Market Roundup
•Oil prices fall more than 9% so far this week
•ECB raises interest rates by 25 bps in inflation fight
•EU May ECB Interest Rate Decision 3.75%,3.75% forecast, 3.50% previous
•EU May Deposit Facility Rate 3.25%, 3.25% forecast,3.00% previous
•US Mar Trade Balance -64.20B,-63.30B forecast, -70.50B previous
•US Jobless Claims 4-Week Avg. 239.25K,217.09K forecast,236.00K previous
•US Continuing Jobless Claims1,805K, 1,865K forecast,1,858K previous
•US Initial Jobless Claims 242K ,240K forecast,230K previous
•US Imports 320.40B,321.70B previous
• US Exports 256.20B, 251.15B previous
• US Unit Labor Costs (QoQ) (Q1) 6.3%,5.5% forecast,3.2% previous
• US Nonfarm Productivity (QoQ) (Q1) -2.7%,-1.8% forecast,1.7% previous
• Canada Mar Imports 62.59B , 64.61B previous
• Canada Mar Trade Balance 0.97B, 0.20B forecast,0.42B previous
• Canada Mar Exports 63.56B ,65.03B previous
• Canada Apr Ivey PMI 56.8, 59.0 forecast,58.2 previous
• US Natural Gas Storage 54B,86B forecast,79B previous
• US4-Week Bill Auction 5.840%, 3.830% previous
• US8-Week Bill Auction 5.400%,4.940% previous
Looking Ahead Economic Data (GMT)
• 01:30 Australia Home Loans (MoM) -1.0% forecast, -1.2% previous
• 01:30 Australia Invest Housing Finance (MoM) -0.5% previous
•01:45 China Apr Caixin Services PMI 57.3 forecast, 57.8 previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Australia RBA Monetary Policy Statement
Currency Summaries
EUR/USD: The euro declined on Thursday after the European Central Bank eased the pace of its rate hikes a day after the U.S. Federal Reserve signalled it was done with its tightening programme. The European Central Bank slowed the pace of its interest rate increases but signalled more tightening to come in what markets expect to be the final stage of its fight against inflation.All ECB policymakers but one, Austria's Robert Holzmann, backed the 25-basis-point increase in the ECB's main deposit rate to 3.25%, which follows an unprecedented series of 75 and 50 basis point increases since last July. Immediate resistance can be seen at 1.1078(23.6%fib), an upside break can trigger rise towards 1.1113(Higher BB).On the downside, immediate support is seen at 1.1010 (5DMA), a break below could take the pair towards 1.0992(38.2%fib).
GBP/USD: The British pound was steady against the dollar on Thursday having hit an 11-month high overnight after the Federal Reserve raised rates but signalled an end to its tightening cycle is in sight.The U.S. central bank raised its benchmark rate by a quarter point but dropped from its policy statement language that said it "anticipates" further rate increases would be needed, sending the dollar lower against other major currencies, including the pound. Sterling was steady against the dollar at $1.2567, having hit its highest level since June last year at $1.2593 overnight. Immediate resistance can be seen at 1.2588 (23.6%fib), an upside break can trigger rise towards 1.2609(Higher BB).On the downside, immediate support is seen at 1.2531(5DMA), a break below could take the pair towards 1.2499(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a near two-week high against its U.S. counterpart on Thursday as oil rebounded from its lowest level of the day, putting pressure on investors that have placed bearish bets on the currency. The price of oil, one of Canada’s major exports, settled 0.1% lower at $68.56 a barrel but clawed back much of its earlier decline. It follows sharp losses in the previous two days.The loonie was trading 0.6% higher at 1.3535 to the greenback, or 73.88 U.S. cents, after touching its strongest since April 21 at 1.3520.Immediate resistance can be seen at 1.3582 (38.2% fib), an upside break can trigger rise towards 1.3655 (23.6% fib).On the downside, immediate support is seen at 1.3522(50% fib), a break below could take the pair towards 1.3493 (21DMA).
USD/JPY: The dollar dipped against Japan's yen on Thursday as uncertainty surrounding the U.S. debt ceiling and other economic headwinds increased demand for safe haven yen . Republicans are pressing Democratic President Joe Biden to agree to spending cuts as a condition for raising the United States' self-imposed $31.4 trillion debt ceiling. Biden and his fellow Democrats insist Congress should raise the cap without conditions. The standoff spooked investors on Thursday . The Japanese yen strengthened 0.39% versus the greenback at 134.13 per dollar. Strong resistance can be seen at 135.95(23.6%fib), an upside break can trigger rise towards 136.53(Higher BB).On the downside, immediate support is seen at 134.00 (Psychological level), a break below could take the pair towards 133.45(5DMA)
Equities Recap
European shares ended Thursday lower after the European Central Bank eased the pace of its interest rate hikes but signalled more tightening to come, while Swedish builder Skanska tumbled as its earnings were hit by soaring inflation and high rates.
UK's benchmark FTSE 100 closed down by 1.10 percent, Germany's Dax ended down by 0.51 percent, France’s CAC finished the day down by 0.85percent.
Wall Street ended lower on Thursday after PacWest's move to explore strategic options deepened fears about the health of U.S. lenders and hit shares of regional banks as well as JPMorgan Chase (JPM.N), Wells Fargo & Co (WFC.N) and other major financial players.
Dow Jones closed down by 0.86% percent, S&P 500 closed down by 0.72% percent, Nasdaq settled down by 0.49% percent.
Commodities Recap
Gold made another run toward record highs on Thursday as U.S. banking concerns accelerated a flight to the safe-haven asset and sustained its stellar rally driven by bets for a pause in U.S. rate hikes.
Spot gold was up 0.3% at $2,045.79 per ounce by 1:40 p.m. EDT (1740 GMT) after climbing earlier to $2,072.19, shy of a record high of $2,072.49.U.S. gold futures settled 0.9% higher at $2,055.70.
Oil prices were stable after the European Central Bank (ECB) decided on Thursday to slow interest rate hikes, but were unable to claw back much of this week's more than 9% decline as demand concerns in major consuming countries weighed.
Brent futures were up 9 cents, or 0.12%, to $72.42 a barrel at 1338 GMT. U.S. West Texas Intermediate (WTI) crude fell 13 cents, or 0.19%, to $68.47.
