Posted at 26 May 2022 / Categories Market Roundups
•Italian May Consumer Confidence 102.7 ,100.5 forecast, 100.0 previous
•Italian May Business Confidence 109.3 , 109.0 forecast,110.0 previous
•Italian Mar Industrial Sales (MoM) 2.40%, 2.80% previous
• Italian Mar Industrial Sales (YoY) 21.40%, 20.90% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Continuing Jobless Claims 1,310K forecast, 1,317K previous
•12:30 US Jobless Claims 4-Week Avg 199.50K previous
•12:30 US Initial Jobless Claims 215K forecast, 218K previous
•12:30 US Mar Core Retail Sales (MoM) 2.0% forecast, 2.1% previous
•12:30 US Mar Retail Sales (MoM) 1.4% forecast, 0.1% previous
•12:30 US Mar GDP Price Index (QoQ) (Q1) 8.0% forecast, 8.0% previous
•12:30 US Core PCE Prices (Q1)5.20% forecast,5.20% previous
•12:30 US GDP (QoQ) (Q1)-1.3% forecast,-1.4% previous
•14:00 US Apr Pending Home Sales Index 103.7 previous
•14:00 US Apr Pending Home Sales (MoM) -2.0% forecast,-1.2% previous
•14:30 US Natural Gas Storage89Bforecast,-89B previous
•15:00 US May KC Fed Manufacturing Index28 previous
•15:00 US May KC Fed Composite Index 25 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
EUR/USD: The euro was little changed on Thursday as European Central Bank (ECB) policymakers soothed fears of more aggressive rate tightening than expected, starting from a 50-basis-point interest rate increase in July. ECB chief Christine Lagarde gained key allies for her tightening plan on Wednesday, but Klaas Knot, one of the most conservative governing council members, argued right away that the central bank should not yet rule out a 50-basis-point interest rate increase in July.Lagarde has advocated a gradual approach to monetary tightening while asserting the ECB is free to react to the effects on the economy and the inflation outlook as rates rise. Immediate resistance can be seen at 1.0756(38.2%fib), an upside break can trigger rise towards 1.0784 (Higher BB).On the downside, immediate support is seen at 1.0649(23.6%fib), a break below could take the pair towards 1.0605 (9DMA).
GBP/USD: Sterling held near its highest levels in three weeks on Thursday, with traders awaiting more details on the British government’s response to a cost-of-living crisis.Sterling has been hit hard in recent weeks by growing fears that Britain’s economy is heading towards recession and analysts said any signs of government support could help lift sentiment toward the currency, which has rebounded this week.The pound was broadly steady at $1.2594, having briefly touched a three-week peak at $1.2612. It was also little changed versus the euro at 84.96 pence.Immediate resistance can be seen at 1.2603(38.2%fib),an upside break can trigger rise towards 1.2702(50%fib).On the downside, immediate support is seen at 1.2559(5DMA), a break below could take the pair towards 1.2493 (23.6%fib).
USD/CHF: The dollar was little against the Swiss franc on Thursday as minutes from the Federal Reserve's May meeting contained few surprises, with most participants favouring additional 50 basis point rate hikes at the June and July meetings . The dollar index , which measures the currency against six major peers, was flat at 102.06 as the minutes showed the Fed is likely to stay the course for now, but keep its options open for a range of policy choices after the July meeting. Immediate resistance can be seen at 0.9664 (50%fib), an upside break can trigger rise towards 0.9759 (61.8%fib).On the downside, immediate support is seen at 0.9565 (38.2% fib), a break below could take the pair towards 0.9533 (Lower BB ).
USD/JPY: The dollar edged lower against the Japanese yen on Thursday as persistent concerns over growth in China and worries about the Federal Reserve’s intent to tighten policy quickly increased demand for yen. All participants at the Fed’s May 3-4 meeting supported a half-percentage-point rate increase - the first of that size in more than 20 years.While some investors worry that overly aggressive interest rate hikes by the Fed could tip the economy into recession, Wednesday’s minutes seemed to suggest the Fed would pause its tightening streak to assess the impact on growth. The immediate attention is on Thursday’s Commerce Department release of its second take on first-quarter GDP, which analysts expect to show a slightly shallower contraction. Strong resistance can be seen at 127.38(5DMA), an upside break can trigger rise towards 128.47(23.6%fibOn the downside, immediate support is seen at 126.33 (50DMA), a break below could take the pair towards 125.00(Psychological level).
European markets were modestly higher on Thursday, bolstered by energy shares and the U.S. Federal Reserve sticking to script about monetary tightening, with sentiment fragile on lingering worries about slowing economic growth.
At (GMT 10:02 ),UK's benchmark FTSE 100 was last trading up at 0.15 percent, Germany's Dax was up by 0.59 percent, France’s CAC was last up by 0.71 percent.
Gold prices dropped on Thursday as the dollar edged higher, with some investors cashing in after minutes of a U.S. Federal Reserve policy meeting showed that the central bank was likely to stay the course on interest-rate hikes.
Spot gold dipped 0.5% to $1,844.15 per ounce, by 0546 GMT, as a firmer dollar hurt demand for greenback-priced bullion for buyers holding other currencies. U.S. gold futures eased 0.2% to $1,843.30.
Oil prices rose on Thursday, extending a cautious rally this week on signs of tight supply while the European Union (EU) wrangles with Hungary over plans to ban imports from Russia, the world's second-largest crude exporter, after it invaded Ukraine.
Brent crude futures for July settlement gained 47 cents, or 0.41%, to $114.50 a barrel at 0656 GMT. U.S. West Texas Intermediate (WTI) crude futures for July delivery climbed 53 cents, or 0.48%, to $110.86 a barrel.