|   Market Roundups


  |   Market Roundups


Europe Roundup: Sterling slides ahead of Bank of England rate call, European stocks slip, Gold steadies, Oil prices fall after U.S. rate hike, but tight supply still in focus-June 16th,2022

Market Roundup

•UK Car May Registration (YoY)  -20.6%,15.8% previous

•UK May Car Registration (MoM) 4.4%,-51.1% previous

•French May Car Registration (YoY)  -10.1%, -22.6% previous

•French May Car Registration (MoM)  -16.6%,-26.1% previous

•Swiss SNB Interest Rate Decision (Q2) -0.25%,-0.75%, -0.75% previous

•Italian May CPI (MoM) 0.8%,0.9% forecasts,-0.1% previous

• EU Wages in euro zone (YoY) (Q1) 2.70%, 1.50% previous

Looking Ahead Economic Data(GMT)

•10:45 UK Jun BoE Interest Rate Decision  1.25% forecast,1.00% previous

•12:30   US Jun Philly Fed Business Conditions  2.5 previous

•12:30US Initial Jobless Claims 215K forecast,229K previous

•12:30 US Continuing Jobless Claims1,302K forecast,1,306K previous

•12:30 US Jobless Claims 4-Week Avg 215.00K previous

•12:30 Canada   Apr Wholesale Sales (MoM)  0.2% forecast,0.3% previous

•12:30 US Jun Philly Fed Employment  25.5 previous

•12:30 US May Building Permits (MoM) -3.0% previous

•12:30 US Jun Philadelphia Fed Manufacturing Index  5.5 forecast, 2.6 previous

•12:30 US May Housing Starts 1.701M forecast, 1.724M

•12:30 US May Building Permits 1.785M forecast, 1.823M previous

•12:30 US Housing Starts (MoM)  -0.2% previous

•15:30 US 8-Week Bill Auction  1.150% previous

•15:30 US 4-Week Bill Auction 1.040% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


EUR/USD: The euro declined against dollar on Thursday after a surprise interest rate hike from Swiss National Bank (SNB) fuelled fresh worries about the impact of inflation on the global economy. Euro already under pressure after the U.S. Federal Reserve's big interest rate hike on Wednesday, fell further after the SNB's unexpected rate hike.Traders will be closely watching several speakers from the European Central Bank after the ECB promised to control borrowing costs for the currency’s bloc’s periphery after an emergency meeting on Wednesday. Immediate resistance can be seen at 1.0499(38.2%fib),an upside break can trigger rise towards 1.0587(50%fib).On the downside, immediate support is seen at 1.0395(23.6%fib), a break below could take the pair towards 1.0361(Lower BB).

GBP/USD: Sterling slid towards its lowest level this year ahead of an expected Bank of England (BoE) interest rate hike on Thursday as concerns about Britain’s economic prospects weighed.The central bank is expected to raise interest rates by at least 25 basis points, with swaps markets implying chances are higher of an at least 50 basis points increase as the BoE tries to combat soaring inflation. Sterling has weakened around 11% against a robust dollar since the start of the year amid the grim outlook for the economy and political instability in Britain. The pound fell 0.88% against the dollar to $1.2070, near its lowest this year of $1.19340 reached on Tuesday. Immediate resistance can be seen at 1.2206(38.2%fib),an upside break can trigger rise towards 1.2319 (50%fib).On the downside, immediate support is seen at 1.2059(23.6%fib), a break below could take the pair towards 1.9909(Lower BB).

 USD/CHF: The dollar declined sharply against the Swiss franc on Thursday after the Swiss National Bank raised its policy interest rate for the first time in 15 years . The SNB joined other central banks in tightening monetary policy to fight surging inflation, increasing its policy rate to -0.25% from the -0.75% level it has deployed since 2015. The move followed a 75 basis point (bps) rate hike by the U.S. Federal Reserve on Wednesday. It was the SNB's first rate hike since September 2007. The Swiss franc surged to a two-month high against the euro, and was 1.8% higher at 1.0194 as of 0905 GMT. Against the U.S. dollar , the franc rose 1.35% to 0.9807.Immediate resistance can be seen at 0.9891 (38.2%fib), an upside break can trigger rise towards 0.9993(Daily  high).On the downside, immediate support is seen at 0.9764 (50%fib), a break below could take the pair towards 0.9632(61.8%fib).

 USD/JPY: The dollar dipped against Japanese yen on Thursday after the Federal Reserve delivered its biggest rate hike in decades but then tempered its outlook by telling investors that such sharp moves higher were unlikely to become a habit. Markets had expected the 75 basis point hike and priced in several more after a surprisingly hot inflation reading last week. The dollar had scaled new heights as U.S. yields rose, but it lurched lower after Chair Jerome Powell’s press conference. The yen last traded at 131.15 per dollar after finding a 24-year low of 135.60 on Wednesday. Strong resistance can be seen at 135.89 (23.6%fib), an upside break can trigger rise towards 136.51(Higher BB).On the downside, immediate support is seen at 133.18 (10DMA), a break below could take the pair towards 131.83(38.2%fib).

Equities Recap

European stocks slipped on Thursday after the U.S. Federal Reserve's decision to raise interest rates aggressively fuelled concerns about a potential recession at a time when global economies are facing sky-high inflation.

At (GMT 10:50 ),UK's benchmark FTSE 100 was last trading down at 2.46 percent, Germany's Dax was down  by 2.87  percent, France’s CAC was down by 2.30  percent.

Commodities Recap

Gold prices steadied on Thursday, buoyed by another dip in the dollar as investors assessed the implications of policy tightening by central banks to fight inflation.

 Spot gold was little changed at $1,831.80 per ounce by 0937 GMT. U.S. gold futures  rose 0.6% to $1,830.60.

Oil prices erased early gains to head lower on Thursday, a day after a fall triggered by a U.S. interest rate hike, though tight supply limited losses.

Brent crude futures were down 45 cents, or 0.4%, to $118.06 a barrel by 0906 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 44 cents to $114.87, also off 0.4%.

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.