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Dow, S&P 500 gain on retail earnings boost

 

“The only real mistake is the one from which we learn nothing.” — Henry Ford 

 

 

HEADLINES

 

 

  • Dollar gains, euro recovers earlier losses
  • Gold eases as dollar holds ground; investors await Fed cues
  • Oil falls to 6-month low on economic data, awaits news of Iran nuclear deal
  • Dow, S&P 500 gain on retail earnings boost
  • Global stocks steady, U.S. Treasury yields rise as recession worries persist
  • GBP/USD: At clear risk of running back to the July low at 1.1763 – Scotiabank
  • USDJPY Near Term: Upside favored

 

 

Dollar gains, euro recovers earlier losses

 

The dollar gained on Tuesday as it benefited from expectations that the U.S. economy will be stronger than peers and the Federal Reserve will continue to hike interest rates.

The dollar slipped against a volatile euro, however, as the single currency climbed back into positive territory, after dropping earlier on data showing that German investor sentiment fell slightly in August on concerns the rising cost of living will hit private consumption.

The U.S. dollar index gained 0.09% to 106.55. The euro rose 0.08% against the dollar to $1.0167, after earlier falling to $1.0121, the lowest since Aug. 3.

 

 

COMMODITIES

 

 

Gold eases as dollar holds ground; investors await Fed cues

 

Gold edged lower on Tuesday as the dollar held close to a near three-week high, while investors awaited direction on interest rate hikes from minutes of the U.S. Federal Reserve’s last meeting.

Spot gold fell 0.2% to $1,774.79 per ounce by 1730 GMT, after a more than 1% decline on Monday.

U.S. gold futures settled down 0.5% at $1,789.7.

The dollar held near a three-week high hit earlier in the session.

 

 

ENERGY

 

 

Oil falls to 6-month low on economic data, awaits news of Iran nuclear deal

 

Oil prices fell over 2% on Tuesday to their lowest since before Russia's invasion of Ukraine, as economic data spurred concerns about a potential global recession, while the market awaited clarity on talks to revive a deal that could allow more Iranian oil exports.

Brent crude futures fell $2.27, or 2.4%, to $92.83 a barrel. The contract hit a session low of $92.51 per barrel, the lowest since Feb. 18.

West Texas Intermediate crude (WTI) shed $2.31, or 2.6%, to $87.10 a barrel. The benchmark fell to a session low of $86.69 per barrel, lowest since Feb. 1.

The contracts fell about 3% in their previous sessions.

 

 

STOCKS

 

 

Dow, S&P 500 gain on retail earnings boost

 

Strong earnings from Walmart and Home Depot helped drive gains in the Dow Jones and the S&P 500 indexes on Tuesday.

Walmart Inc (WMT.N) shares rose 5.9% after the world's largest retailer also forecast a smaller drop in full-year profit than previously projected.

Home Depot Inc (HD.N) added 5.4% as it surpassed estimates for quarterly sales on steady demand from builders as well as price hikes.

The two heavyweight stocks contributed to the S&P 500 retail sector's (.SPXRT) 2.1% gain.

 

 

Global stocks steady, U.S. Treasury yields rise as recession worries persist

 

Global equity markets were flat while U.S. Treasury yields rose on Tuesday as recession worries persisted amid concern the Federal Reserve will continue its steep interest rate hikes despite nascent signs of a slowdown in inflation.

The yield curve between two- and 10-year Treasury notes , viewed as an indicator of impending recession, remained inverted at minus 38.60 basis points on Tuesday.

MSCI's gauge of stocks in 50 countries across the globe (.MIWD00000PUS) were up just 0.04%. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) closed 0.07% lower, while Japan's Nikkei (.N225) lost 0.01%.

 

 

ANALYSIS

 

 

GBP/USD: At clear risk of running back to the July low at 1.1763 – Scotiabank

 

“Rising rates and falling private consumption amid surging prices are boosting recession risks in the UK and will maintain broader pressure on the GBP in the weeks ahead.”

“The short-term trend remains bearish and trend momentum signals are aligned bearishly for the pound currently, putting the market at clear risk of running back to (and a bit below) the July low at 1.1763.”

 

 

CHART

 

 

USDJPY Near Term: Upside favored

 

Technical View: Long position above 133.55. Target 134.6. Conversely, break below 133.55, to open 133.2.

Comments: The pair remains supported. Further advance favored.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

 

 

Source: FX Street Economic Calendar

 


Footnotes
https://www.reuters.com/markets/europe/dollar-gains-euro-recovers-earlier-losses-2022-08-16/
https://www.reuters.com/article/global-precious/precious-gold-eases-as-dollar-holds-ground-investors-await-fed-cues-idUSL4N2ZS2TL
https://www.reuters.com/business/energy/oil-prices-fall-recessionary-worries-weigh-demand-outlook-2022-08-16/
https://www.reuters.com/markets/europe/futures-tick-lower-retail-earnings-kick-off-2022-08-16/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-08-16/
https://www.fxstreet.com/news/gbp-usd-at-clear-risk-of-running-back-to-the-july-low-at-11763-scotiabank-202208161405