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Europe Roundup: Sterling near one-week low vs dollar, European stocks fall, Gold edges lower, Oil prices rise for fourth day on supply worries-June 29th,2022

Market Roundup

•Sweden May Household Lending Growth (YoY)  6.5%,6.8% previous        

• Sweden Jun Manufacturing Confidence  120.6, 125.5 previous

•Spanish CPI (YoY)10.2%, 9.0% forecast, 8.7% previous

•Spanish Jun HICP (YoY)  10.0%, 8.7% forecast, 8.5% previous

•EU June Consumer Confidence -23.6 ,-23.6 forecast, -23.6 previous

•EU June Services Sentiment  14.8,12.5 forecast,14.0 previous

•EU June Industrial Sentiment  7.4,4.6 forecast, 6.3 previous

•EU June Business and Consumer Survey  104.0,103.0 forecast, 105.0 previous

•Belgium Jun CPI (YoY)  9.65%, 8.97% previous

Looking Ahead Economic Data(GMT)

•US 12:30 US Core PCE Prices (Q1) 5.10% forecast, 5.10% previous

•US 12:30 US Corporate Profits (QoQ) (Q1) -4.3% previous

•US 12:30 US GDP Price Index (QoQ) (Q1) 8.1% forecast, 8.1% previous

•US 12:30 US GDP (QoQ) (Q1) -1.5% forecast, -1.5% previous

•US 12:30  US GDP Sales (Q1) -0.5% forecast, -0.4% previous

•US 14:30 Cushing Crude Oil Inventories -0.826M previous

•US 14:30 US Crude Oil Inventories -0.569M, 1.956M previous

Looking Ahead - Events, Other Releases (GMT

•13:00 ECB President Lagarde Speaks                                                                          

•13:00 US  Fed Chair Powell Speaks

•13:30 UK BoE Gov Bailey Speaks                                                                                

•15:00 EU ECB President Lagarde Speaks

•17:05 US FOMC Member Bullard Speaks            


EUR/USD: The euro steadied on Wednesday after falling to a six-day low, reacting to the release of conflicting inflation data in Germany and Spain that created a difficult backdrop for European Central Bank policymaking.The European common single currency decline in early London trading after data showed June prices in the German state of North Rhine–Westphalia (NRW) had been 0.1% lower than in May.But the euro trimmed those losses, flattening on the day, after data showed Spanish 12-month inflation had risen to 10.2% in June, up from 8.7% in May and surpassing 10% for the first time since April 1985. Immediate resistance can be seen at 1.0506(20DMA),an upside break can trigger rise towards 1.0621(38.2%fib).On the downside, immediate support is seen at 1.0476(23.6%fib), a break below could take the pair towards 1.0385(Lower BB).

GBP/USD: Sterling dipped near one-week lows against the dollar on Wednesday as concerns about slowing economic growth and political risks lingered a day after Scotland proposed an independence referendum. Investors will also pay close attention to remarks from Bank of England governor Andrew Bailey for any hints about plans to hike interest rates at its August meeting. Bailey is due to speak at a forum of central bankers in Sintra, Portugal. The BoE faces the difficult task of taming price pressures, which surged to a 40-year high of 9.1% in May, without further damaging the economy through policy tightening. Immediate resistance can be seen at 1.2232(5DMA),an upside break can trigger rise towards 1.2336(38.2%fib).On the downside, immediate support is seen at 1.2150(23.6%fib), a break below could take the pair towards 1.2107(June 13th low).

 USD/CHF: The dollar declined against the Swiss franc on Wednesday after a steep drop in U.S. consumer confidence stoked worries about an economic slowdown at a time when the U.S. Fed is rushing to raise interest rates to corral inflation. A succession of weak data releases in Europe and the United States has not prevented central bankers from doubling down on hawkish rhetoric. More is likely later on Wednesday when the heads of the European Central Bank, U.S. Federal Reserve and Bank of England speak at a central banking forum. Immediate resistance can be seen at 0.9586(5DMA), an upside break can trigger rise towards 0.9641 (50% fib).On the downside, immediate support is seen at 0.9510  (61.8% fib), a break below could take the pair towards 0.9416 (Lower BB ).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday concerns over inflation and the possibility of recession, which also boosted the safe-haven dollar. The Japanese yen stood at 136.03 per dollar, not far off last week’s 24-year low of 136.7.The yen has struggled as the Bank of Japan keeps monetary policy loose even as other major banks tighten, a point reiterated by BOJ governor Haruhiko Kuroda on Wednesday. Strong resistance can be seen at 136.42 (Daily high), an upside break can trigger rise towards 137.00(Psychological level).On the downside, immediate support is seen at 134.90(14DMA), a break below could take the pair towards 132.92(38.2%fib).

Equities Recap

European shares fell on Wednesday, as fears about a global recession overshadowed recent optimism about China reopening after months-long lockdowns, with investors looking ahead to a meeting of major central bank heads for clues on policy outlook.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading up at 0.01 percent, Germany's Dax was down by 1.19 percent, France’s CAC finished was down by 0.66 percent.

Commodities Recap

Gold fell in range-bound trading on Wednesday as prospects of elevated interest rates continued to override its safe-haven appeal to some extent despite looming recession risks.

Spot gold fell 0.2% to $1,817.00 per ounce by 0920 GMT, holding a tight range between $1,814.30 - $1,822.76. U.S. gold futures were down 0.2% to $1,817.60.

Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.

Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87%.

U.S. West Texas Intermediate (WTI) crude futures were up $1.20, or 1.1%, to $112.96 a barrel.

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