Market Roundup
• French Jun Services PMI 57.4, 59.4 forecast, 56.6 previous
• French Jun Manufacturing PMI 58.6, 59.0 forecast, 59.4 previous
•French Jun Markit Composite PMI 57.1, 59.0 forecast, 57.0 previous
•German Jun Services PMI 58.1, 55.5 forecast, 52.8 previous
•German Jun Composite PMI 60.4, 57.5 forecast, 56.2 previous
• German Jun Manufacturing PMI 64.9, 63.0 forecast, 64.4 previous
•EU June Markit Composite PMI 59.2, 58.8 forecast, 57.1 previous
•EU June Manufacturing PMI 63.1, 62.1 forecast, 63.1 previous
•EU Services Jun PMI 58.0, 57.8 forecast, 55.2 previous
•UK Composite PMI 61.7 forecast, 62.8 forecast, 62.9 previous
•UK Services PMI 61.7, 63.0 forecast, 62.9 previous
•UK Manufacturing PMI 64.2, 64.0 forecast, 65.6 previous
•Canada Apr Retail Sales (MoM) -5.7%, -5.0% forecast, 3.6% previous
•US Current Account (Q1) -195.7B, -206.8B forecast, -188.5B previous
•Canada Apr Core Retail Sales (MoM) -7.2%, -5.0% forecast, 4.3% previous
Looking Ahead - Economic Data (GMT)
•13:45 US Jun Services PMI 70.0 forecast, 70.4 previous
•13:45 US Manufacturing PMI 61.5 forecast ,62.1 previous
•13:45 US Jun Markit Composite PMI 68.7 previous
•14:00 US May New Home Sales (MoM) -5.9% previous
•14:00 US May New Home Sales 870K forecast , 863K previous
•14:00 US Gasoline Inventories 0.833M forecast , 1.954M previous
•14:30 US Crude Oil Inventories-3.942M forecast , -7.355M previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 FOMC Member Bostic Speaks
•16:00 EU ECB President Lagarde Speaks
•20:30 FOMC Member Rosengren Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday as upbeat Euro zone PMI data supported euro. Euro zone business growth accelerated at its fastest pace in 15 years in June as the easing of lockdown measures unleashed pent-up demand and drove a boom in the dominant services sector but also led to soaring price pressures. A flash services PMI bounced to 58.0 from 55.2, its highest since January 2018 and above the 57.8. Immediate resistance can be seen at 1.1966(38.2% fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1909(5DMA), a break below could take the pair towards 1.1885(23.6%fib).
GBP/USD: Sterling strengthened for a third straight session against the dollar on Wednesday, as sterling continued to recovery after it fell in the wake of last week’s Federal Reserve meeting. Recent movements in the pound have been dollar-driven, as investors price in earlier than expected asset purchase tapering from the Federal Reserve, after the U.S. central bank signalled last week higher rates in 2023. By 12:15 GMT, sterling was 0.3% higher at $1.3988. It was also up 0.3% against the euro at 85.35 pence, its highest level since April 6. Immediate resistance can be seen at 1.4000 (Psychological level),an upside break can trigger rise towards 1.4071 (61.8%fib).On the downside, immediate support is seen at 1.3917 (38.2%fib), a break below could take the pair towards 1.3844 (23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday after U.S. Federal Reserve officials including Chair Jerome Powell reaffirmed tighter monetary policy was still some way off after a hawkish turn by the Fed last week caught markets off guard. But policymakers have since then softened their stance with both Powell and New York Fed President John Williams warning the economic recovery requires more time before a tapering of stimulus and higher borrowing costs are appropriate. Their dovish comments cemented the dollar’s losses this week with the greenback shaving a third of its gains since last Wednesday. Immediate resistance can be seen at 0.9199 (38.2%fib), an upside break can trigger rise towards 0.9236(23.6%fib ).On the downside, immediate support is seen at 0.9155 (50%fib), a break below could take the pair towards 0.9107(61.8%fib).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday after U.S. Federal Reserve Chairman Jerome Powell calmed concerns over policy tightening. Powell said on Tuesday that inflation would not be the only determinant in interest rates decisions, calming investors worried about sooner-than-expected rate hikes after the Fed’s hawkish turn. The dollar index held near one-week lows on Wednesday.Strong resistance can be seen at 110.84(23.6%fib), an upside break can trigger rise towards 111.09(Daily high).On the downside, immediate support is seen at 110.55 (Daily low), a break below could take the pair towards 110.28(38.2%fib).
Equities Recap
European stocks struggled to gain momentum on Wednesday but Wall Street futures pointed to a slightly higher open after reassurances from U.S. Federal Reserve Chair Jerome Powell that the Fed is not rushing to hike rates.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.32 percent, Germany's Dax was down by 0.58 percent, France’s CAC finished was down by 0.62 percent.
Commodities Recap
Gold prices ticked higher on Wednesday, buoyed by weakness in the dollar after U.S. Federal Chairman Jerome Powell’s reassurance that interest rates would not be hiked too quickly.
Spot gold rose 0.2% to $1,782.00 per ounce by 0957 GMT and U.S. gold futures gained 0.3% to $1,782.80.
Oil rose above $75 a barrel on Wednesday, reaching its highest since late 2018, after an industry report on U.S. crude inventories reinforced views of a tightening market as travel picks up in Europe and North America.
Brent crude rose 76 cents, or 1%, to $75.57 by 0922, having touched its highest since October 2018 at $75.66. U.S. West Texas Intermediate added 55 cents, or 0.8%, to $73.40 and is close to its highest since October 2018.
