Market Roundup
•BoE raises rates by 50 bps to 5.00%
•SNB rises rates by 25 bps to 1.75%
•US Current Account (Q1) -216.9B forecast, -206.8B previous
•US May Chicago Fed National Activity -0.15, 0.00 forecast, 0.07 previous
•US Initial Jobless Claims 264K, 260K forecast, 262K previous
•US Jobless Claims 4-Week Avg 255.75K, 242.01K forecast, 246.75K previous
•US Continuing Jobless Claims 1,759K,1,782K forecast, 1,775K previous
•US May US Leading Index (MoM) -0.7%, -0.8% forecast,-0.6% previous
•US May Existing Home Sales (MoM) 0.2%,0.2%,-3.4% previous
•US Crude Oil Inventories -3.831M , 1.873M forecast ,7.919M previous
•US Jun KC Fed Manufacturing Index -10 ,-11 forecast , -2 previous
•US Jun KC Fed Composite Index -12, -5 forecast , -1 previous
Looking ahead Economic Data(GMT)
•23:00 Australia Manufacturing PMI 48.1 forecast, 48.4 previous
•23:00 Australia Services PMI 50.1 forecast, 52.1 previous
•23:30 Japan May National Core CPI (YoY) 3.1% forecast, 3.4% previous
23:30 Japan May National CPI (YoY) 4.1% forecast, 3.5% previous
•00:30 Japan Services PMI 56.2 forecast, 55.9 previous
Looking Ahead Events And Other Release(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dippped against dollar on Thursday as investors focused on hawkish comments from Federal Reserve Chair Jerome Powell that suggested interest rates could go higher still as the central bank grapples with stubbornly high inflation. Powell, appearing before the Senate Banking Committee for his semi-annual monetary policy testimony reiterated his view that more interest rate hikes are likely in the months ahead, a sentiment echoed by Fed Governor Michelle Bowman earlier in the session On the economic front, jobless claims held steady at a 20-month high and the Conference Board's Leading Economic index posted its 14th consecutive monthly decline, suggesting that the Fed's efforts to dampen the economy are beginning to have their intended effect. Immediate resistance can be seen at 1.1014(23.6%fib), an upside break can trigger rise towards 1.1030(Higher BB).On the downside, immediate support is seen at 1.0950(5DMA), a break below could take the pair towards 1.0912( (38.2%fib).
GBP/USD: The pound held steady against the dollar after an initial surge during a volatile trading session on Thursday following the Bank of England's decision to raise interest rates by 50 basis points. The BoE's decision raised interest rates to 5%. Prior to the announcement, traders indicated there was a roughly 50% chance of a 50 bp increase and a 50% chance of a 25 bp hike. Markets now see a 66% chance of a 25 bp rise at the BoE's next meeting in August and a 34% chance of a 50 bp hike, and anticipate rates will peak at 6% in December, up marginally from 5.9% earlier.At 1350 GMT, sterling was down 0.13% versus the dollar at $1.2751, and very slightly down against the euro at 86.13 pence. Immediate resistance can be seen at 1.2843(23.6%fib), an upside break can trigger rise towards 1.2876 (Higher BB).On the downside, immediate support is seen at 1.2725(Daily low), a break below could take the pair towards 1.2637(14DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday, with the currency adding to its recent gains despite a sharp decline in oil prices and moves by global central banks to raise interest rates. The price of oil, one of Canada's major exports, settled 4.2% lower at $69.51 a barrel as higher interest rates globally raised worries about the economy and fuel demand. The loonie was trading 0.1% higher at 1.3150 to the greenback , after touching its strongest intraday level since September at 1.3140. Immediate resistance can be seen at 1.3180 (5DMA), an upside break can trigger rise towards 1.3204(38.2% fib).On the downside, immediate support is seen at 1.3130 (23.6% fib), a break below could take the pair towards 1.3093(Lower BB).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Thursday as Federal Reserve Chair Jerome Powell suggested more U.S. interest rate hikes may be needed to curb inflation. Powell, in his second day of testimony to lawmakers, suggested again the U.S. central bank has not reached the end of its tightening cycle.In addition, Fed Governor Michelle Bowman, at an event in Cleveland, said additional policy rate increases will be needed to control inflation. The dollar index , which measures the currency against six rivals, rose 0.4% to 102.41. Against the yen, the dollar was up 0.9% at 143.12 yen .Strong resistance can be seen at 143.23(Daily high) an upside break can trigger rise towards 143.57(23.6%fib).On the downside, immediate support is seen 142.28(5DMA), a break below could take the pair towards 141.75(38.2%fib)
Equities Recap
European shares briefly hit their lowest level in nearly three months on Thursday, with London stocks falling after a bigger-than-expected rate hike by the Bank of England (BoE) .
UK's benchmark FTSE 100 closed down by 0.49 percent, Germany's Dax ended down by 0.48 percent, France’s CAC finished the day down by 0.86 percent.
The S&P 500 and the Nasdaq closed higher on Thursday as U.S. Federal Reserve Chairman Jerome Powell continued to beat a hawkish drum and suggested the central bank has not reached the end of its tightening cycle, but provided reassurance that the Fed would proceed with caution.
Dow Jones closed down by 0.01% percent, S&P 500 closed up by 0.37 % percent, Nasdaq settled up by 0.95% percent.
Commodities Recap
Gold dropped nearly 1% to a three-month low on Thursday after U.S. Federal Reserve Chair Jerome Powell’s testimony, with the possibility of more rate hikes overriding any support from signs of a softer labour market.
Spot gold was down 0.9% at $1,914.19 per ounce by 2:34 p.m. EDT (1834 GMT), and is set for its fifth consecutive daily decline for the first time in four months.
Oil futures fell about 4% on Thursday, as a bigger-than-expected Bank of England rate hike prompted worries about the economy and fuel demand that outweighed support from a surprise draw in U.S. oil supplies.
Brent futures settled down $2.98, or 3.9%, to $74.14 a barrel. U.S. West Texas Intermediate (WTI) crude futures were down $3.02, or 4.2%, at $69.51.
