Market Roundup
•US May Housing Starts (MoM) -5.5%,4.1% previous
•US May Building Permits 1.386M , 1.450M forecast,1.440M previous
•US May Building Permits (MoM) -3.8% ,-3.0% previous
•US May Housing Starts 1.277M ,1.370M forecast,1.360M previous
•US Jun Philadelphia Fed Manufacturing Index 1.3, 4.8 forecast,4.5 previous
•US Jun Philly Fed Business Conditions 13.8 ,32.4 previous
•US Jun Philly Fed New Orders -2.2 ,-7.9 previous
•US Jun Philly Fed Prices Paid 22.50, 18.70 previous
•US Jun Philly Fed Employment -2.5 ,-7.9 previous
•US Initial Jobless Claims 238K , 235K forecast,242K previous
•US Continuing Jobless Claims 1,828K ,1,810K forecast,1,820K previous
•US Jobless Claims 4-Week Avg. 232.75K ,227.00K previous
• US Crude Oil Inventories -2.547M,-2.800M forecast, 3.730M previous
Looking Ahead Economic Data(GMT)
•03:00 New Zealand Credit Card Spending (YoY) -0.6% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro remained close to its recent lows on Thursday as markets fretted that French President Emmanuel Macron's gamble to call parliamentary elections could pave the way for the high-spending far right or far left to come to power. Last week, France's president called a snap election, with its high debt levels a source of concern for market participants. France's far-right National Rally (RN) hit back on Thursday at charges from opponents that its spending plans would crash the economy, while President Emmanuel Macron's centrist alliance said it was the only bulwark against financial mismanagement.The euro was on the back foot again on Thursday, down 0.16% against the dollar to $1.07285 but still above the six-week low of $1.0667 hit on Friday. Immediate resistance can be seen at 1.0753(Daily high), an upside break can trigger rise towards 1.0768(38.2% fib).On the downside, immediate support is seen at 1.0706 (23.6% fib), a break below could take the pair towards 1.0679(Lower BB).
GBP/USD: Sterling declined against dollar on Thursday after the Bank of England left rates unchanged in a dovish decision . The Bank of England kept its main interest rate unchanged at a 16-year high of 5.25% on Thursday ahead of a July 4 election, but some policymakers said their decision not to cut rates was now finely balanced.The BoE's Monetary Policy Committee voted 7-2 to keep rates on hold, in line with economists' expectations in a Reuters poll. Deputy Governor Dave Ramsden and external MPC member Swati Dhingra remained the only policymakers to support a cut to 5%.BoE Governor Andrew Bailey said in a statement alongside the decision that it was "good news" that the latest inflation data had shown inflation was back at its 2% target, but that it was too soon to cut rates. Immediate resistance can be seen at 1.2754(23.6%fib), an upside break can trigger rise towards 1.2808(Higher BB).On the downside, immediate support is seen at 1.2676(38.2%fib), a break below could take the pair towards 1.2602(50% fib).
USD/CAD: The Canadian dollar was little changed against its broadly stronger U.S. counterpart on Thursday as oil prices rose and traders managed their positions in advance of large option expiries. Canadian dollar options with a notional value of $1.2 billion and strikes between 1.3710 and 1.3720 are due to expire on Friday. Canadian retail sales data for April, due on Friday, could offer clues on the strength of the domestic economy. Economists expect an increase in sales of 0.7% from March. The price of oil, one of Canada's major exports, climbed to a seven-week high. U.S. crude oil futures were up 0.7% at $82.15 a barrel.The loonie was trading nearly unchanged at 1.37 to the U.S. dollar, or 72.99 U.S. cents, after touching its strongest intraday level since June 12 at 1.3685.Immediate resistance can be seen at 1.3729 (23.6%fib), an upside break can trigger rise towards 1.3759 (June 18th high).On the downside, immediate support is seen at 1.3689 (38.2%fib), a break below could take the pair towards 1.3637 (50%fib).
USD/JPY: The dollar rose to a seven-week high against the yen on Thursday as traders watched for more data bolstering the case for a Federal Reserve rate cut this year. May retail sales released this week were tepid and the labor market appears to be weakening. The number of Americans filing new claims for unemployment benefits fell last week, but was still more than expected, data released on Thursday showed, indicating the jobs market remained strong despite a gradual cooling.The dollar hit its highest since April 29 against the yen and was last up 0.51% at 158.89 yen in New York trading. Traders remain on alert for signs of continued intervention by the Bank of Japan to boost a currency that hit 34-year lows in late April. Strong resistance can be seen at 158.70(23.6%fib), an upside break can trigger rise towards 159.13(Higher BB).On the downside, immediate support is seen at 157.46(38.2% fib), a break below could take the pair towards 156.24 (50%fib).
Equities Recap
European shares advanced on Thursday with broad-based gains as markets tracked a global upbeat sentiment, while shares of British, Swiss and Norwegian stocks were in focus after their respective central bank decisions.
UK's benchmark FTSE 100 closed up by 0.85 percent, Germany's Dax ended up by 0.95 percent, France’s CAC finished the day up by 1.34 percent.
Wall Street shares pulled back from record highs hit early on Thursday in sympathy with rallying overseas indexes, as Treasury yields shook off soft U.S. data and rose anticipating new supply next week.
Dow Jones closed up by 0.77% percent, S&P 500 closed down by 0.25 % percent, Nasdaq settled down by 0.81% percent.
Commodities Recap
Gold prices rose more than 1% on Thursday to their highest level in two weeks, as recent U.S. economic data showing signs of a slowdown in the world's largest economy boosted bets for interest rate cuts from the Federal Reserve this year.
Spot gold was up 1.4% at $2,358.79 per ounce as of 02:06 p.m. ET (1806 GMT), its highest since June 7. U.S. gold futures settled 0.9% higher at $2,369.
Crude oil futures slid on the prospect of higher-for-longer interest rates in Asia and the United States, while falling U.S. oil inventories kept prices from moving lower.
Oil futures climbed on Thursday after the U.S. Energy Information Administration (EIA) reported a draw on crude oil and data showing a cooling jobs market that stoked hopes the Federal Reserve could cut interest rates soon.
Brent crude futures settled at $85.71 a barrel, up 64 cents or 0.75%. The session high of $85.89 was the highest since May 1.
U.S. West Texas Intermediate (WTI) futures for July , which expire on Thursday, finished at $82.17 a barrel, up 60 cents, or 0.74%.
