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  |   Market Roundups


Europe Roundup: Euro dips against dollar ahead of US GDP data, European shares mixed, Gold hits a three-week high, Oil extends gains as risk appetite improves, U.S. inventories fall-July 28th,2022

Market Roundup

•Sweden GDP (YoY) (Q2) 4.2%,3.0% previous

•Sweden Jun Retail Sales (MoM) -1.2% , -0.6% previous

•French Jun PPI (MoM)  1.3%,-0.1% previous

•Spanish Unemployment Rate (Q2) 12.48%,13.00% forecast, 13.65% previous

•Italian May Industrial Sales (MoM)  1.40%, 2.70% previous

•Italian May Industrial Sales (YoY) 23.60% ,22.00% previous

•EU Jul Consumer Confidence -27.0,-27.0 forecast,-27.0 previous

•EU Jul Services Sentiment 10.7, 13.5 forecast, 14.8 previous

Looking Ahead - Economic Data (GMT)

•12:00 German Jul CPI (MoM)  0.6% forecast, 0.1% previous

•12:00 German Jul HICP (YoY)  8.1% forecast, 8.2% previous

•12:30 US Real Consumer Spending (Q2) 1.8% previous

•12:30 US  Continuing Jobless Claims  1,380K forecast, 1,384K previous

•12:30 US  Jobless Claims 4-Week Avg  240.50K previous

•12:30  US Initial Jobless Claims 253K forecast, 251K previous

•12:30  US GDP Price Index (QoQ) (Q2)  7.9% forecast, 8.3% previous

•12:30  US GDP (QoQ) (Q2) 0.5% forecast, -1.6% previous

• 12:30 US  PCE Prices (Q2) 7.1% previous

•12:30 US  Core PCE Prices (Q2) 4.50% forecast, 5.20% previous

•12:30 US GDP Sales (Q2) -1.2% previous

•14:30 US Natural Gas Storage 22B forecast, 32B previous

•15:00 US Jul  KC Fed Composite Index  12 previous

•15:00 US  Jul KC Fed Manufacturing Index  -1 previous

Looking Ahead - Economic events and other releases (GMT)

•12:30 US Fed Chair Yellen Speaks


EUR/USD: The euro declined against dollar on Thursday as markets ramped up bets on a softening in the pace of rate hikes.While Federal Reserve Chair Jerome Powell delivered a widely expected 75 bps hike in interest rates, it altered its statement to cite some softening in recent data and dropped its commitment to guide markets on the future trajectory of interest rates. The dollar edged 0.05% lower to 106.31 after dropping 0.59% overnight and just shy of 106.1 which would be the lowest since July 5. The euro was up 0.4% at $1.0163 . Immediate resistance can be seen at 1.0190(21DMA), an upside break can trigger rise towards 1.0230(38.2%fib).On the downside, immediate support is seen at 1.0117(23.6%fib), a break below could take the pair towards 1.0000(Psychological level).

GBP/USD: Sterling steadied against the dollar as the more positive mood on broader markets encouraged investors back into currencies considered riskier during uncertainty. Analysts say with the conclusion of the Conservative Party leadership contest that will decide the next British prime minister not due until September and investors waiting for the Bank of England monetary policy meeting next Thursday, there have been few domestic drivers for sterling in recent weeks. Sterling has benefited from a pullback in the dollar and a euro still struggling under the weight of imminent shortages of natural gas and a weakening economy.  Immediate resistance can be seen at 1.2193(38.2%fib), an upside break can trigger rise towards 1.2339(50%fib).On the downside, immediate support is seen at 1.2018(23.6%fib),a break below could take the pair towards 1.1988(21DMA).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors digested the implications of the Federal Reserve's latest comments on the future path of interest rates. Traders interpreted the Fed's decision to drop its commitment to guide markets on the future rate trajectory after a widely expected 75 bps hike as a sign that policymakers may soften their stance, pushing the dollar lower . Markets have already ramped up bets of a softening in future U.S. interest rate hikes, with futures now assigning a 65% probability of a 50 bps hike in September from 50% on Wednesday, according to CME .Immediate resistance can be seen at 0.9669(50%fib), an upside break can trigger rise towards 0.9693(21DMA).On the downside, immediate support is seen at 0.9571(38.2%fib), a break below could take the pair towards 0.9507 (Lower BB).

USD/JPY: The dollar dipped against the Japanese yen on Thursday as investors scented a possible slowdown in the pace of U.S. rate hikes that   sent the dollar to a three-week low on the yen . The U.S. Federal Reserve had surprised no one by lifting rates 75 basis points (bps) to 2.25%-2.50% on Wednesday, but did alter its statement to cite some softening in recent data.Fed Chair Jerome Powell sounded suitably hawkish on curbing inflation in his news conference, but also dropped guidance on the size of the next rate rise and noted that  at some point  it would be appropriate to slow down. The greenback dipped as far as 136.69 yen, after hitting daily high at 137.13.Strong resistance can be seen at 136.84 (21DMA), an upside break can trigger rise towards 137.71(23.6%fib).On the downside, immediate support is seen at 135.65 (38.2%fib), a break below could take the pair towards 134.14 (Lower BB).

Equities Recap

European stocks advanced to hit a seven-week high on Thursday as investors reacted to a slew of earnings updates and less-hawkish-than-feared messaging from Fed Chair Jerome Powell.

At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.15% percent, Germany's Dax was down by 0.04% percent, France’s CAC was up by 0.14 %percent.

Commodities Recap

Gold prices hit a near three-week high on Thursday after U.S. Federal Reserve chair Jerome Powell signalled the central bank could slow the pace of rate hikes in coming months, which weighed on the dollar and Treasury yields.

Spot gold rose 0.7% to $1,745.20 per ounce by 0912 GMT, its highest since July 8.U.S. gold futures rose 1.4% to $1,743.70.

Oil rose more than $2 a barrel on Thursday, extending gains from the previous session, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices.

Brent crude futures for September rose $2.09, or 1.96%, to $108.71 a barrel by 1201 GMT, after gaining $2.22 on Wednesday.

U.S. West Texas Intermediate crude (WTI) was at $99.62 a barrel, up $2.36, or 2.43%, after rising $2.28 in the previous session.

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