Market Roundup
•US Apr PPI (MoM) 0.5%,0.5% forecast, 1.4% previous
•US Apr PPI (YoY) 11.0%,10.7% forecast,11.2% previous
•US Apr Core PPI (MoM) 0.4%,0.6% forecast, 1.0% previous
•US Apr Initial Jobless Claims 192.75K, 195K forecast, 200K previous
•US Continuing Jobless Claims 1,343K,1,380K forecast, 1,384K previous
•US Jobless Claims 4-Week Avg 192.75K ,188.00K previous
•UK NIESR GDP Estimate 0.3%,-2.5% previous
•Natural Gas Storage 76B, 79Bforecast,77B previous
•US 4-Week Bill Auction 0.600%,0.490% previous
•US 8-Week Bill Auction 0.755% , 0.710% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
• 02:00 Australia RBA Assist Gov Bullock Speaks
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Thursday as intensifying global risk aversion over war, inflation and diminishing economic growth prospects sent investors scrambling into the safe-haven dollar. The souring sentiment dealt a particularly harsh blow to the euro since it is exposed to Ukraine war risks and China's COVID-related economic disruptions.On the data front, The U.S. Labor Department said the producer price index for final demand rose 0.5% in April, slower than the 1.6% surge in March, as rising costs of energy products moderated. The euro down 1.38% to $1.0366 after falling to 1.0352, its lowest since Jan. 3, 2017.Immediate resistance can be seen at 1.0465 (38.2%fib), an upside break can trigger rise towards 1.0510 (5DMA).On the downside, immediate support is seen at 1.0355(23.6%fib), a break below could take the pair towards 1.0315 (Lower BB).
GBP/USD: Sterling fell to a fresh two-year low versus a strengthening U.S. dollar on Thursday after a slew of economic data pointed to the weakening of the economy. Britain's economy unexpectedly shrank 0.1% in March after a slump in car sales due to supply-chain problems. Data also showed British employers added permanent staff last month at the weakest rate in more than a year suggesting the labour market might be cooling, according to a survey that will be noted by the Bank of England as it assesses inflation pressure. Immediate resistance can be seen at 1.2255(Daily high), an upside break can trigger rise towards 1.2299(38.2%fib).On the downside, immediate support is seen at 1.2174 (23.6%fib), a break below could take the pair towards 1.2094(Lower BB).
USD/CAD : The Canadian dollar extended recent declines against its U.S. counterpart on Thursday as investors grew more worried about the global economy and the Bank of Canada played down prospects of interest rates rising by more than half a percentage point in any one move. Meanwhile, Bank of Canada Deputy Governor Toni Gravelle said the Canadian central bank's policy rate, at 1%, is "too stimulative" given soaring inflation and needs to return to more neutral levels quickly. The loonie was trading 0.6% lower at 1.3070 to the greenback, or 76.51 U.S. cents, after touching its weakest level since November 2020 at 1.3076..Immediate resistance can be seen at 1.3056(23.6%fib), an upside break can trigger rise towards 1.3115 (Higher BB).On the downside, immediate support is seen at 1.3018 (5DMA), a break below could take the pair towards 1.2944 (38.2%fib).
USD/JPY: The dollar steadied against yen on Thursday as concerns persisted that central bank actions to drive down high inflation would crimp global economic growth, boosting the safe-haven appeal for dollar. Data from the Labor Department showed weekly initial jobless claims rose to their highest level in three months, although the labor market remains a strength of the U.S. economy. On the inflation front, the producer price index showed a sharp deceleration in April to a 0.5% rise from the 1.6% surge the prior month. The dollar index rose 0.798% at 104.840 after touching 104.92, its highest level since Dec. 12, 2002. Strong resistance can be seen at 129.59 (23.6%fib), an upside break can trigger rise towards 130.00(Psychological level).On the downside, immediate support is seen at 128.41(38.2%fib), a break below could take the pair towards 126.83(Lower BB).
Equities Recap
European stocks slumped on Thursday, with most cyclical parts of the market coming back down, a day after U.S. inflation data fuelled worries about the impact of rising interest rates on economic growth.
UK's benchmark FTSE 100 closed down by 1.56 percent, Germany's Dax ended down by 0.64 percent, France’s CAC finished the day down by 1.01 percent.
U.S. stocks ended a whipsaw session slightly lower on Thursday, as investors juggled signs of peaking inflation with fears that it could remain elevated, prompting ever more aggressive tightening from the Federal Reserve.
Dow Jones closed down by 0.33% percent, S&P 500 closed by 0.13% percent, Nasdaq settled up by 0.6% percent.
Treasuries Recap
U.S. Treasury yields slid on Thursday as the bond market assessed whether the Federal Reserve can keep the economy from lurching into recession as it slams the brakes on a rising pace of inflation despite showing signs of moderation.
The yield on 10-year Treasury notes fell 4.3 basis points to 2.870% as the benchmark U.S. government bond pared losses after sinking to a morning low of 2.8173%.
Commodities Recap
Gold and other precious metals dropped on Thursday, with palladium shedding more than 8%, as investors flocked to the dollar driven by bets the U.S. Federal Reserve will stick to aggressive rate hikes.
Spot gold fell 1.6% to $1,823.14 per ounce by 01:51 p.m. EDT (1751 GMT). U.S. gold futures settled down 1.6% at $1,824.60.
Oil prices settled mixed on Thursday as supply concerns and geopolitical tension in Europe got the upper hand over the economic fears dogging financial markets as inflation soars.
Brent crude fell 6 cents to settle at $107.45 a barrel. WTI crude rose 42 cents, or 0.4%, to settle at $106.13.
