America’s Roundup: US dollar weakens on soft labor market data, Wall Street end mixed, Gold hits near 2-week high, Oil prices rise on deep weekly draw in US crude inventories

Market Roundup

• US Jun ADP Nonfarm Employment Change  150K, 163K forecast ,152K previous

•Canada May Imports 64.37B,65.50B previous

•Canada May Exports  62.45B, 64.45B previous

•    Canada May Trade Balance-1.93B, -1.30B forecast ,-1.05B previous

•US May Trade Balance -75.10B, -76.30B  forecast ,-74.60B previous

•12:30   US Initial Jobless Claims238K, 234K forecast ,233K previous

•US Continuing Jobless Claims 1,858K,1,840K forecast ,1,839K previous

•US Jobless Claims 4-Week Avg. 238.50K, 236.00K previous

•US S&P Global Composite PMI 54.8, 54.6 forecast ,54.5 previous

•US Jun Services PMI  55.3,55.1 forecast ,54.8 previous

•US May Factory orders ex transportation (MoM)  0.3% forecast ,0.7% previous

•US Durables Excluding Transport (MoM)  -0.1% ,-0.1% previous

• US ISM Jun Non-Manufacturing PMI 48.8,52.6                forecast ,53.8 previous

Looking Ahead Economic Data(GMT)

• 01:30 Australia May Building Approvals (YoY)  27.30% forecast ,27.30% previous

•01:30   Australia Imports (MoM) -7.2% previous

•01:30   Australia Trade Balance 6.200B, 6.548B previous

•01:30   Australia Exports (MoM) -2.5% previous

Looking Ahead Events And Other Releases(GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro strengthened against dollar on Wednesday   soft labor market data that buoyed investor expectations of Federal Reserve interest rate cuts later this year.U.S. Labor Department data on Wednesday showed that initial claims for unemployment rose to 238,000 the week that ended June 29, slightly above expectations and indicating a softening in labor market conditions. The market now sees a 68% chance of the Fed cutting interest rates in September. Fed officials at their last meeting acknowledged the U.S. economy appeared to be slowing and that "price pressures were diminishing," according to minutes of the two-day session held on June 11-12.Investors now look forward to the nonfarm payrolls report due on Friday for more clarity on U.S. rate cuts. Immediate resistance can be seen at 1.0766(38.2% fib), an upside break can trigger rise towards 1.0807(23.6% fib).On the downside, immediate support is seen at 1.0732(50% fib), a break below could take the pair towards 1.0703(61.8% fib).

GBP/USD: The pound strengthened against   dollar on Wednesday as dollar dipped as soft U.S. data suggested that the labor market was softening. Both the ADP Employment report and weekly jobless claims data pointed to easing labor market conditions ahead of Friday's closely watched non-farm payrolls report. Markets hope signs of weakness in the labor market will encourage the Fed to cut interest rates.Also, PMI data from the Institute for Supply Management was weaker than expected, and factory orders unexpectedly slumped. Investors boosted bets of a September rate cut to over 70%. Immediate resistance can be seen at 1.2698(38.2%fib), an upside break can trigger rise towards 1.2749(23.6%fib).On the downside, immediate support is seen at 1.2643(50%fib), a break below could take the pair towards 1.2599(61.8% fib).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday higher oil prices and weaker greenback boosted Canadian dollar. Oil prices steadied after trading higher on a bigger than expected drawdown in U.S. crude stockpiles, while economic headwinds from China and the euro zone capped gains.Brent crude futures edged up 0.16% to $86.40 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 0.11% to $82.94. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.45% at 105.19. The loonie   was trading 0.1% higher at C$1.3655 to the greenback, or 73.23 U.S. cents, after trading in a range of 1.3652 to 1.3686. .Immediate resistance can be seen at 1.3674 (38.2%fib), an upside break can trigger rise towards 1.3712(50%fib).On the downside, immediate support is seen at 1.3630(23.6%fib), a break below could take the pair towards 1.3607 (Lower BB).

USD/JPY: The U.S. dollar hit a new 38-year high to the yen on Wednesday as  Japanese officials largely remained on the sidelines amid the risk of intervention. Japanese authorities have been largely quiet on the yen this week, with Finance Minister Shunichi Suzuki only commenting on Tuesday that moves were being watched vigilantly. He refrained from repeating the oft-used warning that the ministry stood ready to act. Atsushi Mimura is taking over as the ministry of finance's currency czar at the end of this month, replacing Masato Kanda, who oversaw the 9.8 trillion yen ($60.67 billion) round of intervention spanning several days in late April and early May, when the currency plunged to 160.82 per dollar. The yen slid about 0.2% to reach 161.62 per dollar for the first time since December 1986. Strong resistance can be seen at 161.85(Daily high), an upside break can trigger rise towards 162.00(Psychological level).On the downside, immediate support is seen at 159.92 (38.2% fib), a break below could take the pair towards 158.49(50%fib).

Equities Recap

European shares rose on Wednesday, as dovish comments from Federal Reserve Chair Jerome Powell and fresh U.S. economic data firmed rate cut expectations, while investors awaited the second round of the French vote and national elections in the UK.

UK's benchmark FTSE 100 closed up by  0.61 percent, Germany's Dax ended down by 1.19 percent, France’s CAC finished the day up  by 1.21 percent.                       

The S&P 500 index and technology-laden Nasdaq rose on Wednesday to post record high closes, as data pointing to a softening economy raised hopes the Federal Reserve could cut interest rates in September.

Dow Jones closed down  by 0.06 % percent, S&P 500 closed up by 0.51% percent, Nasdaq settled up  by  0.88 % percent.

Commodities Recap

Gold prices rose more than 1% to a near two-week high on Wednesday, driven by increased bets for a September interest rate cut by the Federal Reserve after recent U.S. data suggested that the labor market was softening.

Spot gold was up 1.2% at $2,357.06 per ounce by 02:08 a.m. ET (1808 GMT). U.S. gold futures settled 1.5% higher to $2369.40.

Oil prices gained about 1% on Wednesday after a larger-than-expected decline in U.S. crude stocks, but gains were capped by concerns about rising global inventories in thin trading ahead of the U.S. Independence Day holiday.

Brent crude futures rose $1.10, or 1.3%, to settle at $87.34 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained $1.07, or 1.3%, to $83.88.