Market Roundup
•US Initial Jobless Claims 215K, 220K forecast,222K previous
•US Continuing Jobless Claims 1,794K,1,794K previous
•US Jobless Claims 4-Week Avg. 219.75K, 217.75K previous
•US Building Permits 1.440M, 1.440M forecast,1.467M previous
•US Building Permits (MoM) -3.0%, -3.0% forecast,-3.7% previous
•US May Manufacturing PMI 50.9,50.0 forecast,50.0 previous
•US May Services PMI 54.8, 51.2 forecast,51.3 previous
•US May S&P Global Composite PMI 54.4, 51.1 forecast,51.3 previous
•US Apr New Home Sales (MoM) -4.7%,8.8% previous
•US Natural Gas Storage78B, 84B forecast, 70B previous
Looking Ahead Economic Data(GMT)
No Data Ahead
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped on Thursday after data showed US business activity expanded in May . U.S. business activity accelerated to the highest level in just over two years in May, but manufacturers reported a surge in prices for a range of inputs, suggesting that goods inflation could pick up in the months ahead.S&P Global said on Thursday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, jumped to 54.4 this month. That was the highest level since April 2022 and followed a final reading of 51.3 in April.A reading above 50 indicates expansion in the private sector. Economists polled had forecast the index little changed at 51.1. The increase was driven by the services sector, with the flash PMI rising to 54.8 from 51.3 in April. Immediate resistance can be seen at 1.0876(23.6%fib), an upside break can trigger rise towards 1.0908(Higher BB).On the downside, immediate support is seen at 1.0793 (38.2% fib), a break below could take the pair towards 1.0761(May 14th low).
GBP/USD: The pound eased slightly on Thursday near multi-month highs a day after British Prime Minister Rishi Sunak called a national election and data showed inflation did not slow as much as expected in April. Sterling eased at $1.2693, having touched a two month high of $1.2761 the day before after data showed British consumer prices rose by 2.3% in annual terms in April, nearing the Bank of England's 2% target but slowing less than markets had expected.The British currency reached its strongest in three months versus the euro in early trade but then weakened after euro zone business activity data helped the common currency to rise 0.2% to 85.26 pence. Immediate resistance can be seen at 1.2765(23.6%fib), an upside break can trigger rise towards 1.2794(Higher BB).On the downside, immediate support is seen at 1.2674(38.2% fib), a break below could take the pair towards 1.2603(50% fib).
USD/CAD: The Canadian dollar weakened to a two-week low against its U.S. counterpart on Thursday as oil prices fell and investors eyed potential policy divergence between the Bank of Canada and the Federal Reserve. Businesses across the globe broadly enjoyed an improved performance this month with activity picking up in the United States and across parts of Asia and Europe, surveys showed, giving central banks, including the Fed, room to potentially defer cutting interest rates.On Tuesday, Canadian data showed the annual rate of inflation falling to a three-year low of 2.7%, leading to increased bets that the BoC would begin an interest rate cutting cycle at its next policy announcement on June 5.The loonie was trading 0.3% lower at 1.3730 to the U.S. dollar, or 72.83 U.S. cents, its weakest level since May 9. .Immediate resistance can be seen at 1.3254 (38.2% fib), an upside break can trigger rise towards 1.3319 (50%fib).On the downside, immediate support is seen at 1.3174(23.6% fib), a break below could take the pair towards 1.3134(Lower BB).
USD/JPY: The U.S. dollar strengthened against yen on Thursday as greenback was helped by surprisingly strong U.S. economic indicator . May figures showed U.S. business activity accelerated to the highest level in just over two years and manufacturers reported a surge in prices for a range of inputs, prompting a pullback in U.S. interest rate cut expectations. The U.S. dollar index , which measures the dollar against a basket of six major peers, was last up nearly 0.6% on the week to 105.07, on course for its largest one-week rise since mid-April.Strong resistance can be seen at 157.60 (23.6%fib), an upside break can trigger rise towards 158.11(Higher BB).On the downside, immediate support is seen at 156.25(Daily low), a break below could take the pair towards 155.55(38.2%fib).
Equities Recap
European stocks closed flat on Thursday as signs of improving economic activity prompted investors to scale back expectations for interest rate cuts this year and tempered optimism around strong forecasts from AI darling Nvidia.
UK's benchmark FTSE 100 closed down by 0.36 percent, Germany's Dax closed up by 0.03 percent, France’s CAC closed up by 0.13 percent.
U.S. stocks ended lower on Thursday, even as a strong revenue forecast for Nvidia fueled a surge in its shares, but that was overshadowed by economic data showing inflation was still a concern that could delay any Federal Reserve rate cuts.
Dow Jones was down by 1.53%percent, S&P 500 was down by 0.74% percent, Nasdaq was down by 0.39% percent.
Commodities Recap
Gold fell to more than a week's low on Thursday, extending its decline for a third straight session, as investors grew apprehensive over U.S. rate cut timings and on strength in U.S. business activity.
Spot gold fell 1.8% to $2,336.39 per ounce, its lowest since May 13, as of 1748 GMT. U.S. gold futures settled 2.3% lower to $2,337.20 per ounce.
Oil prices fell for a fourth consecutive session on Thursday and settled at multi-month lows as the prospect of higher-for-longer U.S. interest rates raised worries around demand growth in the world's biggest oil market.
Brent crude futures settled lower by 54 cents, or 0.7%, at $81.36 a barrel, the lowest since January. U.S. West Texas Intermediate (WTI) crude futures fell 70 cents, or 0.9%, to $76.87 a barrel, a three-month low.
