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  |   Market Roundups


America’s Roundup: Dollar index jumps to two-decade high as traders await Fed rate move , Wall Street slips, Gold eases, Oil prices settle down on fears of Fed and oil profit tax-June 15th,2022

• Canada New Motor Vehicle Sales (MoM) 143.2% ,144.6% previous

• Canada Apr Manufacturing Sales (MoM)  1.7%  ,1.6% forecast ,2.5% previous

• US May PPI (MoM ) 0.8% ,0.8% forecast , 0.5% previous

• US May PPI (YoY) 10.8%, 10.9%forecast ,11.0% previous

• US May Core PPI (MoM)  0.6% forecast , 0.4% previous

• US Redbook (YoY) 11.4% ,12.4% previous

• US  IBD/TIPP Economic Optimism 38.1  ,41.2 previous

Looking Ahead Economic Data(GMT)

• 23:50  Japan  Apr Core Machinery Orders (YoY)  5.3% forecast ,7.6% previous

•00:30 AU Jun Westpac Consumer Sentiment   -5.6% previous

•01:30 AU House Price Index (QoQ) (Q1) 1.4% forecast, 4.7% previous

•02:00   China May Chinese Industrial Production YTD (YoY)  4.0% previous

•02:00   China May Industrial Production (YoY)  -0.7% forecast,-2.9% previous

•02:00   China May  Fixed Asset Investment (YoY)  6.0% forecast,-6.8% previous

•02:00   China  Unemployment Rate 6.1% forecast, 6.1% previous

•04:30   Japan Tertiary Industry Activity Index (MoM)  1.3% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro held near recent lows against dollar on Tuesday as worries over aggressive U.S. interest rate hikes weighed in single currency. Investors remained on edge,  ahead of the outcome of a Federal Reserve policy meeting due late on Wednesday. Friday’s U.S. inflation data fuelled bets that the Fed would become more aggressive than indicated by its forward guidance. Focus is on the Fed's policy decision due on Wednesday, with many expecting a big three-quarter-percentage point rate hike following hot inflation print last week. On the data front, German investor sentiment rose slightly in June, roughly in line with market expectations, as financial market experts were less pessimistic about the economy, though it remained in negative territory due to numerous risks.. Immediate resistance can be seen at 1.0499(38.2%fib),an upside break can trigger rise towards 1.0587(50%fib).On the downside, immediate support is seen at 1.0395(23.6%fib), a break below could take the pair towards 1.0361(Lower BB).

GBP/USD: Sterling fell below $1.20 against dollar for the first time since the start of the pandemic after Scotland's First Minister Nicola Sturgeon said she was set to share details on plans for a new independence referendum. Sturgeon said she was nearly ready to give more details on how Scotland's devolved parliament could move ahead with a new independence referendum without the consent of the British government. After rising against the dollar , the pound fell 1.1% to $1.1993, its lowest level since March 2020.Immediate resistance can be seen at 1.2135(38.2%fib),an upside break can trigger rise towards 1.2181(5DMA).On the downside, immediate support is seen at 1.2000 (Psychological level), a break below could take the pair towards 1.9029 (23.6%fib).

 USD/CAD: The Canadian dollar extended recent declines against its U.S. counterpart on Tuesday on lingering jitters that the Federal Reserve, which began a two-day policy meeting, would be unable to control inflation without triggering a recession. The loonie weakened even as money markets fully priced in a three-quarter percentage point rate increase by the Bank of Canada at its next policy announcement on July 13, which would be the biggest hike since August 1998, and bet that rates would peak near 4% next year .The Canadian dollar was trading 0.4% lower at 1.2950 to the greenback , after touching its weakest since May 16 at 1.2974.Immediate resistance can be seen at 1.2984 (23.6%fib), an upside break can trigger rise towards 1.4256 (Higher BB).On the downside, immediate support is seen at 1.2879 (38.2%fib), a break below could take the pair towards 1.2854 (5 DMA).

 USD/JPY: The dollar dipped against dollar on Tuesday as traders braced for an aggressive rate hike from the U.S. Federal Reserve this week to try to curb inflation. Investors have been unsettled this week by rising expectations that the Fed will raise interest rates by more than forecast . There is a nearly 90% expectation for a 75-basis-point increase at the conclusion of a two-day meeting of the U.S. central bank's Federal Open Market Committee (FOMC) on Wednesday. The Japanese currency's fell to its lowest level since 1998 against the dollar.  The dollar against the yen  was last trading at 135.39 yen.  Strong resistance can be seen at 135.80 (23.6%fib), an upside break can trigger rise towards 136.61(Higher BB).On the downside, immediate support is seen at 134.74 (5DMA), a break below could take the pair towards 133.36(June 8th Low).

Equities Recap

European equities reversed early gains on Tuesday to extend their selloff for a sixth straight session on worries over aggressive U.S. interest rate hikes and a potential recession.

UK's benchmark FTSE 100 closed down by  2.75 percent, Germany's Dax ended down by 1.96 percent, France’s CAC finished the day down by 1.65 percent.                

The S&P 500 ended lower on Tuesday as the index was unable to bounce from a sharp sell-off in the prior session with a key policy statement from the Federal Reserve on deck that will reveal how aggressive the central bank's policy path will be.

Dow Jones closed down  by  0.50% percent, S&P 500 closed down by 0.38 % percent, Nasdaq settled up  by 0.18%percent.

Treasuries Recap

Interest rate sensitive two-year U.S. Treasury yields climbed to their highest level since 2007 on Tuesday as investors raised bets that the Federal Reserve will hike rates by 75 basis points when it concludes its two-day meeting on Wednesday.

Two-year Treasury note yields reached 3.430%, the highest since November 2007. Benchmark 10-year notes were at 3.339%, after reaching 3.440% on Monday, the highest since April 2011.  

Commodities Recap

Gold gave up small gains in range-bound trading on Tuesday as the dollar resumed its climb and hit a 20-year high, eroding bullion’s safe-haven appeal on investor bets of aggressive rate hikes by the U.S. Federal Reserve.

Spot gold fell 0.4% to $1,811.59 per ounce by 1:54 p.m. EDT (1754 GMT), while U.S. gold futures settled down 1% at $1,813.50.

Oil prices settled lower on Tuesday on fears the U.S. Federal Reserve will surprise markets with a higher-than-expected interest rate hike.

Brent crude futures settled down $1.10, or 0.9%, to $121.17 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2, or 0.7%, to settle at $118.93 a barrel

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