America roundup: Dollar plunges as hopes rise that inflation has peaked, Wall Street surges, gold gains, oil settles up 1% on tight supply , US crude at 13-week high on June 8, 2022

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Market overview

• Exports from Canada in April 64.31 billion, 61.76 billion forecast, 63.63 billion previous

• US imports 339.70, previous B351.50B

•US Trade Balance in April -87.10B, -89.50B forecast, -109.80B previous

•Canada’s trade balance in April 1.50 billion, forecast 2.90 billion, previous 2.49 billion

• April Canadian imports 62.81 billion, forecast 58.11 billion, previous 61.14 billion

• French BTF auction 12 months 0.239%, 0.092% previous

• French 3-month BTF auctions -0.555%, -0.561% previous

• Auction of French 6-month BTFs -0.295%, -0.432% previous

• Canada May Ivey PMI 66.7 66.3 previous

• Canada May Ivey PMI nsa 72.0, 68.0 previous

Forward-looking economic data

•23:50 Japan GDP Capital Expenditure (QoQ) (Q1) 0.3% forecast, 0.5% previous

•23:50 Japan GDP (Q/Q) (Q1) -0.3% forecast, -0.2% previous

•23:50 Japan GDP (Annual) (Q1) -1.0% forecast, -1.0% previous

•23:50 Japan Apr Current account nsa 0.511T forecast, 2.549T previous

•01:30 Australia May NAB Business Confidence 10 previous

Currency summaries

EUR/USD: The euro fell against a stronger dollar on Tuesday as Wall Street stocks erased initial declines amid growing hopes that inflation had peaked. Investors will get a glimpse of the latest inflation reading on Friday in the form of the May consumer price index. The dollar index fell 0.176% to 102.270, with the euro up 0.14% to $1.0709. on May 13, the dollar index returned to around the 102 level, although Friday’s strong payrolls report helped the greenback post its first weekly gain in three. Immediate resistance can be seen at 1.0711 (5DMA), a break up can trigger a rise towards 1.0741 (23.6% fib). On the downside, immediate support is seen at 1.0662 (38.2% fib), a break below could take the pair towards 1.0604. (50% fiber).

GBP/USD: The pound rebounded strongly after initially falling on Tuesday as fresh political headwinds for embattled British Prime Minister Boris Johnson unnerved investors. Johnson, who won a landslide election victory in 2019, came under mounting pressure after he and staff staged booze-fueled parties at his office and Downing Street residence when Britain was on lockdown for combat the COVID-19 pandemic. Johnson won the vote of confidence 211 to 148, but her 59% share of the vote was lower than the 63% achieved by her predecessor Theresa May in her December 2018 vote of confidence who was replaced seven months later. The pound last traded at $1.2592, up 0.49% on the day. Immediate resistance can be seen at 1.2635 (23.6% fib), a break up can trigger a move higher towards 1.2674 (27th May high). On the downside, immediate support is seen at 1.2557 (38.2% fib), a break below could take the pair towards 1.2475 (50% fib).

USD/CAD: The Canadian dollar strengthened to its highest level in nearly seven weeks against the greenback on Tuesday as oil prices rose and Canadian bond yields rose above their US counterparts. The loonie was trading up 0.4% at 1.2530 to the US dollar, after hitting its highest level since April 21 at 1.2525. U.S. crude oil futures settled up 0.8% at $119.41 a barrel, supported by supply issues and the prospect of higher demand as China eases measures lockdowns planned to control the coronavirus pandemic. Oil is one of Canada’s main exports. Immediate resistance can be seen at 1.2560 (5 DMA), a break up can trigger a rise towards 1.2590 (38.2% fib). On the downside, immediate support is seen at 1.2519 (23.6% fib), a break below could take the pair towards 1.2403 (BB lower).

USD/JPY: The dollar strengthened on Tuesday as the policy paths of the Fed and BoJ central banks diverge. On Tuesday, Bank of Japan Governor Haruhiko Kuroda reiterated that a weak yen benefits the economy if its moves aren’t too abrupt, a comment that followed the currency’s plunge to a new low. two decades. The Japanese yen weakened 0.55% against the greenback to 132.59 to the dollar. Investors will get a glimpse of the latest inflation reading on Friday in the form of the May consumer price index. Strong resistance can be seen at 132.92 (23.6%fib), a break up can trigger a rise towards 133.58 (BB upper). On the downside, immediate support is seen at 131.61 (5DMA), a break below could take the pair towards 130.67 (38.2%fib).

Summary of actions

European stocks fell on Tuesday as investors worried about economic growth being squeezed by central banks aggressively tightening monetary policy in a bid to rein in rising inflation, while retail stocks rose. fell after the stark warning from US retailer Target.

Britain’s benchmark FTSE 100 closed down 0.12%, Germany’s Dax ended up 0.66%, France‘s CAC ended the day down 0.75%.

U.S. stocks rallied late Tuesday to end higher for a second straight day as tech and energy stocks gained, while Target Corp’s overstock warning weighed on shares of detail for much of the session.

The Dow Jones closed down 0.45%, the S&P 500 closed up 0.01%, the Nasdaq stabilized 0.78%.

Summary of treasury bills

Yields on U.S. Treasuries fell on Tuesday after Target Corp. warned of excess inventory and said it would cut prices, bolstering bets that the worst rise in inflation could be in the past.

Yields hit a 3.5-week high overnight on fears the Federal Reserve will continue to hike rates aggressively as it battles persistently high inflation rising at its fastest pace in 40 year.

Summary of raw materials

Gold prices rose on Tuesday after rising inflation concerns boosted safe-haven bids for the precious metal and a drop in US Treasury yields added support.

Spot gold rose 0.6% to $1,851.63 an ounce as of 10:47 a.m. EDT (1447 GMT), after hitting a one-week low of $1,836.10 earlier. in the session. US gold futures rose 0.6% to $1,854.00.

Oil prices rose about 1% on Tuesday, with U.S. crude hitting a 13-week high on supply issues, including the lack of a nuclear deal with Iran, and the outlook of demand growth in China, which is easing lockdowns to control the pandemic.

Brent crude futures gained $1.06, or 0.9%, to settle at $120.57 a barrel, its highest level since May 31. Settlement top of August 2008.

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