Markets experienced a mixed mood across global assets as investors eye US key economic data. The dollar was down-beat against a majority of pairs as Fed tightening sentiment faded. Tokyo and Eurozone CPI rose to new highs provoking fresh inflationary concerns. The yen was the biggest FX gainer as the market experienced a risk-off mood.
CADJPY extended yesterday’s losses by -0.95% with more bids on the Yen in a risk-off market. The Yen gets a lift on a brighter economy overall. Japan’s Tokyo CPI rose to 2.5% from the previous 2.3% while the core figures rose to 2.3% against forecasts of 2.2%. The Japanese jobs/application ratio rose to 1.27 from 1.25 expected. Industrial production for June showed a stronger economic outlook with a reading of 8.9% beating expectations of 3.7%. The pair left an intraday resistance at 105.00 and key zones to watch out for are 103.00 and 102.00 levels.
USDCHF plunged by -0.15% on a weaker Dollar on Friday. However, CHF’s positive sentiment remains fragile following unchanged Retail Sales data which came unchanged at 1.2%. Switzerland’s KOF leading indicator fell to 90.1 vs expectations of 95.2 showing less confidence in the country’s economy in the future. Further gains are capped by 0.9550 however if the latter fails to hold 0.9600 would be an area to watch out for. On the downside, a break below 0.9500 may give room for 0.9400 which coincides with the 20day SMA.
EURAUD is up +0.30% following more pleasing Eurozone data. Eurozone’s CPI [YoY] for July rose to 8.9% from a forecast of 8.6%. The preliminary GDP came in at 4.0% vs 3.4% expected on a yearly basis indicating strong economic growth. The pair’s intraday support resides at 1.4560 and upside gains are capped by 1.4700 in the near term. A rally above that 1.4700 level may give bulls the 1.4800 targets.
European equities were mixed following Eurozone’s GDP data release. The CAC 40 is the biggest gainer with + 0.31% getting a boost from pleasing GDP readings. France’s preliminary GDP QoQ [Q2] rose to 0.5% vs the 0.2% expected. Bullish targets may be seen at 6500 and 6600 if bulls remain strong above the 6400 level. However, 6255 may be an interesting level to watch out for in the case that bears take over.
DAX plunged by -0.19% as a result of a weakening economy. The country’s GDP fell to 0.0% from 0.1% in the second quarter. The number of unemployed people in the country rose to 48K vs the expected 15K. The index pocked the 13450 resistance yesterday and a break above may fuel bulls towards 13 679 and 14 000. FTSE 100 is down -0.38% below 7400 and a bullish run could see the index aim targets at 7500.
US stock futures wobbled as earning season continues. DJIA futures are up +0.11% above 32500 and room for further gains may be challenged by 33000 and 33500. The S&P 500 futures are less volatile at +0.02% above 4075 with a bullish cap at 4200. Nasdaq futures plunged by -0.23% trading slightly below 13000, an 11-week high. A break above may give room for 13581 and 14000.
Brent plummeted by -3.22% as bulls lost steam at the 108.00 level. The 102.00 and 100.00 levels, an 8-day low are the next critical support levels to watch. USWTI trimmed gains despite maintaining +0.85% on a weaker dollar. Upside gains are capped by the 100.00 level while 96.00 remains critical support.