Posted at 26 June 2020 / Categories Market Roundups
Market Roundup
Economic Data Ahead
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FX Beat
DXY: The dollar index rose, supported by the broader rise in corporate demand towards the end of the quarter. The greenback against a basket of currencies traded 0.05 percent up at 97.43, having touched a low of 96.39 on Tuesday, its lowest since June 11.
EUR/USD: The euro declined, extending losses for the third straight session after European Central Bank policymaker Klaas Knot stated that the recent series of positive economic indicators in the euro zone confirmed that a recovery is on its way but the bloc may still need years to reach pre-crisis levels of activity. The European currency traded 0.05 percent down at 1.1213, having touched a high of 1.1348 on Tuesday, its highest since June 16. Investors’ attention will remain on a series of data from Eurozone economies, EZ M3 money supply, ahead of U.S. personal consumption expenditures, personal income, personal spending and Michigan consumer sentiment index. Immediate resistance is located at 1.1249 (10-DMA), a break above targets 1.1269. On the downside, support is seen at 1.1185, a break below could drag it below 1.1168.
USD/JPY: The dollar eased, halting a 2-day winning streak as caution over rapid rises in U.S. coronavirus cases cast doubt over the reopening of the economy. The major was also weakened by data showing initial claims for state unemployment benefits stood at a seasonally adjusted 1.48 million for the week ended June 20. The major was trading 0.1 percent down at 107.08, having hit a low of 106.07 on Tuesday, its lowest since May 7. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. personal consumption expenditures, personal income, personal spending and Michigan consumer sentiment index. Immediate resistance is located at 107.60 (21-DMA), a break above targets 108.10. On the downside, support is seen at 106.86, a break below could take it near at 106.51.
GBP/USD: Sterling consolidated within narrow ranges amid worries about a second wave of COVID-19 infections and negotiations over a Brexit deal. The major traded flat at 1.2416, having hit a low of 1.2335 on Monday, it’s lowest since June 1. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2485 (10-DMA), a break above could take it near 1.2532 (21-DMA). On the downside, support is seen at 1.2363, a break below targets 1.2335. Against the euro, the pound was trading flat at 90.29 pence, having hit a low of 90.78 on Tuesday, it’s lowest since March 27.
AUD/USD: The Australian dollar nudged down, as cases rose across the United States, while over 9.51 million people have been infected globally, according to a Reuters tally. The Aussie trades 0.05 percent down at 0.6880, having hit a high of 0.6974 on Tuesday, it’s highest since June 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6929, a break above could take it near 0.6960. On the downside, support is seen at 0.6835 a break below targets 0.6807.
Equities Recap
Asian shares rose but were poised to end the week with only slight gains as surging coronavirus infections dented hopes for a swift global recovery.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5 percent.
Tokyo's Nikkei rose 1.1 percent to 22,512.08 points, Australia's S&P/ASX 200 index surged 1.5 percent to 5,904.10 points.
South Korea's KOSPI rallied 1.1 percent to 2,135.76 points.Hong Kong’s Hang Seng traded 0.8 percent lower at 24,583.93 points.
Commodities Recap
Crude oil prices surged, extending gains for the second straight session on optimism about recovering fuel demand worldwide, although a surge in coronavirus infections in some U.S. states limited upside. International benchmark Brent crude was trading 0.6 percent higher at $41.67 per barrel by 0531 GMT, having hit a low of $39.45 on Thursday, its lowest since June 16. U.S. West Texas Intermediate was trading 0.5 percent up at $39.27 a barrel, after falling as low as $37.10 on Thursday, its lowest since June 16.
Gold prices declined on a firm dollar and a gain in equities but were headed for their third consecutive weekly gain on worries about rising global cases of the novel coronavirus. Spot gold was trading 0.3 percent down at $1,758.41 per ounce by 0541 GMT, having touched a high of $1,779.44 on Wednesday, its highest since October 2012. U.S. gold futures fell 0.2 percent to $1,766.25. The bullion has gained more than 1 percent so far this week, with prices recording a near 8-year high earlier in the week.
Treasuries Recap
The U.S. Treasury yields edged down, with the benchmark 10-year note yield trading at 0.673 percent, while the 2-year yield was at 0.187 percent.