Market Roundup
• Australia Trade Balance (Apr) 1.791B, 1.230B forecast, -1.02B previous
• Australia Exports (MoM) (Apr) 7.2%, -2.5% previous
• Australia Imports (MoM) (Apr) 0.8%, 12.2% previous
• Japan Foreign Investments in Japanese Stocks -491.2B, 1,079.7B previous
•EU HCOB Eurozone Construction PMI (May) 43.7, 41.7 previous
•FR HCOB France Construction PMI (May) 39.6, 38.1 previous
• HCOB Germany Construction PMI (May) 42.4, 42.1 previous
• HCOB Italy Construction PMI (May) 49.4, 44.8 previous
Looking Ahead Economic Data (GMT)
• 10:00 EU Retail Sales (YoY) (Apr) 0.3% forecast, 1.2% previous
•10:00 EU Retail Sales (MoM) (Apr) -0.3%forecast, -0.1% previous
•10:30 US Challenger Job Cuts (May) 83.387K previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher on Wednesday as the Middle East conflict kept investors cautious. Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, boosting hopes for a broader deal to end the Iran conflict.The Republican-led U.S. House of Representatives approved a resolution to block U.S. President Donald Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old conflict.Oil prices eased on Thursday, as the ceasefire between Lebanon and Israel boosted hopes of a U.S.-Iran peace deal.Immediate resistance can be seen at 1.1648(May 25th high), an upside break can trigger rise towards 1.1693(SMA 20).On the downside, immediate support is seen at 1.1577(23.6%fib), a break below could take the pair towards 1.1561(Lower BB).
GBP/USD: The pound was little changed on Thursday as markets remained focused on the uncertain outcome of U.S.-Iran peace talks.Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, bolstering hopes of a broader deal.But that came after Iran earlier struck Kuwait's airport and the U.S. military carried out strikes near the Strait of Hormuz, underscoring how shaky the weeks-long U.S.-Iran ceasefire has become.Sterling was treading water at $1.342 as traders waited for further developments, and oil prices were also roughly flat.Immediate resistance can be seen at 1.3463(SMA 20), an upside break can trigger rise towards 1.3526(50%fib).On the downside, immediate support is seen at 1.3416(Daily low), a break below could take the pair towards1.3382(61.8%fib).
AUD/USD: Australian dollar traded in narrow range on Thursday as investors continued to assess developments in the Middle East and their potential impact on global markets.Iranian attacks on Kuwait damaged its airport and injured dozens on Wednesday while the U.S. military carried out strikes near the Strait of Hormuz, straining a shaky ceasefire and dimming hopes for a diplomatic halt to the war. The United States announced that Lebanon and Israel had agreed to a ceasefire, financial markets remain skeptical about the durability of the arrangement.On the data front, Australia's balance on goods trade swung back into surplus in April after a surprise deficit the month before, data showed on Thursday, as a rebound in resource exports helped offset a surge in fuel imports.The Australian Bureau of Statistics reported the balance on goods recorded a surplus of A$1.8 billion ($1.28 billion) in April, bang in line with market forecasts. March had seen the first deficit since 2017 at A$1.0 billion. Immediate resistance can be seen at 0.7170(38.2%fib), an upside break can trigger rise towards 0.7189(SMA 20).On the downside, immediate support is seen at 0.7104(Lower BB), a break below could take the pair towards 0.7088(50%fib).
USD/JPY: The dollar dipped slightly on Thursday as yen gained on a possible trigger for another round of intervention by Japanese authorities. The yen has now surrendered the gains made following Tokyo's ¥11.7 trillion intervention last month aimed at supporting the currency.The latest decline prompted fresh warnings from officials, with Prime Minister Sane Takaichi reiterating that the government is prepared to act against excessive exchange-rate volatility if needed.Meanwhile, Bank of Japan Governor Kazuo Ueda said the central bank would consider the costs and benefits of raising interest rates if inflation risks become more significant than the downside risks to economic growth . Immediate resistance can be seen at 159.74(Daily high) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.23(SMA 20) a break below could take the pair towards 157.78(50%fib ).
Equities Recap
Asian equities declined on Thursday as renewed U.S.–Iran hostilities weighed on risk sentiment and prompted investors to move out of risk assets.
Japan’s Nikkei 225 was down by 1.35% , Hang Seng was down at 1.53%, China A50 was up at 1.40%
Commodities Recap
Gold prices gained on Thursday, supported by a weaker U.S. dollar and lower crude oil prices, as investors weighed renewed expectations for progress toward resolving the U.S.–Israeli conflict with Iran.
Spot gold was up 0.8% at $4,465.56 per ounce, as of 0739 GMT. U.S. gold futures for August delivery gained 0.6% to $4,493.30.
Oil prices fell on Thursday after a ceasefire agreement between Israel and Lebanon boosted expectations of a broader de-escalation in the U.S.–Israeli conflict with Iran, raising hopes that the Strait of Hormuz could eventually reopen and ease supply risks.
Trade was cautious though and the decline was limited. Brent futures were down 77 cents, or 0.8%, at $97.03 a barrel by 0729 GMT, while U.S. West Texas Intermediate crude fell 70 cents, or 0.7%, to $95.32.
