Market Roundup
•US Jobless Claims 4-Week Avg. 227.00K,222.25K previous
•US Continuing Jobless Claims1,820K,1,800K forecast,1,792K previous
•US Initial Jobless Claims242K,225K forecast,229K previous
•US May Core PPI (YoY) 2.3%,2.4% forecast, 2.4% previous
•US Core PPI (MoM) 0.0%,0.3% forecast,0.5% previous
•US May PPI (YoY) 2.2%,2.5% forecast,2.2% previous
•US May PPI ex. Food/Energy/Transport (MoM) 0.0%,0.4% previous
•US May PPI (MoM) -0.2%,0.1% forecast,0.5% previous
•US 4-Week Bill Auction 5.260%, 5.270% previous
•US 8-Week Bill Auction 5.265% ,5.265% previous
Looking Ahead Economic Data(GMT)
•04:30 Japan Apr Capacity Utilization (MoM) 1.3% previous
•04:30 Japan Apr Tertiary Industry Activity Index 0.40 forecast,12.70 previous
•04:30 Japan Apr Industrial Production (MoM) -0.1% forecast, 4.4% previous
Looking Ahead Events And Other Releases (GMT)
• 02:30 Japan BoJ Monetary Policy Statement
•03:00 Japan BoJ Interest Rate Decision 0.10% forecast,0.10% previous
Currency Summaries
EUR/USD: The euro edged lower on Thursday after Eurozone industrial output fell unexpectedly In April. Eurozone industrial production dropped unexpectedly in April on falling intermediate goods output, official data showed Thursday.Industrial output logged a monthly fall of 0.1 percent, marking the first drop in three months, Eurostat said. Production was forecast to grow 0.2 percent after rising 0.5 percent in March. Uncertainty over European elections is also likely to hurt the euro against the greenback. Far-right parties gained ground in European Parliament elections on Sunday, prompting French President Emmanuel Macron to call a snap election in his country. The euro was last down 0.65% at $1.0739. It fell as low as $1.07195 on Tuesday, the lowest since May 2nd. Immediate resistance can be seen at 1.0766(Daily high), an upside break can trigger rise towards 1.0809(38.2% fib).On the downside, immediate support is seen at 1.0726 (50% fib), a break below could take the pair towards 1.0671(61.8% fib).
GBP/USD: The pound declined on Thursday as concerns over stagflation in the British economy weighed on pound .Data this week has painted a fairly stagflationary picture for the British economy, with wage growth still running hot, while economic growth had completely stalled in April.Traders expect at least one rate cut from the Bank of England this year, but the jury is out on whether or not there will be a second.The BoE meets next week. Futures markets currently show traders are placing a 75% chance of a cut by September, with a cut fully priced in for November. Sterling eased 0.2% to $1.277, having gained 0.5% the day before. Immediate resistance can be seen at 1.2790(23.6%fib), an upside break can trigger rise towards 1.2823(Higher BB).On the downside, immediate support is seen at 1.2704(38.2%fib), a break below could take the pair towards 1.2629(50% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as the greenback notched gains against a basket of major currencies and the Bank of Canada reiterated it could cut interest rates further. Speaking to a conference in Ottawa on Thursday, BoC Deputy Governor Sharon Kozicki stuck to the central bank's messaging that further cuts would follow if inflation continued to ease, but the policy decisions would be taken one meeting at a time.Money markets see a 55% chance of a rate cut at the BoC's next policy decision on July 24.The price of oil , one of Canada's major exports, settled 0.15% higher at $78.62 a barrel, while Canadian government bond yields moved lower across the curve, tracking moves in U.S. Treasuries. .Immediate resistance can be seen at 1.3747(23.6%fib), an upside break can trigger rise towards 1.3786 (Higher BB).On the downside, immediate support is seen at 1.3723 (38.2%fib), a break below could take the pair towards 1.3698(50%fib).
USD/JPY: The dollar gained on Thursday despite a soft U.S. producer price inflation report for May, after the Federal Reserve adopted a hawkish tone at the conclusion of its meeting on Wednesday.Data on Thursday showed that U.S. producer prices unexpectedly fell in May, with the headline producer price index (PPI) dropping 0.2% last month after advancing by an unrevised 0.5% in April. Core prices were flat, after also seeing a 0.5% increase the prior month . Other data on Thursday showed that the number of Americans filing new claims for unemployment benefits increased to a 10-month high last week. The dollar index was last up 0.49% at 105.20. It reached a four-week high of 105.46 on Tuesday, before dropping as much as 1% after Wednesday's CPI data. The dollar was last up 0.11% at 156.89 yen.Strong resistance can be seen at 157.56(23.6%fib), an upside break can trigger rise towards 157.93(Higher BB).On the downside, immediate support is seen at 156.23(38.2% fib), a break below could take the pair towards 154.94 (50%fib).
Equities Recap
European shares slipped on Thursday, with automakers falling on continued jitters over the European Union's new tariffs on imported Chinese electric vehicles, while Italian shares underperformed their continental peers.
UK's benchmark FTSE 100 closed down by 0.63 percent, Germany's Dax ended down by 1.97 percent, France’s CAC finished the day down by 1.99 percent.
The Nasdaq and the S&P 500 recorded their fourth consecutive record closing highs on Thursday and U.S. Treasury yields touched their lowest levels since early April as investors reconciled cooler-than-expected inflation data with tempered rate-cut expectations from the Federal Reserve.
Dow Jones closed down by 0.17% percent, S&P 500 closed up by 0.23 % percent, Nasdaq settled up by 0.33% percent.
Commodities Recap
Oil prices rose slightly on Thursday in up-and-down trade, pressured by rising U.S. crude and fuel supplies and expectations of a delayed start to Federal Reserve interest rate cuts but supported by U.S. economic data showing an easing labor market and slowing inflation.
Brent crude futures were up 31 cents, or 0.4%, to $82.91 a barrel by 1:12 p.m. EDT (1712 GMT). West Texas Intermediate (WTI) U.S. crude futures rose 25 cents, or 0.3%, to $78.75. Both benchmarks had gained nearly 1% in the previous session.
