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America's Roundup: Euro dips on election concerns, trade tensions support dollar, Wall Street rises, Gold steadies, Oil prices rise more than 1%-May 17th, 2109

Market Roundup

• Huawei ban clouds U.S.-China trade talks, tech sector

• US 11 May, w/e Initial Jobless Claims, 212k, 220k forecast, 228k previous

• US 4 May, w/e Continued Jobless Claims, 1.660 mln, 1.680 mln forecast, 1.684 mln previous

• US Apr Building Permits: Number, 1.296 mln, 1.290 mln forecast, 1.288 mln previous

• US Apr Housing Starts Number, 1.235 mln, 1.205 mln forecast, 1.139 mln previous

• US May Philly Fed Business Indx, 16.6, 9.0 forecast, 8.5 previous

• Fed needs to let inflation rise above 2%, Kashkari says

• Fed's Brainard: Breakdown in inflation-unemployment relationship poses challenge

• Britain's May to agree departure after latest Brexit deal bid

• CA Mar Manufacturing Sales MM, 2.1%, 1.1% forecast, -0.2% previous

• Bank of Canada says risk to financial system is slightly higher than last June

Looking Ahead - Economic Data (GMT)

• 16 May 22:30 New Zealand Apr
Manufacturing PMI, 51.9 previous

• 16 May 22:45 New Zealand Q1 PPI - Inputs QQ, 1.6% previous

• 16 May 22:45 New Zealand Q1 PPI - Outputs QQ, 0.8% previous

Looking Ahead - Events, Other Releases (GMT)

• N/A European Union finance ministers meet in Brussels

• N/A ECB Vice President Luis de Guindos participates in ECOFIN meeting in Brussels

• 03:00 BoJ Governor Haruhiko Kuroda speaks at seminar hosted by Jiji news agency in Tokyo 

• 11:00 Riksbank's board meeting in Stockholm

• 12:00 BoE's Executive Director, Financial Stability Strategy and Risk, Alex Brazier, speaks at Allen & Overy in London 

• 14:00 Fed's Clarida meets with LEAP Academy students and tours campus in Camden, New Jersey

• 15:15 New York Fed President John Williams participates in meeting with members of the Community League of the Heights (CLOTH) in New York

• 17:30 Philadelphia Fed President Patrick Harker speaks before the "Fed Listens: Education, Employment, and Monetary Policy in the Third District" in Philadelphia"

• 17:40 Fed's Clarida speaks at "Fed Listens: Education, Employment and Monetary Policy in the Third District" in Philadelphia

Currency Summaries

EUR/USD: The euro declined against the dollar on Thursday, as concerns about next week's European parliamentary elections weighed on single curreny. The euro was boosted on Wednesday by reports that U.S. President Donald Trump is expected to delay a decision on imposing tariffs on imported cars and parts by up to six months, avoiding opening yet another front in his global trade battles. Investors remain nervous about a new trade war and how it may affect the global economy. The euro was down 0.24 percent at $1.1173. An index that tracks the dollar versus a basket of six major currencies was down 0.45 at 96.867 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1245 (50 DMA ), an upside break can trigger rise towards 1.1276 (Higher Bollinger band).On the downside, immediate support is seen at 1.1166 (Daily low), a break below could take the pair towards 1.1135 (Lower Bollinger Bands).

GBP/USD: British pound declined against the dollar on Thursday, as stronger dollar and Brexit concerns weighed on British pound. The bigger focus for traders remained Brexit, especially after   Theresa May battled to keep her Brexit deal, and her premiership, intact amid growing fears of a disorderly departure from the European Union. She will set out a timetable for her departure in early June after the latest attempt to get her Brexit deal approved by parliament, but could face a confidence vote if the deal is voted down.  The prospect of May's demise is weighing on the pound because some investors think it could push Britain in the direction of a disorderly no-deal Brexit.The pound declined 0.35 percent at $1.2795 on the day. Immediate resistance can be seen at 1.2900 (5 DMA), an upside break can trigger rise towards 1.2985m(11 DMA).On the downside, immediate support is seen at 1.2765 (Lower Bollinger Bands), a break below could take the pair towards 1.2700  (Psychological level).

USD/CAD: The Canadian dollar rose to a nearly one-week high against its U.S. counterpart on Thursday, as oil prices climbed and domestic factory data showed strengthening in the economy. Canadian factory sales were up by 2.1% in March from February on higher motor vehicle sales, as well as petroleum and coal products, Statistics Canada said. The price of oil, one of Canada's major exports, rose for a third day running as fears of supply disruption amid heightened tensions in the Middle East overshadowed swelling U.S. crude inventories. At (2049 GMT), the Canadian dollar was trading 0.1% higher at 1.3420 to the greenback. Immediate resistance can be seen at 1.3500 (Psychological Level), an upside break can trigger rise towards 1.3537 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3390 (9 DMA), a break below could take the pair towards 1.3352 (Lower Bollinger Bands).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday, as investors focused on trade war tensions between United States and China . Trump is expected to delay a decision on imposing tariffs on imported cars and parts by up to six months, avoiding opening yet another front in his global trade battles. However, the Trump administration hit Chinese telecoms giant Huawei with severe sanctions on Wednesday, adding a new incendiary element to the U.S.-China trade dispute, casting a shade over investor optimism on the Sino-U.S. trade front.The dollar was 0.23 percent higher versus the Japanese yen at 109.84. Strong resistance can be seen at 110.14 (11 DMA), an upside break can trigger rise towards 110.88 (21 DMA).On the downside, immediate support is seen at 109.31 (Daily low), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

European shares reversed course to end in positive territory on Thursday, with deal-making news in Germany helping to prop up the pan-European benchmark as it overcame fears of an escalation in the U.S.-China trade war.

The UK's benchmark FTSE 100 closed up by 0.8 percent, FTSEurofirst 300 ended the day up by 1.12 percent, Germany's Dax ended up by 1.7 percent, and France’s CAC finished the up by 1.3 percent.

Wall Street closed higher on Thursday as upbeat earnings and strong economic data put investors in a buying mood, with technology companies leading the charge.

Dow Jones closed up by 1.39 percent, S&P 500 ended up 1.32 percent, Nasdaq finished the day up by 1.03 percent.

Treasuries Recap

Three encouraging economic data reports on Thursday morning and a rebound in equity prices pushed Treasury yields higher in the North American session.

The two-year yield, which is a proxy for market predictions of Fed policy, rose by 3 basis points, last at 2.20%, recovering from a dip Wednesday to 15-month lows. The benchmark 10-year yield   was last up 2.1 basis points at 2.40%. The five-  and seven-year   note yields were both up 2.3 basis points.

Commodities Recap

Gold was headed for its biggest one-day percentage decline in a month on Thursday, as the dollar gained and investors opted for riskier assets on the back of robust U.S. economic data even as the U.S.-China trade concerns linger.

Spot gold fell 0.8% to $1,285.63 per ounce as of 2:17 p.m. EDT (1817 GMT). Prices were on track for their biggest percentage decline since April 16.U.S. gold futures settled down 0.9% at $1,286.20 an ounce.

Oil futures were up more than 1% on Thursday as tensions in the Middle East grew, with a Saudi-led coalition launching air strikes in retaliation for recent attacks on its crude infrastructure.

Brent crude futures settled at $72.62 a barrel, up 85 cents, or 1.18%, after touching their highest level in three weeks. U.S. West Texas Intermediate (WTI) crude futures settled at $62.87 a barrel, gaining 81 cents, or 1.37%, after hitting its strongest level in two weeks.
 

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June 19 03:00 UTC Released

NZRBNZ Offshore Holdings

Actual

51.3 0

Forecast

Previous

51.2 0

June 18 23:50 UTC Released

JPTrade Balance Total Yen

Actual

-967.1 Bln JPY

Forecast

-979.2 Bln JPY

Previous

60.4 Bln JPY

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 737805737805m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 737805737805m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 725985725985m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

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