Market Roundup
• Italian May Composite PMI 55.7, 51.2 previous
• Italian May Services PMI 53.1, 52.5 forecast, 47.3 previous
• French May Markit Composite PMI 57.0, 57.0 forecast, 57.0 previous
• French May Services PMI 56.6, 56.6 forecast, 50.3 previous
• German May Composite PMI 56.2, 56.2 forecast, 55.8 previous
• French May Services PMI 56.6, 56.6 forecast, 50.3 previous
• German May Services PMI 52.8, 52.8 forecast, 52.8 previous
• EU May Services PMI 55.2, 55.1 forecast, 50.5 previous
• EU May Markit Composite PMI 57.1, 56.9 forecast, 53.8 previous
• UK May Composite PMI 62.9, 62.0 forecast, 62.0 previous
• UK May Services PMI 62.9, 61.8 forecast, 61.8 previous
Looking Ahead - Economic Data (GMT)
• 12:15 US May ADP Nonfarm Employment Change 650K forecast, 742K previous
• 12:30 US Continuing Jobless Claims 3,615K forecast, 3,642K previous
• 12:30 US Jobless Claims 4-Week Avg 458.75K previous
• 12:30 US Initial Jobless Claims 390K forecast, 406K previous
• 12:30 US Nonfarm Productivity (QoQ) (Q1) 5.5% forecast, 5.4% previous
• 13:45 US May Services PMI 70.1 forecast, 64.7 previous
• 13:45 US May Markit Composite PMI 68.1 forecast, 63.5 previous
•14:00 US May ISM Non-Manufacturing Business Activity 67.2 forecast, 62.7 previous
•14:00 US May ISM Non-Manufacturing PMI 63.0 forecast, 62.7 previous
•14:00 US May ISM Non-Manufacturing New Orders 63.2 previous
•14:00 US ISM Non-Manufacturing Employment 58.8 previous
•15:00 US Gasoline Inventories -1.479M forecast, -1.745M previous
•US Crude Oil Inventories -2.443M forecast, -1.662M previous
Looking Ahead - Economic events and other releases (GMT)
•16:00 BoE Gov Bailey Speaks
•16:30 US FOMC Member Bostic Speaks
•17:50 US FOMC Member Harker Speaks
•19:05 US FOMC Member Quarles Speaks
EUR/USD: The euro declined against dollar on Thursday as dovish from ECB President Christine Lagarde weighed on euro. The European Central Bank will support the euro zone “well into” its recovery from a pandemic-induced double dip recession, Lagarde said on Wednesday.With that ECB policymakers entered their silent period on Thursday, a week before their policy meeting on June 10, where they avoid saying anything that could influence expectations about monetary policy decisions. Immediate resistance can be seen at 1.2192 (38.2% fib), an upside break can trigger rise towards 1.2257 (23.6%fib).On the downside, immediate support is seen at 1.2145 (50% fib), a break below could take the pair towards 1.2100(61.8%fib).
GBP/USD: The pound held steady against the dollar on Thursday as investors wait on firmer signals as to whether growing cases of a COVID-19 variant first found in India could delay the wider reopening of the British economy due on June 21. Britain's currency has been a top performer among its G10 peers this year, thanks to positive sentiment around the country's rapid vaccination programme and hopes its economy will therefore rebound quicker than some others. Sterling was little changed at $1.4170, having touched a three-year high of $1.4250 versus the dollar earlier this week.Immediate resistance can be seen at 1.4174 (5DMA),an upside break can trigger rise towards 1.4214 (23.6%fib).On the downside, immediate support is seen at 1.4098 (38.2%fib), a break below could take the pair towards 1.4005(50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as markets awaited key U.S. economic data due later in the week as investors weighed inflation concerns. A weekly unemployment report and May private payrolls data on Thursday will be followed by monthly jobs numbers on Friday, with investors looking for signs of an economic rebound and rising inflation. Yet ahead of Friday's crucial U.S. jobs data, traders eagerly aim to assess what the increasing evidence of a faster-than-expected economic recovery would mean for central bank policy in Europe and the United States. Immediate resistance can be seen at 0.9030 (38.2%fib), an upside break can trigger rise towards 0.9082 (50%fib).On the downside, immediate support is seen at 0.8975 (5DMA), a break below could take the pair towards 0.8942 (23.6%fib).
USD/JPY: The dollar strengthened against yen on Thursday as traders awaited a batch of U.S. economic data that could set the tone at central bank meetings later this month. Investors have bet on the dollar falling as the world recovers from the COVID-19 pandemic, but they have lately grown nervous over whether a surprisingly strong U.S. economic rebound poses a threat to the assumption that interest rates will stay low for a long time. Strong resistance can be seen at 109.96 (Higher BB), an upside break can trigger rise towards 110.26 (23.6%fib).On the downside, immediate support is seen at 109.26(50%fib), a break below could take the pair towards 108.80(61.8%fib).
Equities Recap
European stocks slipped from all-time highs on Thursday, as investors awaited U.S. economic data to gauge the future path of monetary policy.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 1.16 percent, Germany's Dax was down by 0.60 percent, France’s CAC was last down by 0.59 percent.
Gold prices slipped nearly 1% on Thursday to hit their lowest in about a week as the dollar strengthened, while investors awaited the latest readings on the U.S. labor market to gauge economic recovery and future monetary policy.
Spot gold was down 0.8% to $1,893.61 per ounce by 0922 GMT. U.S. gold futures eased 0.7% to $1,895.80.
Oil prices rose for a third day on Thursday on expectations of a surge in fuel demand later this year, particularly in the United States and Europe and China, at the same time major producers are maintaining supply discipline.
Brent crude futures were up 40 cents, or 0.6%, at $71.75 a barrel by 0635 GMT, after earlier reaching the highest since September 2019. The international benchmark gained 1.6% on Wednesday.
