Market Roundup
• Unit Labor Costs (QoQ) (Q1) 11.6%, 9.9% forecast, 0.9% previous
•US Nonfarm Productivity (QoQ) (Q1) -7.5%,-5.4% forecast, 6.6% previous
•US Initial Jobless Claims 200K, 182K forecast, 180K previous
•US Continuing Jobless Claims 1,384K, 1,400K forecast, 1,408K previous
•US Jobless Claims 4-Week Avg 188.00K,179.75K previous
•US Natural Gas Storage77B,68B, 40B previous
•US 4-Week Bill Auction 0.490%,0.480% previous
•US 8-Week Bill Auction 0.710%, 0.710% previous
Looking Ahead - Economic Data (GMT)
•07:00 Australia MI Inflation Gauge (MoM)
Looking Ahead - Economic events and other releases (GMT)
•06:55 Australia RBA Monetary Policy Statement
Fxbeat
EUR/USD: The euro declined against the U.S. dollar on Thursday after German data showed that industrial orders in March suffered their biggest monthly drop since last October. Orders for industrial goods dropped 4.7% on the month in seasonally adjusted terms after an upwardly revised decline of 0.8% in February, figures from the Federal Statistical Office showed. The single currency has fallen as the region struggles with weaker growth and energy disruptions due to sanctions imposed on Russia after its invasion of Ukraine.It fell to $1.0518, down 0.98%, and is holding just above a five-year low of $1.0470 reached last Thursday. Immediate resistance can be seen at 1.0522(5DMA), an upside break can trigger rise towards 1.0614(38.2%fib).On the downside, immediate support is seen at 1.0516(23.6%fib), a break below could take the pair towards 1.0443(Lower BB).
GBP/USD: Sterling fell to its lowest level since June 2020 after the Bank of England raised interest rates to their highest since 2009 but warned that the economy was at risk of recession. Sterling tumbled more than 2% against the dollar to a low of $1.23615, its lowest since July 2020. . It was set for its biggest one-day fall since March 2020, when the spread of the COVID-19 pandemic wreaked havoc on world markets. The BoE kept its forecast for economic growth this year at 3.75%, but slashed its forecast for 2023 to show a contraction of 0.25% from a previous estimate of 1.25% growth. It cut its growth projection for 2024 to 0.25% from a previous 1.0%. The British currency was last down 2.25% at $1.2374.Immediate resistance can be seen at 1.2419(38.2%fib), an upside break can trigger rise towards 1.2477(50%fib).On the downside, immediate support is seen at 1.2351 (23.6%fib), a break below could take the pair towards 1.2287(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday, as investors awaited a key domestic jobs report and reassessed how much restraint the Federal Reserve could show as it likely hikes interest rates further. The price of oil, one of Canada's major exports, settled0.4% higher at $108.26 a barrel as the European Union laid out plans for new sanctions against Russia, including an embargo on crude in six months, adding to concerns about global supply. The loonie was trading 0.9% lower at 1.2852 to the greenback, or 77.81 U.S. cents, pulling back from its strongest level since April 26 earlier in the day at 1.2713. Immediate resistance can be seen at 1.2887 (23.6%fib), an upside break can trigger rise towards 1.2925 (Higher BB).On the downside, immediate support is seen at 1.2821 (38.2%fib), a break below could take the pair towards 1.2768 (50%fib).
USD/JPY: The dollar steadied against yen on Thursday as a sharp stocks selloff boosted demand for the safe-haven currency and as the Federal Reserve was seen as tightening monetary policy more than peers. The greenback dropped on Wednesday, and stocks gained, after Fed Chair Jerome Powell told reporters that policymakers were not actively considering 75-basis-point moves in the future. The dollar index reached 103.94, the highest since Dec. 2002, before falling back to 103.73, up 1.16% on the day. This week's major U.S. economic release will be the government's jobs report for April released on Friday, while consumer price data is also due on Wednesday. Strong resistance can be seen at 130.34(23.6%fib), an upside break can trigger rise towards 131.69(Higher BB).On the downside, immediate support is seen at 130.02 (5DMA), a break below could take the pair towards 128.94(38.2%fib).
Equities Recap
European stocks fell for the second straight session on Thursday, with most major sectors handing back earlier gains made after less hawkish comments from the Federal Reserve.
UK's benchmark FTSE 100 closed up by 0.13 percent, Germany's Dax ended down by 0.49 percent, France’s CAC finished the day down by 0.43 percent.
U.S. stocks ended Thursday sharply lower amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve's interest rate hike the previous day would not be enough to tame surging inflation.
Dow Jones closed down by 3.12% percent, S&P 500 closed down by 3.56% percent, Nasdaq settled down by 4.99% percent.
Commodities Recap
Oil prices edged up on Thursday on supply worries after the European Union (EU) laid out plans for new sanctions against Russia including an embargo on crude.
Brent futures rose 76 cents, or 0.7%, to settle at $110.90 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 45 cents, or 0.4%, to settle at $108.26.
Gold prices fell on Thursday, giving up some gains from a more than 1% rise, as a bounce in the dollar offset support for bullion from a relatively less hawkish stance on interest rate hikes from the U.S. Federal Reserve.
Spot gold fell 0.3% to $1,876.13 per ounce by 1:43 p.m. ET (1743 GMT), having earlier hit its highest since April 29. U.S. gold futures settled up 0.4% at $1,875.7.
