Market Roundup:
•U.S. CPI rises 0.6% in May
•ECB keeps monetary policy unchanged
•US Continuing Jobless Claims 3,499K,3,602K forecast, 3,771K previous
•US Initial Jobless Claims 376K,370K forecast, 385K previous
•US Jobless Claims 4-Week Avg 402.50K,428.00K previous
•US May CPI Index, s.a 268.55, 266.83 previous
•US May CPI, n.s.a (MoM) 0.80%,0.82% previous
•US May CPI Index, n.s.a 269.20, 268.47 forecast, 267.05 previous
•US May Core CPI (YoY) 3.8%,3.4% forecast, 3.0% previous
•US May CPI (MoM) 0.6%,0.4%,0.8% previous
•US May May Core CPI (MoM) 0.7%, 0.4% forecast, 0.9% previous
•Russia Central Bank reserves (USD) 605.2B, 605.9B previous
•US May Cleveland CPI (MoM) 0.3%, 0.2% previous
Looking Ahead - Economic data ahead (GMT)
•23:50 Japan BSI Large Manufacturing Conditions (Q2) 1.6 previous
Looking Ahead – Events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Thursday as greenback surrendered brief gains against the single currency after above-forecast U.S. inflation and the decline in unemployment did not convince the market that the Fed would be eager to reduce monetary accommodation. The dollar index fell 0.11% to 90.041, with the euro up 0.02% to $1.2176. Immediate resistance can be seen at 1.2194 (23.6% fib), an upside break can trigger rise towards 1.2229(June 9th high).On the downside, immediate support is seen at 1.2145 (38.2%fib), a break below could take the pair towards 1.2131 (Lower BB).
GBP/USD: The British pound reversed earlier losses on Thursday and rose against the dollar after data showed US consumer prices rose while the European Central Bank maintained an elevated flow of stimulus, as expected. As economies recover from the lockdowns, US consumer prices rose 5% yoy, the largest annual increase since August 2008, while the ECB raised its growth and inflation forecasts for 2021 and 2022. Sterling rose 0.3% to $1.4171 versus the dollar at 1445 GMT. Immediate resistance can be seen at 1.4210(Higher BB), an upside break can trigger rise towards 1.4246(23.6%fib).On the downside, immediate support is seen at 1.4128 (38.2%fib), a break below could take the pair towards 1.4099(Lower BB).
USD/CAD: The loonie rose slightly against its US counterpart on Thursday as oil prices rose and comments from a senior Bank of Canada official supported expectations of a further reduction in central bank stimulus next month. The currency has been the top-performing group of 10 currency against the dollar that year, gaining 5.3% against the dollar and is supported by higher commodity prices and the Bank of Canada's tougher stance, including a cut in bond purchases. The loonie was trading 0.2% higher at 1.2090 to the greenback, or 82.71 U.S. cents, after touching its weakest level since last Friday at 1.2127. Immediate resistance can be seen at 1.2141 (38.2%fib), an upside break can trigger rise towards 1.2229 (50%fib).On the downside, immediate support is seen at 1.2075 (21DMA), a break below could take the pair towards 1.2039 (23.6%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Thursday after switching between profit and loss at the start of the session as investors absorbed rising US inflation and comments from the European Central Bank . After adopting a wait-and-see attitude all week, sucking volatility from the market and leaving major currencies mostly range-bound, Thursday’s developments appeared to add little new direction to currency markets. Strong resistance can be seen at 109.42(5DMA), an upside break can trigger rise towards 109.72 (38.2%fib).On the downside, immediate support is seen at 109.25 (50%fib), a break below could take the pair towards 109.09 (50DMA).
Equities Recap
European stocks inched to fresh peaks on Thursday as the European Central Bank raised its recovery outlook and promised to keep ample stimulus flowing, while travel stocks fell after a recent run of gains.
UK's benchmark FTSE 100 closed up by 0.10 percent, Germany's Dax ended down by 0.06 percent, France’s CAC finished the day down by 0.26 percent.
Wall Street stocks ended higher on Thursday, with the S&P 500 closing above its prior record high set on May 7, as economic data appeared to support the Federal Reserve’s assertion that the current wave of heightened inflation will be temporary.
Dow Jones closed up by 0.06% percent, S&P 500 closed up by 0.47% percent, Nasdaq settled up by 0.78% percent.
Treasuries Recap
Traders sent longer-term U.S. Treasury yields higher Thursday after new data showed a further increase of consumer prices in May, steepening a closely watched part of the yield curve.
The benchmark 10-year yield was up 2.7 basis points at 1.5161% in morning trading and had reached as high as 1.535%.
Commodities Recap
Gold prices nudged up on Thursday after data showed U.S. consumer prices increased more than expected last month but eased fears over the Federal Reserve tapering its monetary support.
Spot gold rose 0.3% to $1,893.75 per ounce by 1:43 p.m EDT (1743 GMT), having earlier hit its lowest level since June 4 at $1,869.46. U.S. gold futures settled at 1,896.40 an ounce.
Oil prices edged up to their highest in over two years in volatile trade on Thursday, on optimism for strong economic demand after new U.S. unemployment claims fell to their lowest since the country's first wave of COVID-19 last year.
Brent futures rose 30 cents, or 0.4%, to settle at $72.52 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to end at $70.29.
