Market Roundup
• US May Richmond Manufacturing Index 0, -6 forecast,-7 previous
• US May Richmond Services Index 3,-13 previous
• US May Richmond Manufacturing Shipments 13, -10 previous
•US May Dallas Fed Services Revenues 0.3 previous
•US May Texas Services Sector Outlook -10.6 previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Private New Capital Expenditure (QoQ) (Q1) 0.6% forecast, 0.8% previous
•01:30 Australia Building Capital Expenditure (MoM) (Q1) 1.5% previous
•01:30 Australia Plant/Machinery Capital Expenditure (QoQ) (Q1) -0.1% previous
•01:30 Australia Building Approvals (YoY) -2.50% previous
•01:30 Australia Apr Private House Approvals 3.8% previous
previous Building Approvals (MoM) 1.8% forecast, 1.9% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Wednesday as European currency dropped following German regional inflation data. German inflation rose slightly more than expected to 2.8% in May, preliminary data showed on Wednesday, a sign that price pressures remain present in Europe's largest economy.Analysts polled by Reuters had forecast a reading of 2.7%, after a year-on-year increase in consumer prices of 2.4% in April, based on data harmonised to compare with other European Union countries. In Germany, cooling energy and food prices have had an easing effect on inflation this year but core inflation, which excludes those more volatile elements, has remained high. The common currency was last down 0.49% at $1.0804. Immediate resistance can be seen at 1.0892(23.6%fib), an upside break can trigger rise towards 1.0909(Higher BB).On the downside, immediate support is seen at 1.0814 (38.2% fib), a break below could take the pair towards 1.0759(50% fib).
GBP/USD: The pound eased on Wednesday as dollar held firm boosted by higher U.S. yields ahead of key inflation data later in the week. The U.S. core personal consumption expenditures (PCE) price index report, the Federal Reserve's preferred inflation gauge, is scheduled for release on Friday. Expectations are that it will remain stable on a monthly basis.The pound has been supported by signs that the British economy is picking up, while the Bank of England is unlikely to cut rates before August at the earliest. The pound weakened to $1.2702 a day after hitting a two-month high. Immediate resistance can be seen at 1.2773(23.6%fib), an upside break can trigger rise towards 1.2817(Higher BB).On the downside, immediate support is seen at 1.2737(Daily low), a break below could take the pair towards 1.2695(38.2% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as concern that central banks could leave interest rates at elevated levels longer than previously thought raised demand for the safe-haven greenback. The U.S. dollar rose against a basket of major currencies and the price of oil, one of Canada's major exports, gave back some recent gains. U.S. crude oil futures were down 0.7% at $79.26 a barrel. Investors were awaiting Canadian gross domestic product data on Friday, expected to show the economy expanding at an annualized rate of 2.2% in the first quarter. The loonie was trading 0.5% lower at 1.3710 to the U.S. dollar, or 72.94 U.S. cents, after moving in a range of 1.3642 to 1.3717. Immediate resistance can be seen at 1.3753 (23.6% fib), an upside break can trigger rise towards 1.3765 (Higher BB).On the downside, immediate support is seen at 1.3699(38.2% fib), a break below could take the pair towards 1.3654 (50% fib).
USD/JPY: The dollar eased against yen on Wednesday, boosted by higher U.S. bond yields ahead of key inflation data later in the week. Revised U.S. GDP figures are due later on Friday, followed on Friday by the main macro event of this week, the release of the Personal Consumption Expenditure. The dollar index , which measures the currency against six major peers, including the euro, sterling and the Japanese yen, reached the highest since May 14 at 105.15 on Thursday, following a 0.5% advance in the prior sessiones (PCE) price index the Fed's preferred measure of inflation.The yen , climbed off a four-week low of 157.715 per dollar from overnight to last trade at 157.505. Strong resistance can be seen at 157.40(23.6%fib), an upside break can trigger rise towards 157.89(Higher BB).On the downside, immediate support is seen at 155.77(50% fib), a break below could take the pair towards 155.00(Psychological level).
Equities Recap
European shares declined on Wednesday as worries that global interest rates will stay elevated for longer pushed bond yields higher, with fresh evidence of persistently high inflation in the region's biggest economy only exacerbating such concerns.
The UK's benchmark FTSE 100 closed down by 0.86 percent, Germany's Dax ended down by 1.09 percent, and France’s CAC finished the down by 1.52 percent.
U.S. stocks fell on Wednesday amid further gains in Treasury yields and concern over the timing and scale of possible interest rate cuts from the Federal Reserve.
Dow Jones was down by 1.06 percent, S&P 500 was down 0.74 percent, Nasdaq was down by 0.58 percent.
Commodities Recap
Spot gold lost 1.01% to $2,337.07 an ounce as a stronger dollar, higher bond yields and hawkish comments from a Fed official on Tuesday still weighed on sentiment.
Oil prices eased on worries over weak U.S. gasoline demand and concerns the Fed will keep interest rates higher for longer.
U.S. crude settled down 0.75% at $79.23 a barrel and Brent fell 0.74% at $83.60 per barrel.
