Europe Roundup: Euro slides on weak business data, European shares falls, Gold gains, Oil resumes slide on demand worries after latest rate hikes-June 23rd,2023

Market Roundup

•UK May Core Retail Sales (MoM)  0.1%, -0.3%forecast,  0.7% previous

•UK May Retail Sales (MoM)  0.3%, -0.2% forecast, 0.5% previous

•UK May Core Retail Sales (YoY) -1.7%,  -2.1% forecast, -3.0% previous

•UK May Retail Sales (YoY)  -2.1%, -2.6%  forecast,-3.4% previous

•French Jun Services PMI  48.0, 52.0 forecast, 52.5 previous

•French Manufacturing PMI  45.5, 45.4 forecast, 45.7 previous

•German Jun Services PMI  54.1, 56.2     forecast, 57.2 previous

•German Jun Composite PMI  50.8, 53.5 forecast, 53.9 previous

•German Jun Manufacturing PMI  41.0, 43.5 forecast,    43.2 previous

•EU Jun S&P Global Composite PMI  50.3, 52.5 forecast, 52.8 previous

•EUJun Services PMI  52.4, 54.5 forecast, 55.1 previous

•EU Jun Manufacturing PMI  43.6, 44.8 forecast, 44.8 previous

•UK Manufacturing PMI 46.2, .8 forecast, 47.1 previous

•UK Services PMI 53.7, 54.8 forecast, 55.2 previous

•UK Composite PMI 52.8, 53.6 forecast, 54.0 previous

Looking Ahead Events And Other Releases(GMT)

•12:30   Canada Wholesale Sales (MoM) -1.4% previous

•12:30   Canada Manufacturing Sales (MoM) 0.3% previous

•13:45 US  Jun Manufacturing PMI  48.5 forecast, 48.4 previous

•13:45 US  Jun Services PMI   54.0 forecast, 54.9 previous

•13:45  US  Jun  S&P Global Composite PMI  54.3 previous

•17:00   US  Jun  U.S. Baker Hughes Oil Rig Count  552 previous

•17:00 U.S. Baker Hughes Total Rig Count 687 previous

Looking Ahead Events And Other Releases(GMT)

•No Events ahead

Currency forecast

EUR/USD: The euro fell against dollar on Friday after the bloc's business growth virtually stalled this month. The latest data showed euro zone business growth virtually stalled in June. A downturn in manufacturing deepened, while activity in the bloc's dominant services sector barely expanded, as overall demand fell for the first time since January. Business activity in Germany slowed in June as growth in the services sector decelerated and a decline in manufacturing worsened, while French business activity also contracted this month for the first time in five months. Immediate resistance can be seen at 1.0928(38.2%fib), an upside break can trigger rise towards 1.0960 (Daily high).On the downside, immediate support is seen at  1.0848(50%fib), a break below could take the pair towards 1.0777( (61.8%fib).

GBP/USD: The pound fell on Friday, heading for its largest weekly loss in over a month on rising expectations the UK economy could slip into recession after the Bank of England delivered an outsized rate hike in response to persistent inflation. The BoE on Thursday raised interest rates to their highest level since 2008, with a half-point hike that markets had anticipated, but that caught a number of investors off guard.Money markets show UK rates could peak as high as 6% by the end of this year and stay there for another six months, given how entrenched inflation is becoming in the broader economy. Sterling fell by as much as 0.5% on the day against the dollar to a low of $1.2685. Immediate resistance can be seen at 1.2843(23.6%fib), an upside break can trigger rise towards 1.2876 (Higher BB).On the downside, immediate support is seen at 1.2705(38.2%fib), a break below could take the pair towards 1.2603(50%fib).

USD/CHF: The dollar eased against the Swiss franc on Friday as a string of hawkish central bank surprises made investors nervous about the economic cost of taming inflation. Hawkish comments from global central banks, including the U.S. Federal Reserve, stoked fears that their aggressive monetary tightening could push economies into a deeper downturn. The safe-haven dollar was buoyed by the comments and was last trading up 0.62% at 103.2 against a basket of six currencies. Immediate resistance can be seen at 0.9022(38.2%fib), an upside break can trigger rise towards 0.9055 (15th June high).On the downside, immediate support is seen at 0.8956( 5DMA), a break below could take the pair towards 0.8903(23.6%fib).

USD/JPY: The U.S. dollar strengthened against Japanese yen on Friday as the dollar strengthened after U.S. Federal Reserve Chief Jerome Powell reiterated that more interest rate hikes were in the offing . The Japanese currency has come under renewed pressure as the Bank of Japan (BOJ) maintains an ultra-dovish stance.Data out on Friday showed that Japan's core consumer inflation exceeded forecasts in May and an index excluding fuel costs rose at the fastest annual pace in 42 years, putting pressure on the BOJ to phase out its massive stimulus. The dollar  was largely steady against yen at 143.05, languishing near an over seven-month high of 143.23 per dollar .Strong resistance can be seen at 143.85(23.6%fib) an upside break can trigger rise towards 144.00(Psychological level).On the downside, immediate support is seen 142.30(5DMA), a break below could take the pair towards 141.73(38.2%fib)

Equities Recap

European shares traded lower on Friday at the end of a central bank policy-packed week that reinforced views that higher interest rates could stay for longer, while shares of Siemens Energy plunged as it withdrew its annual profit outlook.

At (GMT 11:50 ),UK's benchmark FTSE 100 was last trading down at 0.47 percent, Germany's Dax was down  by 0.96 percent, France’s CAC finished was down by 0.44 percent.

Commodities Recap

Gold prices were en route to their worst week since early February on Friday as the dollar strengthened after U.S. Federal Reserve Chief Jerome Powell reiterated that more interest rate hikes were in the offing.

Spot gold was up 0.3% at $1,919.06 per ounce by 1130 GMT, yet stayed close to a three-month low hit earlier in the session. Prices are down 1.9% for the week.U.S. gold futures gained 0.3% to $1,929.20.

Oil dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate hike added to concern over economic growth that outweighed lower U.S. crude stocks and other signs of tighter supplies.

Brent crude slipped 91 cents, or 1.2%, to $73.23 a barrel by 1110 GMT, while U.S. West Texas Intermediate (WTI) crude was down $1.22, or 1.8%, at $68.29.