Market Roundup
•French May Manufacturing PMI 46.7,45.8 forecast,45.3 previous
•French May Services PMI 49.4 ,51.8 forecast,51.3 previous
•French May S&P Global Composite PMI 49.1 ,51.0 forecast,50.5 previous
•German May Manufacturing PMI 45.4, 43.4 forecast,42.5 previous
•German May Composite PMI 52.2,51.0 forecast,50.6 previous
•German Services PMI 53.9,53.5 forecast,53.2 previous
•EU May Services PMI 53.3,53.6 forecast,53.3 previous
•EU Manufacturing PMI 47.4,46.2 forecast,45.7 previous
•EU May S&P Global Composite PMI 52.3,52.0 forecast,51.7 previous
•UK Composite PMI 52.8,54.0 forecast, 54.1 previous
•UK Composite Manufacturing PMI51.3 ,49.5 forecast,49.1 previous
•UK Services PMI 52.9,54.7 forecast,55.0 previous
•Canada New Housing Price Index (MoM) 0.2%,0.1% forecast,0.0% previous
•US Initial Jobless Claims 215K, 220K forecast,222K previous
•US Continuing Jobless Claims 1,794K,1,794K previous
•US Jobless Claims 4-Week Avg. 219.75K, 217.75K previous
•US Building Permits 1.440M, 1.440M forecast,1.467M previous
•US Building Permits (MoM) -3.0%, -3.0% forecast,-3.7% previous
Looking Ahead Economic Data(GMT)
•13:45 US May Manufacturing PMI 50.0 forecast,50.0 previous
•13:45 US May Services PMI 51.2 forecast,51.3 previous
•13:45 US May S&P Global Composite PMI 51.1 forecast,51.3 previous
•14:00 US Apr New Home Sales (MoM) 8.8% previous
•14:30 US Natural Gas Storage 84B forecast, 70B previous
•15:00 US May KC Fed Manufacturing Index -13 previous
•15:00 US May KC Fed Composite Index -8 previous
•14:00 US Apr New Home Sales 677K forecast, 693K previous
Looking Ahead Events And Other Releases(GMT)
•19:00 US FOMC Member Bostic Speaks
Currency Forecast
EUR/USD: The euro rose on Thursday after data showed euro zone business activity expanded at its fastest pace in a year this month.The European common currency was last up 0.22% at $1.08450 after the preliminary composite Purchasing Managers' Index for the currency bloc came in above the 50 level separating growth from contraction for the third month in a row, with even struggling manufacturing showing a recovery. Better than feared economic data for the past few months helped the euro rally in April and early May, and Thursday's data pushed the currency back towards mid-May's two-month high of $1.0895. Immediate resistance can be seen at 1.0886(23.6%fib), an upside break can trigger rise towards 1.0908(Higher BB).On the downside, immediate support is seen at 1.0830 (38.2% fib), a break below could take the pair towards 1.0796(50% fib).
GBP/USD: The pound held broadly steady on Thursday near multi-month highs a day after British Prime Minister Rishi Sunak called a national election and data showed inflation did not slow as much as expected in April.Sterling was flat on the dollar at $1.2714, having touched a two month high of $1.2761 the day before after data showed British consumer prices rose by 2.3% in annual terms in April, nearing the Bank of England's 2% target but slowing less than markets had expected.The British currency reached its strongest in three months versus the euro in early trade but then weakened after euro zone business activity data helped the common currency to rise 0.2% to 85.26 pence. Immediate resistance can be seen at 1.2755(23.6%fib), an upside break can trigger rise towards 1.2787(Higher BB).On the downside, immediate support is seen at 1.2686(38.2% fib), a break below could take the pair towards 1.2623(50% fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday as investors digested minutes of the U.S. Federal Reserve's latest policy meeting. Minutes released on Wednesday from the Federal Reserve's most recent policy meeting showed the U.S. central bank discussed the potential to raise interest rates in the face of continued stubborn inflation. Federal Reserve officials indicated that it would take longer than previously anticipated to gain greater confidence in inflation moving to 2%, according to the minutes of the U.S. central bank's April 30-May 1 session. The dollar index, which tracks the unit against six main peers, down 0.15% at 104.7Immediate resistance can be seen at 0.9150 (23.6% fib), an upside break can trigger rise towards 0.9199 (Higher BB).On the downside, immediate support is seen at 0.9131(Daily low), a break below could take the pair towards 0.9093(50% fib).
USD/JPY: The U.S. dollar eased slightly against yen on Thursday after data showed Japan's factory activity entered expansion for the first time in a year in May. The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) climbed to 50.5 in May from 49.6 in April, breaching the 50.0 threshold separating growth from contraction last seen in May last year. Japan's business-to-business wholesale inflation held steady at 0.9% in April as the yen's declines pushed up import costs, government data showed last week, with analysts expecting it to accelerate in coming months. The dollar was a fraction softer against the Japanese currency at 156.64 yen .Strong resistance can be seen at 156.82 (23.6%fib), an upside break can trigger rise towards 158.06(Higher BB).On the downside, immediate support is seen at 155.25(38.2% fib), a break below could take the pair towards 155.00(Psychological level).
Equities Recap
European stocks rose on Thursday after strong forecasts from AI darling Nvidia lifted global chipmakers, while surveys pointing to improving business activity in the euro zone prompted traders to scale back bets of interest rate cuts this year.
UK's benchmark FTSE 100 was last down by 0.04 percent, Germany's Dax was last up by 0.24 percent, France’s CAC was last up by 0.39 percent.
Commodities Recap
Gold prices dipped over 1% on Wednesday as the gold rally cooled with investors booking profits, as traders pulled back from bets on Federal Reserve's rate cuts this year.
Spot gold fell 1.8% to $2,377.43 per ounce by 1858 GMT. Prices had scaled a record high of $2,449.89 on Monday.U.S. gold futures settled 1.4% lower to $2,392.90.
Oil prices crept up on Thursday, clawing back some of the previous three days' losses despite the U.S. Federal Reserve entertaining further tightening of interest rates if inflation remains sticky, a move that could hurt oil demand.
Brent crude futures were up 51 cents, or 0.6%, at $82.41 a barrel by 1121 GMT. U.S. West Texas Intermediate crude (WTI) futures were also up 51 cents, or 0.7%, at $78.08.
