Posted at 22 June 2020 / Categories Market Roundups
Market Roundup
• WHO reports single-day record of COVID cases
• Stocks, oil edge higher on recovery hopes
• US Chicago May Fed National Activity 2.61, -16.74 previous
• EU June Consumer Confidence -14.7, -15.0 forecast, -18.8 previous
• US May Existing Home Sales (MoM) -9.7%,-3.0% forecast, -17.8% previous
• US May Existing Home Sales 3.91M, 4.12M forecast, 4.33M previous
Looking Ahead - Events, Other Releases (GMT)
•23:00 Australia Manufacturing PMI 44.0 previous
•23:00 Australia Services PMI 26.9 previous
• 00:30 Japan June Manufacturing PMI 38.4 previous
• 00:30 Japan Services PMI 26.5 previous
• 05:00 Japan BoJ Core CPI (YoY) -0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained against on Monday as investors shrugged off worries that rising coronavirus infections in parts of Europe and the United States over the weekend could scupper a quick economic rebound. Torn between record stimulus and growing fears of a second wave of infections, stocks have been moving sideways in recent weeks after rising more than 40% from March lows on hopes the worst of the pandemic was over. Immediate resistance can be seen at 1.1289 (23.6% fib), an upside break can trigger rise towards 1.1351 (June 16th high).On the downside, immediate support is seen at 1.1228 (5 DMA), a break below could take the pair towards 1.1166 (38.2% fib).
GBP/USD: Sterling rose against dollar on Monday, recovering from a three-week low during Asian trading, helped by a weaker dollar, hopes of a Brexit trade deal and expectations of better economic data. Britain has until the end of the year to sign a new trade agreement with the European Union, when a transition period following its exit from the bloc comes to an end. Although much remains to be discussed, both parties have signalled progress. The pound was last up 0.07% at $1.2468, having fallen earlier to $1.2337, its lowest since June 1. Immediate resistance can be seen at 1.2523 (38.2% fib),an upside break can trigger rise towards 1.2523 (38.2% fib).On the downside, immediate support is seen at 1.2422 (30 DMA), a break below could take the pair towards 1.2307 (50% fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as investors focused on the rally on Wall Street rather than the prospect of a long period of monetary policy stimulus from the Bank of Canada. Wall Street's major indexes climbed as investors appeared to look past the potential economic impact of rising coronavirus cases in the United States and other major economies. The Canadian dollar was trading 0.5% higher at 1.3532 to the greenback. Immediate resistance can be seen at 1.3555(5 DMA), an upside break can trigger rise towards 1.3530 (38.2%).On the downside, immediate support is seen at 1.3470 (23.6%fib), a break below could take the pair towards 1.3331 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen Monday as investors edged into perceived safe-haven assets after the World Health Organization reported a record global increase in COVID-19 cases. New U.S. cases on Saturday hit the highest since early May, while the WHO reported on Sunday total cases rose by 183,020 in a 24-hour period. Fears of a second wave have also spurred safe-haven demand. The dollar index fell 0.664%. The Japanese yen strengthened 0.04% versus the greenback at 106.88 per dollar. The Japanese yen strengthened 0.04% versus the greenback at 106.94 per dollar. Strong resistance can be seen at 107.05 (9 DMA), an upside break can trigger rise towards 107.23 (21DMA ).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.12(Lower BB).
Equities Recap
European shares closed at a near one-week low on Monday as signs of a resurgence in coronavirus cases in Germany and elsewhere unnerved investors who were hoping for a swift economic recovery from the crisis.
The UK's benchmark FTSE 100 closed up by 0.76 percent. Germany's Dax ended down by 0.55 percent, and France’s CAC finished the down by 0.62 percent.
Wall Street’s three major indexes closed higher on Monday with the biggest gains in technology stocks as investors focused on the potential for more government stimulus measures even as they worried about an increase in coronavirus cases in the United States and other countries.
Dow Jones closed up by 0.59 percent, S&P 500 ended up 0.65 percent, Nasdaq finished the day up by 1.11 percent.
Treasuries Recap
U.S. Treasury yields were stable on Monday, as investors awaited details on what a continuing increase in COVID-19 cases could mean for the U.S. economy.
The benchmark 10-year yield was up 1.1 basis points in afternoon trading at 0.7102%.
Commodities Recap
Gold prices climbed 1% on Monday to hit the highest level in more than a month, as investors took refuge in the safe-haven metal after an uptick in coronavirus cases dampened hopes for a quick economic recovery.
Spot gold was up 0.7% to $1,755.58 per ounce at 02:41 p.m. ET (1841 GMT). The session high was 1,762.84, the highest since May 18.
Oil was up 2% on Monday on tighter crude supplies from major producers and as coronavirus lockdowns kept easing despite a record rise in cases globally.
Brent crude settled at $43.08 a barrel, up 89 cents, or 2.1%. The West Texas Intermediate (WTI) crude contract for August, the day’s more-active contract, settled at $40.73 a barrel, rising 90 cents, or 2.3%.