Market Roundup
•German Jun WPI (YoY) )21.2%, 22.9% previous
•Swiss Jun PPI (YoY) 6.9% , 6.9% previous
•Swiss Jun PPI (MoM) 0.3%,0.9% forecast, 0.9% previous
•Irish Jun CPI (MoM) 1.3% ,1.1% previous
• Irish Jun CPI (YoY) 9.1%, 7.8% previous
•Irish Jun HICP (YoY) 9.6%, 8.3% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Initial Jobless Claims 235K forecast, 235K previous
•12:30 US Continuing Jobless Claims 1,383K forecast, 1,375K previous
•12:30 US Jobless Claims 4-Week Avg 232.50K previous
•12:30 US Jun Core PPI (MoM) 0.5% forecast, 0.5% previous
•12:30 US Jun PPI (MoM) 0.8% forecast , 0.8% previous
•12:30 Canada May Manufacturing Sales (MoM) -2.0% forecast, 1.7% previous
•14:30 US Natural Gas Storage 58B forecast, 60B previous
•15:30 US 4-Week Bill Auction 1.530% previous
•15:30 US 8-Week Bill Auction 1.840% previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 US Fed Waller Speaks
Fxbeat
EUR/USD: The euro was trading just above parity against dollar a day after breaking below the key level for the first time in almost two decades. The single currency remained under pressure on Thursday, weighed by downgraded official economic forecasts for the euro zone and political strife in Italy. The euro fell as much as 0.5% on the day and was last down 0.4% at $1.0004. At the ECB meet next week, investors will be watching for any comments on the euro's drop and its tool to control widening euro zone bond spreads as well as inflation forecast and hints on the magnitude of future hikes. Immediate resistance can be seen at 1.0101 (5DMA), an upside break can trigger rise towards 1.0223(38.2% fib).On the downside, immediate support is seen at 1.0000 (Psychological level), a break below could take the pair towards 0.9949 (Lower BB).
GBP/USD: Sterling fell on Thursday as another bout of risk aversion sent investors snapping up dollars and selling currencies deemed riskier when the outlook is so uncertain. The pound fell 0.3% to $1.1856, not far from the more than two-year low of $1.1807 hit on Tuesday. Sterling has fallen sharply in 2022 despite the Bank of England raising interest rates repeatedly. That’s because the jump in rates across the developed world has unnerved investors and sent them seeking safety in the U.S. currency, which tends to be the safe-haven of choice given its role in the global economy and its liquidity. Immediate resistance can be seen at 1.1912(5DMA), an upside break can trigger rise towards 1.2061 (38.2%fib).On the downside, immediate support is seen at 1.1818 (23.6% fib), a break below could take the pair towards 1.1710 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors bet on the Federal Reserve will further raise interest rates to combat soaring inflation. Global economic turmoil has put a rocket under the safe haven dollar, pushing the dollar index that tracks the greenback against six counterparts up more than 13% this year. It was last up 0.3% on the day at 108.580.. At (GMT 11:00), greenback dipped 0.53% versus the Swiss franc to 0.9725. Immediate resistance can be seen at 0.9883(38.2% fib), an upside break can trigger rise towards 0.9919(Higher BB).On the downside, immediate support is seen at 0.9792(5DMA), a break below could take the pair towards 0.9752 (50% fib ).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday as fears the U.S. Federal Reserve could opt for a more aggressive interest rate hike this month to tackle sky-rocketing inflation boosted dollar. Traders have ramped up bets that the U.S. central bank could raise rates by 100 basis points when it meets on July 26-27. A hike of at least 75 basis points is seen as almost certain. The dollar strengthened more than 1% against the yen, pushing it above 139 yen per dollar for the first time since 1998. It was last up 1.1% at 138.92 yen. Strong resistance can be seen at 139.38 (23.6% fib), an upside break can trigger rise towards 140.00 (Psychological level).On the downside, immediate support is seen at 137.38 (5 DMA), a break below could take the pair towards 136.27(38.2% fib).
Equities Recap
European shares fell on Thursday, hurt by rising bets of more aggressive rate hikes by the Federal Reserve after a sharp spike in U.S. inflation, while Italy's main index tumbled 1% as the country's government faces collapse.
At (GMT 12:03 ),UK's benchmark FTSE 100 was last trading down at 0.98% percent, Germany's Dax was down by 1.28% percent, France’s CAC was down by 1.15%percent.
Commodities Recap
Gold prices shed more than 1% on Thursday, hovering near a one-year low, as the dollar extended its blistering rally after a hot U.S. inflation print cemented expectations around an aggressive Federal Reserve rate hike.
Spot gold retreated 1% to $1,718.69 per ounce by 0757 GMT. U.S. gold futures also lost 1% to $1,717.70.
Oil prices fell more than $2 on Thursday as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand.
Brent crude futures for September were down $2.14 to $97.43 a barrel at 1038 GMT after settling below $100 for a second straight session on Wednesday.
U.S. West Texas Intermediate crude for August delivery was at $93.78 a barrel, down $2.52.
