Market Roundup
•US Continuing Jobless Claims 3,751K,3,640K, 3,655K previous
•US Jobless Claims 4-Week Avg 504.75K, 534.00K previous
•US Initial Jobless Claims 444K, 450K forecast, 473K previous
•Canada ADP Nonfarm Employment Change 351.3K,634.8K previous
•Canada Apr New Housing Price Index (MoM) 1.9%,1.1% previous
•US May Philly Fed CAPEX Index 37.40,36.70 previous
•US May Philadelphia Fed Manufacturing Index 31.5,43.0 forecast, 50.2 previous
•US May Philly Fed Prices Paid 76.80,69.10 previous
•US May Philly Fed Employment 19.3, 30.8 previous
•US Philly Fed New Orders 32.5 , 36.0 previous
•US Apr Leading Index (MoM) 1.6%, 1.4% forecast, 1.3% previous
Looking Ahead - Economic Data (GMT)
•23:00 Australia Services PMI 58.8 previous
•23:00 Australia Manufacturing PMI 59.7 previous
•23:30 Japan Apr CPI, n.s.a (MoM) 0.2% previous
•23:30 Japan Apr National Core CPI (YoY) -0.2% forecast, -0.1% previous
•23:30 Japan National CPI (MoM) 0.2% previous
•00:30 Japan May Manufacturing PMI 53.6 previous
•00:30 Japan Services PMI 49.5 previous
•00:30 Japan Credit Card Spending (YoY) 2.2% previous
•01:30 Australia Apr Retail Sales (MoM) 1.3% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Thursday after a weaker-than-expected U.S. business activity reading. The Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 from 50.2 in April, its highest pace in nearly half a century. The reading was shy of economists’ expectations of 43.0. The dollar index fell 0.503%, with the euro up 0.44% to $1.2225. Immediate resistance can be seen at 1.2230(23.6%fib), an upside break can trigger rise towards 1.2300 (Psychological level).On the downside, immediate support is seen at 1.2159 (38.2%fib), a break below could take the pair towards 1.2141 (11DMA).
GBP/USD: Sterling edged up against the dollar on Thursday, trading above the $1.41 mark as analysts remained positive on the currency’s prospects, although some warned its gains so far could prompt a bout of profit-taking. The pound is the second-best performer among the G10 group of currencies year-to-date, up 3.5% against the U.S. dollar. Bets on a faster economic rebound in Britain driven by its rapid vaccination programme have given the currency a boost, as has the Bank of England’s tapering of its asset purchases. The most recent data shows an increase in long positions, meaning the market bets on more gains in the pound. Immediate resistance can be seen at 1.4215 (23.6%fib), an upside break can trigger rise towards 1.4246 (Higher BB).On the downside, immediate support is seen at 1.4161 (5DMA), a break below could take the pair towards 1.4099 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as the greenback broadly declined and the Bank of Canada fretted about imbalances in the country's red-hot housing market. On Thursday, the BoC said Canada's housing market and high household debt levels had left the economy more vulnerable to economic shocks, but made clear it would not raise interest rates to cool the frenzy. The loonie , which has benefited from surging commodity prices in recent months, was trading 0.7% higher at 1.2052 to the greenback, moving back in reach of Wednesday's three-year high at 1.2013. Immediate resistance can be seen at 1.2075 (5DMA), an upside break can trigger rise towards 1.2115(38.2%fib).On the downside, immediate support is seen at 1.2015 (23.6% fib), a break below could take the pair towards 1.1962 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Thursday as greenback eking out gains in the face of renewed concerns about the pace of the United States' central bank policy tightening. Fed minutes published on Wednesday said a number of officials thought it might be appropriate at some point" to begin discussing a plan for adjusting the pace of asset purchases, in comments that surprised some investors. The Fed meets next in June and markets will be closely eyeing the outcome of that meeting for changes to growth, inflation and unemployment forecasts and whether rising consumer prices and a recovering U.S. economy will change its outlook. Strong resistance can be seen at 109.29(38.2%fib), an upside break can trigger rise towards 109.88 (23.6%fib).On the downside, immediate support is seen at 108.80(50%fib), a break below could take the pair towards 108.33(61.8%fib).
Equities Recap
European stocks rose on Thursday after one of the worst selloffs this year as strong earnings and merger talks in the chip sector helped investors look past inflation worries.
UK's benchmark FTSE 100 closed up by 1.00 percent, Germany's Dax ended up by 1.70 percent, France’s CAC finished the day up by 1.29 percent.
Wall Street’s main indexes rebounded on Thursday after a three-day slide, buoyed by gains in technology stocks as the smallest weekly jobless claims since the start of a pandemic-driven recession lifted the mood.
Dow Jones closed up by 0.55 percent, S&P 500 ended up by 1.06 percent, Nasdaq settled up by 1.77 % percent.
Treasuries Recap
Yields on nominal U.S. Treasury debt and inflation-linked securities fell on Thursday after factory activity in the U.S. mid-Atlantic region slowed in May from a record pace, casting doubt on how fast the economy can continue to roar.
The yield on benchmark 10-year Treasury notes fell 5.1 basis points to 1.632%.
Commodities Recap
Gold hovered on Thursday close to a more than four-month peak it scaled in the previous session, fueled by a dip in the dollar and U.S. yields as investors shrugged off the Federal Reserve’s hints on possible tapering of economic support measures.
Spot gold rose 0.6% to $1,880.22 per ounce by 1:43 p.m. EDT (1743 GMT). U.S. gold futures settled little changed at $1,881.90.
Oil prices fell more than 2% on Thursday, marking a third day of losses, after diplomats said progress was made toward a deal to lift U.S. sanctions on Iran, which could boost crude supply.
Brent crude fell $1.55, or 2.3%, to settle at $65.11 a barrel. West Texas Intermediate crude ended $1.31, or 2.1%, lower at $62.05 a barrel. Both contracts fell around 3% in the previous session.
