Market Roundup
•French Apr Industrial Production (MoM) 0.5% ,0.3% forecast,-0.3% previous
•Italian May Composite PMI 52.3,52.6 previous
•Italian May Italian Services PMI 54.2,54.4 forecast,54.3 previous
•French May S&P Global Composite PMI 48.9,49.1 forecast,50.5 previous
• French May Services PMI 49.3,49.4 forecast,51.3 previous
• German May Composite PMI 52.4, 52.2 forecast,50.6 previous
• German May Services PMI 54.2,53.9 forecast,53.2 previous
•EU May Services PMI 53.2,53.3 forecast,53.3 previous
•EU May S&P Global Composite PMI 52.2,52.3 forecast,51.7 previous
•UK May Composite PMI 53.0, 52.8 forecast,54.1 previous
•UK May Services PMI 52.9,52.9 forecast,55.0 previous
Looking Ahead Economic Data(GMT)
•12:30 Canada Labor Productivity (QoQ) (Q1)-0.2% forecast,0.4% previous
•13:45 Canada BoC Interest Rate Decision 4.75% forecast,5.00% previous
•13:45 US May S&P Global Composite PMI 54.4 forecast,51.3 previous
•13:45 US May Services PMI 54.8 forecast,51.3 previous
•14:00 US May ISM Non-Manufacturing Business Activity 50.9 previous
•14:00 US May ISM Non-Manufacturing Prices 59.2 previous
•14:00 US May ISM Non-Manufacturing New Orders 52.2 previous
•14:00 US May ISM Non-Manufacturing Employment 45.9 previous
•14:00 US Apr Dallas Fed PCE 2.90% previous
•14:00 US May ISM Non-Manufacturing PMI 51.0 forecast, 49.4 previous
•14:30 US Crude Oil Inventories -2.100M forecast, -4.156M previous
Looking Events And Other Releases(GMT)
•13:45 Canada BoC Rate Statement
•14:30 Canada BOC Press Conference
Currency Forecast
EUR/USD: The euro dipped against dollar on Wednesday as investors refrained from taking position ahead of upcoming European Central Bank policy meeting . The ECB meets on Thursday, and money markets price in an almost certain chance of a first interest rate cut. However, there is uncertainty about the future path of euro zone rates.Data on Wednesday showed euro zone business activity expanded at its quickest rate in a year in May as growth in the services industry outpaced a contraction in manufacturing. The euro was down 0.1% at 1.086 versus the greenback. Immediate resistance can be seen at 1.0919(23.6%fib), an upside break can trigger rise towards 1.0940(Higher BB).On the downside, immediate support is seen at 1.0877(38.2% fib), a break below could take the pair towards 1.0848(50% fib).
GBP/USD: Sterling edged up versus the dollar on Wednesday ahead of key U.S. economic data, while market participants mull over the impact of a potential victory for the Labour Party in next month's general elections. The U.S. employment data throughout the week will dominate the macro calendar, after Wednesday's U.S. services data. On May 22, Prime Minister Sunak announced that the next UK general election will occur on July 4.The UK data calendar is light this week, barring Thursday's release of the Bank of England's (BoE) Decision Maker Panel on inflation expectations. Sterling was up 0.1% at $1.2776. It hit $1.2817 the day before, its highest since March 14. Immediate resistance can be seen at 1.2817 (23.6%fib), an upside break can trigger rise towards 1.2856(38.2% fib).On the downside, immediate support is seen at 1.2734(38.2%fib), a break below could take the pair towards 1.2668(50% fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as investors looked out for U.S. services data on Wednesday, and more job figures later in the week. The risk that the U.S. economy might be softening more than expected was brought to the fore again after Tuesday's data showed job openings fell more than forecast in April to the lowest in more than three years.That helped to reinforce some investor speculation that the Federal Reserve could be on track to lower interest rates this year as a cooling economy tempers inflation pressures. The greenback has languished at an almost two-month low as signs of a softening U.S. economy on Monday boosted the case for earlier Federal Reserve interest rate cuts. Immediate resistance can be seen at 0.8994(23.6% fib), an upside break can trigger rise towards 0.9036 (June 3rd high).On the downside, immediate support is seen at 0.8920(38.2% fib), a break below could take the pair towards 0.8867(50% fib).
USD/JPY: The U.S. dollar strengthened against yen on Wednesday as a soft U.S. labour market data firmed bets of a rate cut from the Federal Reserve. Data showed U.S. job openings fell in April, signalling an easing labour market and firming bets of a Fed rate cut in September. The U.S. dollar index rose 0.19% to 104.36. It hit 103.99 on Tuesday, its lowest level since April 9. This week brings a slew of major data. Non-farm payroll figures for May are out on Friday, following Tuesday's Job Openings and Labor Turnover Survey.The yen slipped about 0.8% to 155.90 per dollar, retracing more than Tuesday's gains .Strong resistance can be seen at 156.77(23.6%fib), an upside break can trigger rise towards 157.69(Higher BB).On the downside, immediate support is seen at 154.90(38.2% fib), a break below could take the pair towards 153.30 (50%fib).
Equities Recap
European shares gained on Wednesday, mirroring global sentiment as a soft U.S. labour market data firmed bets of a rate cut from the Federal Reserve, ahead of the European Central Bank's key rate verdict later this week.
UK's benchmark FTSE 100 was last up by 0.40 percent, Germany's Dax was last up by 0.56 percent, France’s CAC was last up by 1.03 percent.
Commodities Recap
Gold prices edged higher on Wednesday as market participants waited for more economic data to gauge the Federal Reserve’s next step on monetary policy.
Spot gold was up 0.1% at $2,330.70 per ounce after a 1% fall in the previous session. U.S. gold futures rose 0.1% to $2,350.30.
Oil prices hovered near four-month lows on Wednesday on an expected supply boost later in the year when OPEC+ begins to unwind some output cuts, with markets also digesting U.S. jobs data and higher oil stocks.
Brent crude futures were up 26 cents, or 0.3%, at $77.78 a barrel by 0825 GMT. U.S. West Texas Intermediate crude futures rose 24 cents, or 0.3%, to $73.49.
