Market Roundup
• US Initial Jobless Claims (Jul 4) 215K, 218K forecast, 217K previous.
•US Existing Home Sales (Jun) 4.09M, 4.19M forecast, 4.19M previous.
•US Existing Home Sales (MoM) (Jun) -2.4%, 3.7% previous.
•US Natural Gas Storage 61B, 60B forecast, 87B previous.
Looking Ahead Economic Data (GMT)
• No data ahead
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro edged higher on Thursday as the U.S. and Iran carried out renewed attacks, while a stable reading on the labor market kept investor attention on potential inflation pressures.Iranian armed forces launched attacks on U.S. military infrastructure in neighbouring Gulf states following U.S. strikes on Iran's southern coastal and eastern provinces, further straining a three-week-old ceasefire agreement.Oil prices eased from earlier highs, however, with U.S. crude CLc1 last down 2.65% to $71.57 a barrel and Brent at $75.72 per barrel, down 2.95% on the day, as concerns about higher inflation denting global growth outweighed supply worries.. Immediate resistance can be seen at 1.1475(SMA 20), an upside break can trigger rise towards 1.1495(50%fib).On the downside, immediate support is seen at 1.1368(38.2%fib), a break below could take the pair towards 1.1291(Lower BB).
GBP/USD: The pound firmed on Thursday as investors grappled with renewed Middle East tensions.The U.S. military said on Wednesday its latest strikes were aimed at keeping the Strait of Hormuz open after it said Iranian forces had struck three tankers in the area. The assault came hours after U.S. President Donald Trump said he believed the interim ceasefire with Iran to be "over".Iranian armed forces launched attacks on U.S. military infrastructure in Gulf states on Thursday following U.S. strikes on Iran's southern coastal and eastern provinces, putting further strain on a three-week-old ceasefire agreement. Immediate resistance can be seen at 1.3470(50%fib), an upside break can trigger rise towards 1.3516(Higher BB).On the downside, immediate support is seen at 1.3393(Daily low), a break below could take the pair towards1.3328(50%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday as recent domestic data helped ease negative sentiment around the currency, offsetting a pullback in oil prices.Data on Tuesday showed that Canadian exports rose for the fourth consecutive month in May, adding to evidence that the economy recovered in the second quarter after two consecutive quarters of contraction. Canadian employment data for June, due on Friday, could offer additional clues on the strength of the domestic economy. Economists expect a jobs gain of 10,000 and the unemployment rate to hold steady at 6.6%.Immediate resistance can be seen at 1.4166(SMA 20), an upside break can trigger rise towards 1.4265(23.6%fib).On the downside, immediate support is seen at 1.4128(38.2%fib), a break below could take the pair towards 1.4026(50%fib).
USD/JPY: The U.S. dollar slipped lower on Thursday as renewed conflict between the United States and Iran kept investors cautious. The U.S. military confirmed it had carried out a second consecutive day of strikes on targets in Iran, marking a further escalation in tensions between the two countries. In response, Tehran warned it was preparing a large-scale retaliatory operation against U.S. military bases across the region, heightening fears of a broader conflict.Meanwhile, The Bank of Japan said the Iran war islikely to goad more firms to raise prices later this year, signaling caution over mounting inflationary pressures that could bolster the case for further rate hikes. Immediate resistance can be seen at 161.67(SMA20) an upside break can trigger rise towards 162.00(Psychological level) .On the downside, immediate support is seen at 160.81(38.2%fib) a break below could take the pair towards 159.58(50%fib).
Equities Recap
European shares rose on Thursday, snapping a three-session losing streak, as a rebound in technology stocks helped offset persistent concerns over the ongoing conflict in the Middle East.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended down by 0.89 percent, France’s CAC finished the day up by 0.90 percent.
The Nasdaq closed sharply higher on Thursday as a rally in semiconductor stocks, led by Micron Technology, outweighed concerns that renewed U.S. and Iranian military strikes could prolong the Middle East conflict and stoke inflationary pressures.
Dow Jones closed up by 0.27% percent, S&P 500 closed up by 0.81 % percent, Nasdaq settled up by 1.30% percent.
Commodities Recap
Gold rose more than 1% on Thursday as bargain hunting emerged after prices fell to a one-week low, while investors kept a close watch on developments in the Middle East.
Spot gold XAU= rose 1.3% to $4,130.58 per ounce by 2:05 p.m. EDT (1805 GMT), after dropping to its lowest level since July 1 on Wednesday.
U.S. gold futures for August delivery settled 1.4% higher at $4,140.80 per ounce.
U.S. crude was last down 2.14% at $71.94 a barrel, while Brent dipped 2.44%, sliding to $76.12 per barrel.
