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America’s Roundup: Dollar on pace for biggest weekly rise since February, Wall Street dips, Oil prices fall on stronger dollar, demand fears

Market Roundup

•US Apr Import Price Index (MoM) 0.4%,0.3% forecast,-0.6% previous

•US Apr Export Price Index (MoM) 0.2%, 0.2% forecast,-0.3% previous

•UK NIESR Monthly GDP Tracker 0.1%,0.0% forecast,0.1% previous

•US May Michigan Inflation Expectations 4.5%, -4.8% ,4.6% previous

•US May Michigan 5-Year Inflation Expectations 3.2%,3.00% previous

•US May Michigan Consumer Sentiment 57.7, 63.0 forecast ,63.5 previous

•US May Michigan Current Conditions 64.5,67.0 forecast ,68.2 previous

• U.S. Baker Hughes Oil Rig Count 586, 588 previous

• U.S. Baker Hughes Total Rig Count 731, 748 previous

Looking Ahead Economic Data(GMT)

•No data ahead

Looking Ahead Events And Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro declined on Friday as investors shifted to safe havens after consumer sentiment data fueled concern about the U.S. debt ceiling and monetary policy.A University of Michigan survey on Friday showed May U.S. consumer sentiment slumped to a six-month low on worries that political dispute over raising the federal government's borrowing cap could trigger a recession. Consumers' long-term inflation expectations jumped to their highest since 2011. That could influence the Federal Reserve which signaled last week that it could pause its interest-rate hikes. Immediate resistance can be seen at 1.0950(5DMA), an upside break can trigger rise towards 1.0977(23.6%fib).On the downside, immediate support is seen at 1.0848 (Daily low ), a break below could take the pair towards 1.0818(Lower BB).

.GBP/USD: The pound dipped against dollar on Friday after data showed the British economy grew slightly in the first quarter of the year . An Office for National Statistics report showed Britain's economy grew sluggishly in early 2023, better than the shallow recession once expected, but an unexpectedly sharp drop in output in March underscored how fragile its recovery remains. The BoE upgraded its economic growth forecasts and said Britain would avoid a recession. Data on Friday showed growth expanded by 0.1% in the first quarter, but contracted in March, which analysts said showed the fragility of the recovery. Immediate resistance can be seen at 1.2576 (5DMA), an upside break can trigger rise towards 1.2616 (23.6%fib).On the downside, immediate support is seen at 1.2446(Daily low), a break below could take the pair towards 1.2439(May 1st low).

USD/CAD: The Canadian dollar weakened to an eight-day low against its U.S. counterpart on Friday as data showing rising inflation expectations in the United States revived investor worries about another interest rate hike by the Federal Reserve. The price of oil, one of Canada’s major exports, fell 1.3% to $69.98 a barrel as the market balanced supply fears against renewed economic concerns in the United States and China.The loonie was trading 0.5% lower at C$1.3560 to the greenback, or 73.75 U.S. cents, after touching its weakest level since May 4 at 1.3565. For the week, the currency declined 1.4%.Immediate resistance can be seen at 1.3585 (23.6%fib), an upside break can trigger rise towards 1.3620(May 4th high).On the downside, immediate support is seen at 1.3520(38.2%fib), a break below could take the pair towards 1.3471 (50%fib).

USD/JPY: The dollars strengthened against Japan's yen on Friday as greenback benefited from safe-haven flows amid growth concerns and banking worries The Congressional Budget Office warned on Friday that the United States faced a significant risk of defaulting on payment obligations within the first two weeks of June without raising the government's $31.4 trillion debt ceiling, adding that payment operations will remain uncertain throughout May.U.S. consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the borrowing cap could trigger a recession, the University of Michigan survey showed. Strong resistance can be seen at 135.93(23.6%fib) an upside break can trigger rise towards 136.66(Higher BB).On the downside, immediate support is seen at 134.97(5DMA), a break below could take the pair towards. 134.35(38.23%fib)

Equities Recap

European shares rose on Friday on upbeat results from luxury major Richemont and gains in energy stocks, while investors assessed inflation data from France and Spain for signals about the European Central Bank's plans on interest rate hikes.

UK's benchmark FTSE 100 closed up by 0.50 percent, Germany's Dax ended up by 0.31 percent, France’s CAC finished the day up by 0.45 percent.

U.S. stocks ended slightly lower on Friday, led by weaker megacap shares following their recent rally, as data showed U.S. consumer sentiment dropped to a six-month low.

Dow Jones closed down by 0.03 percent, S&P 500 ended down by 0.16 percent, Nasdaq finished the day up by 0.35 percent.

Treasuries Recap

U.S. Treasury yields rose on Friday after data showed that consumers' long-term inflation expectations increased to their highest reading since 2011 in May, while consumer sentiment slumped to a six-month low.

The yield on benchmark 10-year notes rose 6 basis points on the day to 3.461% and two-year yields rose 10 basis points to 4.002%.

Commodities Recap

Gold prices fell to a one-week low on Friday, and are on track for a weekly dip, weighed down by a stronger dollar and an uptick in U.S. bond yields.

Spot gold was 0.3% lower at $2,010.57 per ounce by 11:40 a.m. EDT (1540 GMT), after falling as much as 0.7% earlier in the session.U.S. gold futures fell 0.2% to $2,015.80.

Oil prices settled more than 1% lower on Friday, falling for the third consecutive week, as the market balanced supply fears against renewed economic concerns in the United States and China.

Brent crude futures settled down 81 cents, or 1.1%, to $74.17 while West Texas Intermediate (WTI) U.S. crude futures fell 83 cents, or 1.2%, to $70.04.

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