Posted at 23 June 2020 / Categories Market Roundups
Market Roundup
• European PMI data romps expectations
• White House assures U.S.-China trade deal still intact
• Investors buoyed by China deal remaining live
• US Redbook (MoM) -6.1%,-2.4% previous
• US Redbook (YoY) -1.4%, -8.3% previous
• US June Manufacturing PMI 49.6, 48.0 forecast, 39.8 previous
• US June Markit Composite PMI 46.8,37.0 previous
• US June Services PMI 46.7, 46.5 forecast, 37.5 previous
• US June Richmond Services Index -28,-48 previous
• US May New Home Sales (MoM) 16.6%, 2.9% forecast, 0.6% previous
• US May New Home Sales 676K, 640K forecast, 623K previous
• US June Richmond Manufacturing Shipments -1, -26 previous
• US June Richmond Manufacturing Index 0 , -27 previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 1.0% previous
• 02:00 New Zealand RBNZ Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 02:00 New Zealand RBNZ Rate Statement
• 02:00 RBNZ Press Conference
Fxbeat
EUR/USD: The euro rose against dollar on Tuesday as euro was bolstered by French business activity rebounding more than expected in June, returning to growth after three months of an unprecedented downturn. It also took a boost from data showing the euro zone downturn eased again this month. Euro zone PMIs recovered to 47.5 from May’s 31.9 and April’s record low of 13.6. The future output index, which had been below the 50 mark that separates growth from contraction for three months, recovered to 55.7 from 46.8 too. Immediate resistance can be seen at 1.1358 (June 16th), an upside break can trigger rise towards 1.1424 (Higher BB).On the downside, immediate support is seen at 1.1292 (23.6% fib), a break below could take the pair towards 1.1216 (21 DMA).
GBP/USD: Sterling strengthened against dollar on Tuesday after data showed as better-than-expected PMI data supported the British currency. The IHS Markit/CIPS flash composite Purchasing Managers’ Index (PMI), which measures activity in the services sector and manufacturing, jumped to 47.6 in June from 30.0 in May. This was a record rise that easily exceeded expectations in a poll for an increase to 41, though its sub-50 level still represents a modest fall in output. Immediate resistance can be seen at 1.2533 (38.2%fib),an upside break can trigger rise towards 1.2769 (23.6% fib).On the downside, immediate support is seen at 1.2418 (50DMA), a break below could take the pair towards 1.2311 (50% fib).
USD/CAD: The Canadian dollar was the only G10 currency to lose ground against its U.S. counterpart on Tuesday as investors worried that Washington could reimpose tariffs on Canadian aluminum, with the loonie pulling back from a near two-week high. The loonie was trading 0.2% lower at 1.3555 to the greenback. The currency touched its strongest intraday level since June 11 at 1.3486 before turning lower. Immediate resistance can be seen at 1.3445 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3471 (23.6%fib ), a break below could take the pair towards 1.3339 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen Tuesday after lost ground against safe haven currencies after euro zone Purchasing Managers' Indexes thumped expectations. The potential for spikes in coronavirus infection rates across the United States to slow the country's economic recovery also weighed on the greenback. Strong resistance can be seen at 107.87 (38.2% fib), 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 closed at their highest in almost two weeks on Tuesday, powered by cyclical stocks, following signs that business activity in the continent was rebounding faster than expected from a coronavirus-driven slump.
UK's benchmark FTSE 100 closed up by 1.21 percent, Germany's Dax ended up by 2.13 percent, France’s CAC finished the day up by 1.39 percent.
U.S. stocks bounced back from recent losses on Monday, as the focus turned to assurances of central bank stimulus to counter the economic fallout from the coronavirus outbreak.
Dow Jones closed down by 0.50% percent, S&P 500 closed up by 0.44% percent, Nasdaq settled down by 0.74% percent.
Treasuries Recap
Longer-term U.S. Treasury yields ticked higher on Tuesday as positive economic reports raised hopes of a swift recovery despite the continued COVID-19 pandemic.
The benchmark 10-year yield was up less than a basis point in afternoon trading at 0.7102%.
Commodities Recap
Gold prices surged to their highest since October 2012 on Tuesday, driven by a weakness in the U.S. dollar and widespread monetary stimulus packages by central banks as a jump in coronavirus cases dents the economic outlook.
Spot gold climbed 0.7% to $1,767 per ounce by 12:22 p.m. EDT (1622 GMT), having hit $1,768.96, its highest since October 2012. U.S. gold futures were up 0.9% to $1,782.30 per ounce.
Oil prices were little changed on Tuesday, hovering near their highest levels since early March after U.S. President Donald Trump soothed jangled nerves over U.S.-China trade.
Brent futures were up 11 cents, or 0.3%, to $43.19 a barrel by 12:17 p.m. EDT (1617 GMT). U.S. West Texas Intermediate (WTI) crude rose 5 cents, or 0.1%, to $40.78. U.S. crude could close its highest since March 6 for a third straight session.