Posted at 19 June 2020 / Categories Market Roundups
Market Roundup
• German May PPI (MoM) -0.4%,-0.3% forecast, -0.7% previous
• UK May Public Sector Net Borrowing 54.50B, 47.30B forecast, 61.40B previous
• UK May Public Sector Net Cash Requirement 71.436B, 89.544B previous
• UK Core Retail Sales (YoY) -9.8%,-14.4% forecast, -18.4% previous
• UK May Retail Sales (MoM) 12.0%,5.7% forecast, -18.1% previous
• UK May Core Retail Sales (MoM) 10.2%,4.5% forecast, -15.2% previous
•German May PPI (YoY) -2.2%,-2.1% forecast, -1.9% previous
• UK May Retail Sales (YoY) -13.1%,-17.1% forecast, -22.6% previous
• UK April Current Account 14.4B, 27.4B previous
• Russia May Unemployment Rate 0.0%,6.2% forecast, 5.8% previous
Looking Ahead Economic Data (GMT)
• 12:30 Canada April Retail Sales (MoM) -15.1%,-10.0% previous
• 12:30 US Current Account (Q1)Current Account (Q1) -103.0B, -109.8B previous
• 12:30 Canada April Core Retail Sales (MoM) -13.5% forecast,-0.4% previous
• 14:23 Russia May Retail Sales (YoY) -15.3%,-23.4% previous
•14:23 Russian April Real Wage Growth (YoY) -8.0% forecast,5.9% previous
• 17:00 U.S. Baker Hughes Total Rig Count 279 previous
• 17:00 U.S. U.S. Baker Hughes Oil Rig Count 199 previous
Looking Ahead - Events, Other Releases (GMT)
• 16:00 US FOMC Member Rosengren Speaks
• 17:00 US FOMC Member Quarles Speaks
• 17:00 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro was little changed on Friday as an EU summit focused on a 750 billion euro recovery fund got underway, while geopolitical strains and fears of a second wave of COVID-19 cases set the dollar on track for its best weekly gain in a month. Traders were switching their attention to a European Union summit which will seek to bridge regional divisions over a coronavirus recovery fund which would bring the bloc closer to a fiscal union. The euro was flat at $1.1225, having lost about 1% against the dollar since Tuesday on doubts over whether the plan can be realised. Immediate resistance can be seen at 1.1291 (23.6% fib), an upside break can trigger rise towards 1.1360 (June 16th high).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1164 (38.2% fib).
GBP/USD: Sterling fell below $1.24 on data-heavy Friday as traders shifted their attention from a bounce back in retail sales to the coronavirus-fuelled surge in UK public debt. The pound had risen briefly on data showing that retail sales rebounded in May more strongly than hoped after April’s precipitous slump. That optmism was offset by official data showing that government borrowing hit a record high and public debt had climbed above economic output. The pound was 0.3% down against the dollar at $1.2370 by 1215 GMT, its lowest since June 1. Immediate resistance can be seen at 1.2518 (38.2% fib),an upside break can trigger rise towards 1.2588 (Higher BB).On the downside, immediate support is seen at 1.2311 (50% fib), a break below could take the pair towards 1.2176 (Lower BB).
USD/CHF: The dollar was little changed against the Swiss franc on Friday as lingering concerns about an fresh spike in coronavirus cases offset growing hopes for a quick economic recovery. On the whole, markets have been sideswiped this week on fresh contagion concerns, prompting some investors to temper their optimism about how quickly the global economy can recover for the pandemic. Immediate resistance can be seen at 0.9494 (Daily high), an upside break can trigger rise towards 0.9535 (50% fib).On the downside, immediate support is seen at 0.9444 (38.2% fib), a break below could take the pair towards 0.9416 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen Friday as coronavirus cases increased in some countries, as markets reassessed expectations for an economic recovery before a key European Union meeting.Mainland China reported 32 new coronavirus cases by the end of June 18, 25 of them in the capital city, Beijing. Infections also rose in the United States this week. Strong resistance can be seen at 107.05 (5 DMA), an upside break can trigger rise towards 108.02 (38.2% fib).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares gained ground on Friday, ahead of the European Council’s meeting to negotiate the EU recovery fund, while German payments firm Wirecard tumbled for a second straight day after disclosing a $2.1 billion hole in cash balances.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 1 .36 percent, Germany's Dax was up by 0.98 percent, France’s CAC finished was up by 1.46 percent.
Commodities Recap
Gold prices gained on Friday as concerns that cases of coronavirus infections were rising propped up demand for the safe-haven metal.
Spot gold rose 0.5% to $1,731.00 per ounce by 1003 GMT. U.S. gold futures also 0.5% higher at $1,739.50.
Oil rose to above $42 a barrel on Friday, adding to gains in the previous session, after OPEC producers and allies promised to meet supply cuts and signs of demand, hit by the coronavirus crisis, recovering.
Brent crude was up 75 cents, or 1.8%, at $42.26 by 1117 GMT after hitting $42.89, its highest since June 8. U.S. West Texas Intermediate (WTI) crude climbed 96 cents, or 2.5%, to $39.80.