Posted at 24 June 2020 / Categories Market Roundups
Market Roundup
• Finnish May PPI (YoY) -7.1%,-7.0% previous
• Finnish May Import Price Index (YoY) -9.4%, -10.8% previous
• Finnish May Unemployment Rate 6.8%,6.8% previous
• Finnish May Export Price Index (YoY) -8.0% , -7.8% previous
• French June Business Survey 77, 80 forecast, 70 previous
• Sweden June Consumer Confidence 84.0, 77.3 previous
• German June Business Expectations 91.4, 87.0 forecast, 80.1 previous
• German June Ifo Business Climate Index 86.2, 85.0 forecast, 79.5 previous
• German June Current Assessment 81.3, 84.0 forecast, 78.9 previous
• US MBA Purchase Index 312.7, 322.5 previous
• US Mortgage Refinance Index 3,434.6, 3,891.5 previous
• US Mortgage Market Index 773.1, 846.9 previous
Looking Ahead – Economic data (GMT)
• 13:00 Belgium June NBB Business Climate -28.0, -34.4 previous
• 13:00 US April House Price Index 287.9 previous
• 13:00 US April House Price Index (MoM) 0.1% previous
• 13:00 US April House Price Index (YoY) 5.9% previous
• 14:30 US Cushing Crude Oil Inventories -2.608M previous
• 14:30 US Crude Oil Inventories 0.299M forecast, 1.215M previous
Looking Ahead - Events, Other Releases (GMT)
• 16:30 US Chicago Fed President Evans Speaks
• 19:00 US FOMC Member Bullard Speaks
Fxbeat
EUR/USD: The euro dipped from 3 month high against dollar on Wednesday as investors turned cautious following a surge in the number of coronavirus cases globally. Many U.S. states reported record daily increases in COVID-19 infections amid easing of lockdowns, while a media report that European Union countries are prepared to bar entry to Americans raised worries of further restrictions. Immediate resistance can be seen at 1.1261 (23.6% fib), an upside break can trigger rise towards 1.1289 (23.6% fib).On the downside, immediate support is seen at 1.1164 (38.2% fib), a break below could take the pair towards 1.1100(Psychological level).
GBP/USD: Sterling declined against dollar on Wednesday as sterling was weighed down by uncertainty over Brexit negotiations even after global risk appetite got a boost from positive economic data as countries ease their lockdowns. For the past two days, the pound had risen against a weaker dollar, hitting a six-day high of $1.2541 at 0007 GMT on Wednesday, before reversing course as the greenback recovered. The pound fell back below the key $1.25 level versus the dollar to $1.2505 at 12:00 GMT, down 0.2% on the day. Immediate resistance can be seen at 1.2534 (38.2% fib),an upside break can trigger rise towards 1.2677 (200 DMA)On the downside, immediate support is seen at 1.2444(5 DMA), a break below could take the pair towards 1.2311 (50% fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as investors remained stubbornly upbeat on the outlook for a re-opening of the global economy even as cases of the coronavirus looked to be accelerating to new peaks. The dogged optimism about the global economy was supported by upbeat surveys of manufacturing from Europe, with France a stand-out as lockdown loosening there led to a modest return to growth. Immediate resistance can be seen at 0.9485 (5DMA), an upside break can trigger rise towards 0.9535 (50% fib).On the downside, immediate support is seen at 0.9431(Daily low), a break below could take the pair towards 0.9399 (Lower BB).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as markets hoped of a rapid global economic recovery from the coronavirus pandemic. Dollar gained on the improving economic picture, with UK, euro zone and U.S. data earlier in the week supporting riskier currencies at the expense of the safe-haven dollar. Strong resistance can be seen at 106.73(9 DMA), an upside break can trigger rise towards 107.27 (14 DMA ).On the downside, immediate support is seen at 105.83 (Lower BB ), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European stocks fell from a two-week high on Wednesday as investors turned cautious following a surge in the number of coronavirus cases globally.
At (GMT 12:16 ),UK's benchmark FTSE 100 was last trading down at 2.00 percent, Germany's Dax was down by 1.80 percent, France’s CAC finished was down by 1.61 percent.
Commodities Recap
Gold surged to its highest in nearly eight years on Wednesday as rising coronavirus cases globally dented hopes of a rapid economic recovery and pushed investors towards safe haven assets.
Spot gold prices climbed 0.6% to $1,777.53 per ounce by 0957 GMT, having earlier hit their highest since October 2012 at $1,779.06.
Oil prices fell on Wednesday, reversing the previous session’s surge, as record high inventories and worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.
Brent crude were down 43 cents, or 1%, to $42.20 a barrel by 1020 GMT a day after hitting its highest level since a price plunge began in March.U.S. West Texas Intermediate (WTI) crude fell 56 cents, or 1.4%, to $39.81 a barrel.
Treasuries Recap
Euro zone bond yields were broadly steady on Wednesday, as investors focused on a new century bond from Austria, while a record bounce-back in German business sentiment did little to move markets.
Germany’s 10-year bond yield was last unchanged at -0.40% after briefly rising to its highest in nearly two weeks at around -0.39% at the start of the session.Italian 10-year yields were up 2 basis points to 1.36%