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  |   Market Roundups


America’s Roundup: Dollar struggles for direction, Gold gains traction, Oil dips after hitting seven-week highs on demand hopes, war jitters

Market Roundup

•US Jun NAHB Housing Market Index  45 forecast,45 previous

Looking Ahead Economic Data(GMT)

•23:30 Japan Foreign Investments in Japanese Stocks -346.6B previous

•23:30 Japan Foreign Bonds Buying -2,647.6B previous

•01:15   China June PBoC Loan Prime  3.95% forecast,3.95% previous

•01:15   China PBoC Loan Prime Rate 3.45% forecast,3.45% previous

•01:30   Australia May Reserve Assets Total  93.1B previous

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Summarier

EUR/USD: The euro remained close to its recent lows on Wednesday as concerns that a new government in France could weaken fiscal discipline kept investors cautious. Analysts flagged that the single currency was far from pricing any serious threat to the financial stability of the euro area bloc.National Rally's (NR) leader, Marine Le Pen, said she sought cohabitation with President Emmanuel Macron and would be respectful of institutions, triggering expectations that NR could backtrack on fiscally expensive pledges if it should win the elections in early July.The European Commission on Wednesday proposed widely expected disciplinary steps against France, Italy and five other European Union countries over running excessive budget deficits. Immediate resistance can be seen at 1.0759(June 18Th high), an upside break can trigger rise towards 1.0782(23.6% fib).On the downside, immediate support is seen at 1.0734 (38.2% fib), a break below could take the pair towards  1.0679(23.6% fib).

GBP/USD: Sterling rose slightly versus the dollar on Wednesday after data showed British inflation returned to the Bank of England's 2% target in May for the first time in nearly three years.The drop in annual consumer price inflation from April's 2.3% reading was in line with economists' median expectation in a poll and marks a sharp decline from the 41-year high of 11.1% reached in October 2022 . Markets priced an around 25% chance of a Bank of England rate cut in August, down from 50% before data, and 44 basis points of monetary easing in 2024, down from almost half percentage point before figurese BoE holds its policy meeting on Thursday. Immediate resistance can be seen at 1.2754(23.6%fib), an upside break can trigger rise towards 1.2808(Higher BB).On the downside, immediate support is seen at 1.2676(38.2%fib), a break below could take the pair towards 1.2602(50% fib).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, holding near an earlier one-week high, as investors weighed minutes from the Bank of Canada's latest meeting and looked forward to Canadian inflation data. The Bank of Canada has worried that progress on cooling inflation could stall. It mulled the merits of waiting for an extra month to start cutting interest rates before it decided to ease monetary policy on June 5, minutes of the meeting showed. The price of oil   was down 0.1% at $81.49 a barrel but holding near an earlier seven-week high.The loonie   was trading nearly unchanged at 1.3715 to the U.S. dollar, or 72.91 U.S. cents, after touching its strongest level since last Wednesday at 1.3699.Immediate resistance can be seen at 1.3744 (23.6% fib), an upside break can trigger rise towards 1.3783 (Higher BB).On the downside, immediate support is seen at 1.3693(38.2% fib), a break below could take the pair towards 1.3650(50% fib).

USD/JPY: The U.S. dollar struggled for direction   against yen on Wednesday as U.S. retail sales suggested that economic activity remained lacklustre and the Federal Reserve will cut rates sooner. U.S. retail sales barely rose in May and figures for the prior month were revised considerably lower, data showed on Tuesday, suggesting economic activity remained lacklustre in the second quarter.That slightly boosted the odds of a Federal Reserve rate cut in September to 67% from 61% a day earlier, the CME FedWatch tool showed. Investors focus now shifts to U.S. weekly jobless claims data on Thursday and flash purchasing managers' indexes on Friday. Strong resistance can be seen at 158.83(23.6%fib), an upside break can trigger rise towards 159.13(Higher BB).On the downside, immediate support is seen at 156.46(38.2% fib), a break below could take the pair towards 155.14 (50%fib).

Equities Recap

European shares ended lower on Wednesday, pressured by losses in real estate and technology stocks, while UK stocks were buoyed by metal miners as investors digested its inflation data.

UK's benchmark FTSE 100 closed down by  0.17 percent, Germany's Dax ended down by 0.36 percent, France’s CAC finished the day down by 0.77 percent.                

 Commodities Recap

Gold prices edged up on Wednesday after data suggesting lacklustre U.S. economic activity kept alive hopes for at least one interest rate cut this year.

Spot gold was up 0.1% at $2,330.23 per ounce as of 12:32 p.m. ET (1632 GMT). Most of the markets in the U.S. are closed for the Juneteenth holiday.

Oil prices dipped on Wednesday after hitting seven-week highs as summer demand optimism and concerns over escalating conflicts offset an industry report that said U.S. crude inventories unexpectedly rose.

Brent crude futures slipped 6 cents, or 0.1%, to $85.27 a barrel by 1943 GMT, while U.S. West Texas Intermediate crude was down 10 cents, or 0.1%, at $81.47 per barrel.

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