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  |   Market Roundups


America’s Roundup: Dollar steady before retail sales, Fed minutes, Wall Street ends mixed,Gold eases, Oil falls to 6-mth low on economic data, awaits news of Iran nuclear deal-August 17th,2022

Market Roundup

•Canada Trimmed CPI (YoY) 5.4%, 5.5% previous

•Canada Median CPI (YoY) 5.0%                , 4.9% previous

•Canada Common CPI (YoY) 5.5% ,4.6% previous

•US Jul Building Permits 1.674M,1.650M forecast, 1.696M previous

•Canada Jul CPI (MoM) 0.1%, 0.1% forecast, 0.7% previous

 •US Jun Foreign Securities Purchases  -17.54B,23.75B forecast ,2.35B previous

•US Jul Housing Starts (MoM) -9.6%, -2.0% previous

•Canada Jul Core CPI (YoY) 6.1%, 6.2% previous

•Canada Jul Core CPI (MoM)  0.5%, 0.3% previous

•French 6-Month BTF Auction 0.163%, 0.177% previous

•French 3-Month BTF Auction 0.019% ,0.053% previous

•French 12-Month BTF Auction 0.615%, 0.545% previous

•US Jul Manufacturing Production (MoM) 0.7%, 0.2% forecast, -0.5% previous

•US Jul Industrial Production (YoY) 3.90%, 4.16% previous

•US Jul Capacity Utilization Rate80.3%, 80.1% forecast, 80.0% previous

•US Jul Industrial Production (MoM) 0.6%,0.3% forecast, -0.2% previous

•New Zealand GlobalDairyTrade Price Index  -2.9%,-5.0% previous

Looking Ahead – Economic data (GMT)

•01:30   Australia Wage Price Index (YoY) (Q2) 2.7% forecast, 2.4% previous

•01:30   Australia Wage Price Index (QoQ) (Q2) 0.8% forecast, 0.7% previous

•02:00 New Zealand RBNZ Interest Rate Decision 3.00%   forecast,2.50% previous

•03:00 New Zealand  RBNZ Press Conference

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro climbed back into positive territory, after dropping earlier on data showing that German investor sentiment fell slightly in August on concerns the rising cost of living will hit private consumption. Europe is struggling with an energy crisis after imposing sanctions on Russia due to its invasion of Ukraine.Germany secured a commitment on Tuesday from major gas importers to keep two floating liquefied natural gas (LNG) terminals fully supplied from this winter in a bid to cut reliance on Russian fuel, as Moscow warned that sky-high gas prices may jump again. The euro rose 0.10% against the dollar to $1.0169, after earlier falling to $1.0121, the lowest since Aug. 3. Immediate resistance can be seen at 1.0168(38.2%fib), an upside break can trigger rise towards 1.0233(5DMA).On the downside, immediate support is seen at 1.0101(23.6%fib), a break below could take the pair towards 1.0079(Lower BB).

GBP/USD: The British edged higher against dollar on Tuesday after mixed data showed a jobs market that is still hot, although some early signs it may be starting to cool. Britain’s unemployment rate held close to a half-century low, but the number of people employed grew less than expected in a Reuters poll and the number of job vacancies fell for the first time since mid-2020, the Office for National Statistics (ONS) said. Wages, not including bonuses, rose by 4.7%, above expectations of 4.5%. But the real value of pay, not including bonuses, dropped faster than at any time since records began in 2001, the ONS said, amid surging inflation. Immediate resistance can be seen at 1.2093(38.2%fib), an upside break can trigger rise towards 1.2125(5DMA).On the downside, immediate support is seen at 1.1963(23.6%fib),a break below could take the pair towards 1.1947 (Lower BB).

 USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors raised bets on another oversized interest rate hike by the Bank of Canada next month after domestic data showed rising underlying inflation pressures. Canada's annual inflation rate slowed to 7.6% in July as gasoline prices eased, but that was still far above the Bank of Canada's 2% target, while the average of the central bank's preferred measures of core inflation ticked up to 5.3%. Money markets were pricing in 59 basis points of tightening by the central bank at its next policy announcement on Sept. 7, up from 53 basis points before the data. The Canadian dollar   was trading 0.5% higher at 1.2840 to the greenback. Immediate resistance can be seen at 1.2909(Psychological level), an upside break can trigger rise towards 1.2932 (Daily high).On the downside, immediate support is seen at 1.22835 (38.2%fib), a break below could take the pair towards 1.2770 (50%fib).

USD/JPY: The dollar strengthened against yen on Tuesday as investors waited on U.S. retail sales and minutes from the Federal Reserve's July meeting on Wednesday.The greenback has bounced from a six-week low last week as investors ramp up bets that the U.S. central bank will continue to hike rates aggressively as inflation remains persistently high.Trading has been choppy, however, with the Fed not due to meet until Sept. 20-21 and with more consumer price inflation and jobs data due before then. Investors will scour minutes from the Fed’s July meeting on Wednesday for any new signals of how large a rate hike is likely in September. Strong resistance can be seen at 134.62(21DMA), an upside break can trigger rise towards 135.25(23.6%fib).On the downside, immediate support is seen at 1333.54(38.2%fib), a break below could take the pair towards 132.91 (Daily low).

Equities Recap

European shares extended gains for a fifth straight session on Tuesday, buoyed by defensive sectors and miners, although concerns over a potential recession limited further upside.

The UK's benchmark FTSE 100 closed up by 0.68 percent, Germany's Dax ended up by 0.36 percent, and France’s CAC finished the day up by 0.34 percent.

The Dow and S&P 500 rose on Tuesday as stronger-than-expected results and outlooks from Walmart and Home Depot bolstered views on the health of consumers, while technology shares declined and weighed on the Nasdaq.

Dow Jones closed up by 0.71 percent, S&P 500 ended up  by 0.19 percent, Nasdaq finished the down up by 0.19 percent.

U.S. Treasury yields edged higher on Tuesday on the back of encouraging data from American retail giants, which suggested the Federal Reserve has room to further tighten financial conditions as it battles four-decade-high inflation.

Benchmark 10-year Treasury yields   rose to 2.822% from 2.791% on Monday, while two-year note yields   climbed to 3.249% from 3.203%.

Commodities Recap

Gold edged lower on Tuesday as the dollar held close to a near three-week high, while investors awaited direction on interest rate hikes from minutes of the U.S. Federal Reserve’s last meeting.

Spot gold fell 0.2% to $1,774.79 per ounce by 1730 GMT, after a more than 1% decline on Monday. U.S. gold futures settled down 0.5% at $1,789.7.

Oil prices fell about 3% on Tuesday to their lowest since before Russia's invasion of Ukraine as economic data spurred concerns about a potential global recession, while the market awaited clarity on talks to revive a deal that could allow more Iranian oil exports.

Brent crude futures fell $2.76, or 2.9%, to settle at $92.34 a barrel. The contract hit a session low of $91.71 per barrel, the lowest since Feb. 18.

West Texas Intermediate crude (WTI) shed $2.88, or 3.2%, to settle at $86.53 a barrel.

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