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Markets Update: USD steady and Yen down amid Ueda comments
Today's important market events:
[GBP] CPI (MoM - Jun) - 08:00 CEST
actual at o.1%
[GBP] CPI (YoY - Jun) - 08:00 CEST
actual at 7.9%
[USD] Building Permits (Jun) - 14:30 CEST
[USD] Crude Oil Inventories - 16:30 CEST
Global Markets Roundup: 19 Jul 2023
US Stocks Up
US stocks were higher on Wednesday, with the Russell 2000 outperforming amid strong gains in the regional banking ETF. The gains were supported by positive sentiment from Wall Street, where stocks closed up by 0.3% on Tuesday.
APAC Stocks Mixed
APAC stocks were mixed on Wednesday, with the Hang Seng and Shanghai Composite down, while the Nikkei 225 and KOSPI were up. The mixed performance was due to a combination of factors, including the ongoing China economic woes and the constructive lead from Wall Street.
European Equity Futures Higher
European equity futures are indicative of a slightly higher open with the Euro Stoxx 50 +0.2% after the cash market closed up by 0.3% yesterday. The gains are being supported by positive sentiment from the US and APAC markets.
DXY Reclaims 100 Level The dollar index (DXY) has reclaimed the 100 level, as the US dollar has strengthened against most major currencies. The euro (EUR/USD) is maintaining 1.12 status, while the Japanese yen (JPY) is lagging the majors with USD/JPY back on a 139 handle.
The ASX 200 and Nikkei 225 were up, while the Hang Seng and Shanghai Composite were down. The mixed performance was due to a combination of factors, including the recent upside in oil prices, dovish-leaning ECB rhetoric, and ongoing economic woes in China.
US Equity Futures Steady
US equity futures were steady as participants await more earnings results including GS, TSLA and NFLX.
FX
The dollar index (DXY) was marginally firmer and reclaimed the 100.00 level amid some softening in its major counterparts overnight. The euro (EUR/USD) was lacklustre but remained above 1.1200 despite the recent dovish-leaning ECB rhetoric. GBP/USD extended on the prior day’s losses after giving up the 1.3100 status, while the focus turns to UK CPI. USD/JPY edged higher and reclaimed the 139.00 handle owing to the rebound in the buck. The antipodeans were subdued amid a softer yuan and lingering China economic woes which saw NZD/USD completely fade the initial upside from the firmer-than-expected New Zealand inflation data.
Fixed Income
10yr UST futures were steady and showed some composure overnight following the prior day’s fluctuations and curve flattening which had been spurred by the mixed Retail Sales data and dovish ECB rhetoric. Bund futures slightly eased from yesterday’s peak but with the pullback limited by support around 134.00. 10yr JGB futures held on to their recent gains with relatively stable demand at the enhanced-liquidity auction for 2yr-20yr maturities.
Commodities
Crude futures marginally pulled back from yesterday's highs amid the mixed risk appetite in Asia and after the private sector inventory data showed a narrower-than-expected draw in headline crude inventories. Spot Gold traded rangebound with the recent upside capped by the rebound in the greenback. Copper futures were lacklustre amid the ongoing economic concerns surrounding its largest buyer China. Key mining zones in Peru will support new protests starting this week with groups from the key copper mining corridor set to arrive in Lima.
Looking Ahead Highlights for the day include:
UK CPI
EZ HICP (Final)
US Building Permits/Housing Starts
Speech from BoE's Ramsden
Supply from Germany, UK & US
Earnings from Netflix, Tesla, Goldman Sachs & IBM
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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