America’s Roundup: Dollar index weakens, Wall Street stocks dip,Gold pare gains,Oil prices settle higher

Market Roundup

•US  Jun Goods Trade Balance -98.80B forecast,-99.37B previous

•Canada Jun New Housing Price Index (MoM) -0.2%,  0.1% forecast,0.2% previous

•Canada Jun Retail Inventories Ex Auto 0.2%,00   previous

• US Wholesale Inventories (MoM) 0.2%, 0.5% forecast,   0.6% previous

• US Building Permits (MoM) 3.9%,3.4%  forecast,-2.8% previous

• US Building Permits 1.454M, 1.446M forecast,1.399M previous

• Canada BoC Interest Rate Decision 4.50%, 4.50% forecast, 4.75% previous

• US  Jul Services PMI  56.0, 54.7 forecast,55.3 previous

• US  Jul Manufacturing PMI 49.5, 51.7 forecast,51.6 previous

• US  Jun New Home Sales  617K, 639K   forecast ,619K previous

• US  Jun New Home Sales (MoM) -0.6%   ,-11.3% previous

• US  Crude Oil Inventories -3.741M, -2.600M forecast ,-4.870M previous

Looking Ahead Economic Data(GMT)

•23:50   Japan Corporate Services Price Index (CSPI) (YoY) 2.6% forecast ,2.5% previous

•23:50   Japan Foreign Investments in Japanese Stocks 227.6B previous

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro fell against the dollar on Wednesday after data showed eurozone business activity stalled this month. A key survey revealed a further slowdown in July, nearing stagnation due to a weak manufacturing sector. The HCOB Flash Eurozone PMI, published by S&P Global, dropped to 50.1 from 50.9 in June, its lowest in five months. A reading above 50 indicates growth, while below 50 shows contraction. Economists said this data points to a sluggish recovery for the eurozone. The dollar index , which measures the greenback against a basket of six currencies, including the yen and the euro, fell 0.12% to 104.35. Immediate resistance can be seen at 1.0865(38.2%fib), an upside break can trigger rise towards 1.0909 (23.6%fib).On the downside, immediate support is seen at 1.0825(50%fib), a break below could take the pair towards 1.0790(61.8%fib).

GBP/USD: Sterling was little changed against dollar on Wednesday after data showed British business activity picked up this month. British business activity picked up this month, bolstered by the fastest manufacturing growth in two years and the strongest inflow of new orders since April 2023, PMI survey data showed Wednesday. The pound has been supported in recent months by better-than expected economic data, some stability from a new government, and also the Bank of England being slower to cut rates than some peers, including the European Central Bank, due to fears about sticky services inflation.The BoE next meets in August, and markets see around a 45% chance of them cutting rates.Immediate resistance can be seen at 1.2953(38.2%fib), an upside break can trigger rise towards 1.3020(23.6%fib).On the downside, immediate support is seen at 1.2886(50%fib), a break below could take the pair towards 1.2824(61.8%fib).

 USD/CAD: The Canadian dollar fell to a three-month low against the U.S. dollar on Wednesday after the Bank of Canada cut interest rates for the second time in two months and hinted at further easing. The central bank lowered its benchmark rate by 25 basis points to 4.5%, indicating more cuts could follow if inflation continues to decline as expected. In June, the BoC was the first G7 central bank to begin easing policy. Investors see a roughly 50% chance of another rate cut at the next policy announcement in September and 43 basis points of additional easing in total this year.The Canadian dollar was trading 0.1% lower at 1.3790 to the U.S. dollar, or 72.52 U.S. cents, after touching its weakest intraday level since April 17 at 1.3807. It was the currency's sixth straight day of declines. Immediate resistance can be seen at 1.3816(23.6%fib), an upside break can trigger rise towards 1.3820(Higher BB).On the downside, immediate support is seen at 1.3782 (38.2%fib), a break below could take the pair towards 1.3753 (50%fib).

USD/JPY: The dollar fell to its lowest in more than two months against the yen on Wednesday as short-yen carry trades were unwound ahead of next week's Bank of Japan meeting. The BOJ meets on July 31 to set monetary policy and a very mixed bag of economic data means the chances of a hike from 0.1% are about 50/50. Recent rounds of suspected currency intervention have speculators rushing to close what had been profitable carry trades, where they borrowed in low-yielding yen and invested in assets of currencies with higher rates. The yen is the best performing G-10 currency against the dollar in July so far.The dollar weakened 1.07% to 153.92, hitting its lowest since May 6.   Strong resistance can be seen at 155.25(38.2%fib), an upside break can trigger rise towards 156.56(50%fib). On the downside, immediate support is seen at 153.72 (23.6%fib), a break below could take the pair towards 153.00 (Psychological Level).

Equities  Recap

European shares closed lower on Wednesday, weighed down by poor results from LVMH affecting luxury stocks and lackluster corporate earnings in sectors like banking, contributing to the overall downbeat mood.

UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended down  by 0.92 percent, France’s CAC finished the day down by 1.13percent.

The S&P 500 and Nasdaq closed at multi-week lows on Wednesday, with the S&P breaking its long streak of avoiding daily declines over 2% as lackluster earnings from Alphabet and Tesla undermined investor confidence in megacap stocks..

Dow Jones closed down  by  1.25% percent, S&P 500 closed down by 2.31% percent, Nasdaq settled down by3.62%  percent.

Commodities Recap

  prices slipped after paring early gains. Spot gold lost 0.45% to $2,398.45 an ounce, while U.S. gold futures settled 0.3% higher at $2,415.70.

Oil prices settled higher due to falling U.S. crude inventories and rising supply risks from Canadian wildfires, but remained near month-and-a-half lows due to weak demand.

Brent crude futures closed 0.9% higher at $81.71 a barrel. U.S. West Texas Intermediate crude rose 0.8% to $77.59 per barrel.