America roundup: Dollar gains ahead of Fed’s Powell speech, Wall Street ends higher, gold stabilizes, oil ends higher on US response to comments Iran nuclear deal – August 25, 2022

Market overview

• Canadian Corporate Profits (TQ) 6.5%, previous 1.9%

• Wholesale sales in Canada (monthly) -0.6%, previous 0.1%

• US July Non-defense durable goods (monthly) 1.2%, previous 0.5%

• July US Durable Goods Orders (monthly) 0.0%, forecast 0.6%, previous 2.0%

• US Durable Goods Orders in July (monthly) 0.3%, 0.2% forecast, 0.4% previous

• US Jul Goods Orders Non Defense Ex Air (MoM) 0.4%, 0.3% forecast, 0.7% previous

• US July Pending Home Sales (monthly) -1.0%, -4.0% forecast, -8.6% previous

• US Cushings Crude Oil Inventories -3.282 0.192 million previous

• Crude Oil Inventories in the United States -3.282 million forecast, -0.933 million forecast, -7.056 million previous

Future Outlook – Economic Data (GMT)

• No data forthcoming

Future Outlook – Events, Other Releases (GMT)

• 01:30 Nakamura, member of the Board of Directors of the BoJ of Japan, speaks

Currency summaries

EUR/USD: The euro was at its lowest level in two decades on Wednesday as investor sentiment deteriorated under the weight of high energy prices, a batch of lackluster global economic data and more fears of economic growth. ‘inflation. Renewed concerns that central banks will continue to raise interest rates aggressively to rein in searing inflation were also on investors’ minds ahead of the much-watched Jackson Hole central bank symposium that begins Thursday. The euro fell to its lowest level in two decades before rising slightly 0.05% to $0.9972. The dollar index rose 0.037%. The dollar index rose 0.037%. Immediate resistance can be seen at 0.9980 (38.2% fib), a break up can trigger a rise towards 1.0029 (50% fib). On the downside, immediate support is seen at 0.9990 (daily low), a break below could take the pair towards 0.9879 (23.6% fiber).

GBP/USD: The pound was stable against the dollar on Wednesday, holding above a 2.5-year low hit a day earlier after data added to signs that a recession could be on its way. profiling in Britain. The pound hit its lowest on Tuesday since March 2020 after Purchasing Managers’ Index (PMI) data showed UK private sector growth slowing in August as factory output fell and the construction sector services in the broad sense registering only a modest expansion. The figures added to signs that the UK economy will contract. The pound has been hit by concerns over soaring inflation and the decline of the UK economy, with last week suffering its biggest weekly decline against the greenback since September 2020. Immediate resistance can be seen at 1.1820 (38.2% fib), an upside break may trigger a rise towards 1.1856 (5DMA). On the downside, immediate support is seen at 1.1749 (daily low), a break below could take the pair towards 1.1675 (23.6% fib).

USD/CAD: The Canadian dollar weakened against its US counterpart on Wednesday as the greenback largely rallied and preliminary national data showed a drop in wholesale trade in July. Canadian wholesale trade likely fell 0.6% in July from June, led by lower sales of motor vehicles and motor vehicle parts, Statistics Canada said. The data adds to recent evidence showing slowing economic growth in the third quarter. The price of oil, one of Canada’s top exports, rose 0.6% to $94.33 a barrel. The Canadian dollar was trading down 0.4% at 1.30 against the greenback, after trading in a range of 1.2954 to 1.3015. Immediate resistance can be seen at 1.2983 (5DMA), a break up can trigger a rise towards 1.3050 (23.6% fib). on the downside, immediate support is seen at 1.2943 (38.2% fib), a break below could take the pair towards 1.2896 (14DMA).

USD/JPY: The dollar strengthened against the yen on Wednesday ahead of a speech in two days from Federal Reserve Chairman Jerome Powell, who could affirm the US central bank’s aggressive policy to control inflation. The U.S. dollar neared recent highs against a basket of major currencies after coming under pressure on Tuesday from disappointing U.S. business activity data that could boost prospects of a Federal Reserve comeback. on its warmongering position. Fed funds futures traders last estimated a 60.5% chance of the Fed raising rates by 75 basis points next month and a 39.5% chance of a 50 basis point hike basic. A strong resistance can be seen at 137.76 (23.6% fib), a break up can trigger a rise towards 138.00 (psychological level). On the downside, immediate support is seen at 136.59 (5DMA), a break below could take the pair towards 135.80 (5DMA).

Summary of actions

European stocks made gains at Wednesday’s close, supported by a rise in defensive stocks, although worries about a looming energy crisis and bleak growth outlook limited the gains.

Britain’s benchmark FTSE 100 closed down 0.22%, Germany’s Dax ended up 0.20% and France’s CAC ended up 0.39%.

Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit, as investors awaited the US Federal Reserve’s Jackson Hole conference this week.

The Dow Jones closed up 0.18%, the S&P 500 ended up 0.29%, the Nasdaq ended the day up 0.41%.

Summary of treasury bills

Yields on US Treasuries hit new multi-week highs on Wednesday as investors continued to add to their positions ahead of what could be a pivotal central bank rally in Wyoming that could see the Federal Reserve reinforce its message. tightening to eradicate inflation.

The yield on 10-year Treasury bills rose 5 basis points to 3.104%. The yield on 30-year Treasury bills rose 4.4 basis points to 3.300%.

Summary of raw materials

Gold stabilized on Wednesday as investors awaited the event from central bankers in Jackson Hole for clues on rate hikes.

Spot gold was up 0.1% at $1,749.35 an ounce at 2:29 p.m. ET (6:29 p.m. GMT). It increased by 1% in the previous session. US gold futures settled at $1,761.5.

Oil prices ended higher on Wednesday after a volatile trading session on fears the United States could consider further concessions to Iran in its response to a draft deal that would restore Tehran’s nuclear deal – and potentially the OPEC member’s crude exports.

Brent crude settled $1.00 at $101.22 while US crude settled $1.15 at $94.89 a barrel. Both benchmarks fell more than $1 earlier in the session.

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