 previous

•US May Building Permits (MoM)  -7.0%,-3.0% previous

•US Jun Philadelphia Fed Manufacturing Index -3.3, 5.5 forecast, 2.6 previous

•US May Housing Starts  1.549M,1.701M forecast, 1.724M

•US May Building Permits 1.695M,  1.785M forecast, 1.823M previous

•US Housing Starts (MoM)  -14.4%,-0.2% previous

•15:30 US 8-Week Bill Auction 1.470%, 1.150% previous

•15:30 US 4-Week Bill Auction 1.180%, 1.040% previous

Looking Ahead Economic Data

• 02:45 Japan BoJ Interest Rate Decision               -0.10% previous

Looking Ahead - Events, Other Releases (GMT)

• 02:45 Japan BoJ Monetary Policy Statement

Currency Summaries

EUR/USD: The euro strengthened against dollar on Thursday as the single currency garnered support from the European Central Bank’s decision mid-week on fresh support to contain borrowing costs among southern nations. The SNB hike helped put fresh pressure on European bond prices as investors ramped up bets for ECB rate hikes. Germany's 10-year yield, the benchmark for the bloc, jumped as much as 26 basis points at one point.Immediate resistance can be seen at 1.0499(38.2%fib),an upside break can trigger rise towards 1.0587(50%fib).On the downside, immediate support is seen at 1.0395(23.6%fib), a break below could take the pair towards 1.0361(Lower BB).

GBP/USD: Sterling hit one week-highs against the dollar and euro on Thursday, recouping earlier losses, amid broad weakness in the greenback, as investors bet on a more aggressive tightening by the Bank of England (BoE) over the next few meetings, in line with recent moves from other major central banks. Sterling posted its largest daily percentage gain versus the dollar since October 2020. Against the euro, the pound had its best day since early May. The BoE on Thursday raised interest rates by a quarter of a percentage point, confounding forecasts by some market participants who were looking for a bigger hike to fight soaring inflation. Immediate resistance can be seen at 1.2358(38.2%fib),an upside break can trigger rise towards 1.2414 (Daily high).On the downside, immediate support is seen at 1.2215(5DMA), a break below could take the pair towards 1.2119(23.6%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as oil prices fell and interest rate hikes by central banks around the world added to investor worries that tighter monetary policy could derail economic growth. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. Oil fell 2.1% to $112.91 a barrel, while the Canadian dollar was trading 0.4% lower at 1.2944 to the greenback .It traded in a range of 1.2862 to 1.2958, after touching on Wednesday its lowest intraday level in more than one month at 1.2995. Immediate resistance can be seen at 1.2989 (23.6%fib), an upside break can trigger rise towards 1.3012 (Higher BB).On the downside, immediate support is seen at 1.2924 (5 DMA), a break below could take the pair towards 1.2871 (38.2%fib).

USD/JPY: The dollar dipped against Japanese yen on Thursday ahead of Bank of Japan rate decision . The Bank of Japan is likely to maintain ultra-low interest rates in its policy meeting on Friday and stress its resolve to support a fragile economy with massive stimulus, a move that may further weaken the yen by highlighting a policy divergence with the rest of the world. The dollar clawed its way back from a one-week low against major peers, following a two-day slide after the Federal Reserve’s mid-week rate increase that, although the biggest since 1995, didn’t exceed market expectations. The dollar index, which measures the currency against six peers including the yen, rose 0.16% to 104.05, slipping to the lowest since June 10 at 103.41 overnight. Strong resistance can be seen at 134.02 (5DMA), an upside break can trigger rise towards 135.34(23.6%fib).On the downside, immediate support is seen at 131.78 (38.2%fib), a break below could take the pair towards 131.83(50%fib).

Equities Recap

European stocks fell sharply on Thursday as fears mounted that the Fed might trigger a recession sometime in the next year with its aggressive rate action.

UK's benchmark FTSE 100 closed down by  3.14 percent, Germany's Dax ended down by 3.31 percent, France’s CAC finished the day down by 2.39 percent.                

U.S. stock indexes closed sharply lower on Thursday in a broad sell-off as recession fears grew following moves by central banks around the globe to stamp out rising inflation after the Federal Reserve's largest rate hike since 1994.

Dow Jones closed down  by 2.42% percent, S&P 500 closed down by 3.25 % percent, Nasdaq settled down  by 4.08%      percent.

Treasuries Recap

U.S. Treasury yields fell on Thursday as fears of a recession dented risk appetite and boosted demand for safe haven U.S. debt, a day after the Federal Reserve hiked its benchmark interest rate by the most since 1994.

Benchmark 10-year yields dipped to 3.307%, after reaching 3.498% on Tuesday, the highest since April 2011.  

Commodities Recap

Gold rose 1% in volatile trade on Thursday as the dollar pulled back sharply on the U.S. central bank’s aggressive policy outlook, bringing some of the safe-haven lure back to the metal.

Spot gold was last up 0.9% at $1,849.68 per ounce by 1:54 p.m. ET (1754 GMT). U.S. gold futures settled up 1.7% at $1,849.90.

Oil prices rose on Thursday in topsy-turvy trading after the United States announced new sanctions on Iran, and as energy markets stayed focused on supply concerns that have sent prices soaring this year.

Brent crude futures settled at $119.81, up $1.30, or 1.1%, while West Texas Intermediate (WTI) crude futures ended up $2.27, or 2%, at $117.58.

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