Market Roundup
•US GDP (QoQ) (Q1)1.3%,1.6% forecast,3.4% previous
•US GDP Sales (Q1)1.7%,2.0% forecast,3.9% previous
•US Real Consumer Spending (Q1)2.0% ,2.5% forecast,3.3% previous
•US GDP Price Index (QoQ) (Q1)3.1%,3.1% forecast,1.7% previous
•US Core PCE Prices (Q1)3.60% ,3.70% forecast,2.00% previous
•US PCE Prices (Q1)3.3%, 3.4% forecast,1.8% previous
•US Apr Retail Inventories Ex Auto 0.3% forecast, -0.4% previous
•US Apr Goods Trade Balance -99.41B, -91.90B forecast,-92.29B previous
•US Initial Jobless Claims219K, 218K forecast,216K previous
•US Continuing Jobless Claims 1,791K ,1,800K forecast,1,787K previous
•US Jobless Claims 4-Week Avg.222.50K,220.00K previous
•US Wholesale Inventories (MoM)0.2% ,0.0% forecast,-0.4% previous
•US Natural Gas Storage84B ,77B forecast,78B previous
•US Gasoline Production -0.038M, 0.351M previous
•US Gasoline Inventories 2.022M , 1.000M forecast,-0.945M previous
•US EIA Weekly Distillates Stocks 2.544M, 0.400M forecast,0.379M previous
•US Crude Oil Inventories -4.156M ,-1.600M forecast, 1.825M previous
•US 8-Week Bill Auction 5.275%,5.275% previous
•US 4-Week Bill Auction 5.270% , 5.270% previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Private Sector Credit (MoM) 0.4% forecast, 0.3% previous
•01:30 China May Non-Manufacturing PMI 51.5 forecast, 51.2 previous
•01:30 China May Manufacturing PMI 50.5 forecast, 50.4 previous
•01:30 China May Chinese Composite PMI 51.7 previous
•01:30 Australia Apr Housing Credit 0.4% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar dipped after US economy grew less than previously expected in the first quarter. The U.S. economy grew more slowly in the first quarter than previously estimated after downward revisions to consumer spending and a key measure of inflation ticked down, keeping the Fed on track to possibly begin cutting interest rates at least once before the end of the year. Meanwhile, investors awaited more economic data from the euro zone that will provide insights in the European Central Bank's interest rate path. The euro was up 0.3% at $1.083 after dropping 0.5% on Wednesday to touch a two-week low of $1.0789 overnight. Immediate resistance can be seen at 1.0878(23.6%fib), an upside break can trigger rise towards 1.0908(Higher BB).On the downside, immediate support is seen at 1.0798 (38.2% fib), a break below could take the pair towards 1.0739(50% fib).
GBP/USD: Sterling rose on Thursday after falling sharply the previous day as a jump in U.S. bond yields boosted the dollar. Data released on Thursday by the Commerce Department showed U.S. gross domestic product grew 1.3% January-March, down from an advance estimate of 1.6%, following downward revisions to consumer spending. Meanwhile, jobless claims data from the Labor Department came in at 219,000 in the last week, higher than a forecast by economists polled by of 218,000. The strong U.S. figures, along with better-than-expected UK growth and inflation data in recent weeks, have caused traders to reduce their bets on Bank of England rate cuts this year to 27 basis points, implying just one reduction in 2024. Immediate resistance can be seen at 1.2778(23.6%fib), an upside break can trigger rise towards 1.2817(Higher BB).On the downside, immediate support is seen at 1.2683(38.2%fib), a break below could take the pair towards 1.2621(50% fib).
USD/CAD: The Canadian dollar rebounded from a near one-week low against its U.S. counterpart on Thursday as an indication of cooler U.S. inflation left the door open to Federal Reserve interest rate cuts this year. Investors were awaiting Canadian gross domestic product data on Friday, expected to show the economy expanding at an annualized rate of 2.2% in the first quarter. Still, that would be slower than the Bank of Canada's most recent forecast of 2.8%. The price of oil, one of Canada's major exports, fell 1.8% to $77.77 a barrel ahead of an OPEC+ meeting this weekend.The loonie was trading 0.3% higher at 1.3675 to the U.S. dollar , after earlier touching its weakest level since Friday at 1.3734 .Immediate resistance can be seen at 1.3722 (23.6%fib), an upside break can trigger rise towards 1.3739 (Higher BB).On the downside, immediate support is seen at 1.3669(38.2%fib), a break below could take the pair towards 1.3625(50%fib).
USD/JPY: The U.S. dollar declined against yen on Thursday after revised data showed that gross domestic product - the broadest measure of economic activity - grew at slower pace than previously expected in the first quarter, after the currency rose to a two-week high the previous day.The Commerce Department reported the U.S. economy grew at an 1.3% annualized rate from January through March, down from the advance estimate of 1.6% after downward revisions to consumer spending. The dollar was down 0.53% against the Japanese yen at 156.805 after hitting a one-month high of 157.72 the previous day.Market players suspect Japan intervened to prop up its currency at the end of April and early May, which may be confirmed by data out on Friday. Strong resistance can be seen at 157.40(23.6%fib), an upside break can trigger rise towards 157.89(Higher BB).On the downside, immediate support is seen at 155.77(50% fib), a break below could take the pair towards 155.00(Psychological level).
Equities Recap
European shares closed higher on Thursday as a drop in government bond yields offered some respite while investors awaited global data in the next few days that could offer more clues on where major central banks stand on monetary policy easing.
UK's benchmark FTSE 100 closed up by 0.59 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day up by 0.55 percent.
U.S. stocks ended lower on Thursday, with the Nasdaq falling more than 1% and technology shares leading declines after a disappointing Salesforce forecast.
Dow Jones closed down by 0.86 %percent, S&P 500 closed down by 0.60% percent, Nasdaq settled down by 1.08 % percent.
Commodities Recap
Oil prices fell for the second consecutive session on Thursday, after the U.S. government reported weak fuel demand in the country and a surprise jump in gasoline and distillate fuel stockpiles.
Brent crude futures fell by $1.74, or 2.1% to settle at $81.86 a barrel. U.S. West Texas Intermediate crude futures fell by $1.32, or 1.7%, to $77.91 a barrel.
Spot gold added 0.13% to $2,341.94 an ounce as the dollar and bond yields retreated.
