Market Roundup
•German Apr PPI (MoM) 0.8%, 0.8% forecast, 0.9% previous
•German Apr PPI (YoY) 5.2%,5.1% forecast, 3.7% previous
•EU March Current Account n.s.a. 31.0B, 13.3B previous
•EU March Current Account 17.8B, 25.9B previous
•EU March Construction Output (MoM) 2.73%,-2.12% previous
•UK May CBI Industrial Trends Orders 17, -8 previous
•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) 1.4% forecast, 1.3% previous
Looking Ahead - Economic Data (GMT)
•14:00 US Apr Leading Index (MoM) 1.4% forecast, 1.3% previous
•14:30 US Natural Gas Storage 60B forecast, 71B previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 Canada BoC Gov Macklem Speaks
•15:00 Canada BoC Financial System Review
Fxbeat
EUR/USD: The euro edged higher on Thursday as dollar gained after the Federal Reserve hinted at a possible shift in policy.Minutes of the U.S. central bank’s April meeting released on Wednesday showed a number of policymakers thought if the U.S. economy continued its rapid progress, it would be appropriate “at some point” to begin discussing tapering the Fed’s bond purchases. The euro hopped 0.2% higher at $1.22 after having slipped 0.4% in the previous session and off a three-month high of $1.2245. 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 1.4198 (Higher BB), an upside break can trigger rise towards 1.4215 (23.6%fib).On the downside, immediate support is seen at 1.4103 (38.2%fib), a break below could take the pair towards 1.4075 (11DMA).
USD/CHF: The dollar declined against the Swiss franc on Thursday after minutes from the Federal Reserve's last policy meeting showed there was more talk of it tapering its bond purchases than investors had expected. The dollar's gains fizzled partially in London, trading with the greenback declining against most of its peers. Against a basket of its rivals , the dollar was down 0.25% at 90.00 but remained above a late-February low of 89.686 hit on Wednesday. At (GMT 12:30), greenback dipped 0.33% versus the Swiss franc to 0.9006. Immediate resistance can be seen at 0.9048 (38.2%fib), an upside break can trigger rise towards 0.9072 (21DMA).On the downside, immediate support is seen at 0.8966 (38.2%fib), a break below could take the pair towards 0.8939 (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.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.46 percent, Germany's Dax was up by 0.90 percent, France’s CAC finished was up by 0.84 percent.
Commodities Recap
Gold prices steadied on Thursday, as the dollar drifted lower and on fears of rising inflation, offsetting pressure for bullion from ‘tapering’ talks from the U.S. Federal Reserve.
Spot gold was little changed at $1,869.14 per ounce by 1219 GMT. U.S. gold futures fell 0.6% to $1,869.30.
Oil prices were on course for a third day of losses on Thursday after diplomats said progress was made towards a deal to lift sanctions on Iran, which could boost crude supply.
Brent crude was down 81 cents, or 1.2%, at $65.85 a barrel by 1152 GMT. West Texas Intermediate U.S. oil lost 77 cents, or 1.2%, to $62.59 a barrel. Both contracts fell around 3% in the previous session.
