Posted at 01 July 2020 / Categories Market Roundups
Market Roundup
• U.S. ISM Manufacturing data hits over one-year high
• US Private payrolls miss expectations in June – ADP
• U.S. marks record single-day spike in virus cases
• US June ADP Nonfarm Employment Change2,369K, 3,000K forecast, -2,760K previous
• US Seevol Cushing Storage Report -1.637M,-0.183M previous
• US June Manufacturing PMI 49.8, 49.6 forecast, 39.8 previous
• US June ISM Manufacturing New Orders Index 56.4, 31.8 previous
• US June ISM Manufacturing PMI 52.6 ,49.5 forecast, 43.1 previous
• US June ISM Manufacturing Employment 42.1, 43.0 forecast, 32.1 previous
• US June ISM Manufacturing Prices 51.3, 43.0 forecast, 43.0 previous
• US Construction May Spending (MoM) -2.1%, 1.0% forecast, -2.9% previous
• US Crude Oil Inventories -7.195M,-0.710M forecast, 1.442M previous
Looking Ahead - Economic Data (GMT)
• 22:00 New Zealand NZIER QSBO Capacity Utilization (Q2) 92.1% previous
• 22:00 New Zealand NZIER Business Confidence (Q2) -70% previous
• 23:50 Japan Monetary Base (YoY) 3.9% previous
• 23:50 Japan Foreign Bonds Buying 1,542.0B previous
• 23:50 Japan Foreign Investments in Japanese Stocks -421.9B previous
• 01:30 Australia May Exports (MoM) -11% previous
• 01:30 Australia May Imports (MoM) -10% previous
• 01:30 Australia May Trade Balance 8.800B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro gained against dollar on Wednesday as improved European economic data lifted euro across the board. With transmission rates of the coronavirus falling in much of Europe, and economies opening up, IHS Markit’s final euro zone Manufacturing Purchasing Managers’ Index (PMI) moved closer to the 50-mark separating growth from contraction in June. Germany’s manufacturing sector also contracted at a slower pace as Europe’s largest economy lifted restriction. The euro fell 0.2% versus the dollar to $1.1251 at 20:48 GMT. Immediate resistance can be seen at 1.1292 (23.6% fib), an upside break can trigger rise towards 1.1289 (23.6% fib).On the downside, immediate support is seen at 1.1236 (5DMA), a break below could take the pair towards 1.1162 (38.2% fib).
GBP/USD: Sterling rose against dollar on Wednesday after upbeat U.S. data clipped safe-haven demand for dollars and as British manufacturing survey data pointed to a small increase in output after the historic collapse caused by the coronavirus. The Purchasing Managers Index survey for June came in at 50.1, in line with a forecast from economists polled by Reuters and up from 40.7 in May. It was unrevised from a preliminary reading. The move above the 50 line signifies growth for the first time since February. After earlier trading flat, the pound was up 0.4% to $1.2475 by 20:48 GMT. Immediate resistance can be seen at 1.2441 (14 DMA), an upside break can trigger rise towards 1.2516 (38.2% fib).On the downside, immediate support is seen at 1.2362 (5 DMA), a break below could take the pair towards 1.2306 (50% fib).
USD/CAD: The Canadian dollar strengthened on Wednesday against its U.S. counterpart following data pointing to a recovery in manufacturing and on bets for a COVID-19 vaccine, while the risk-on mood pushed the U.S. dollar lower. U.S. manufacturing activity data on Wednesday is forecast to show a recovery from an 11-year low in April while the non-farm payrolls report on Thursday is expected to show the economy added 3 million jobs in June. Brent crude rose 2.0% to $42.10 a barrel, while U.S. crude was up 2.1% at $40.10 a barrel. Immediate resistance can be seen at 1.3611 (5 DMA), an upside break can trigger rise towards 1.3621 (5 DMA).On the downside, immediate support is seen at 1.3550 (21DMA), a break below could take the pair towards 1.3475 (23.6% fib).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as dollar was bogged down in worries about surging coronavirus cases in the United States on Wednesday, even as a slew of data hinted at signs of an economic recovery. Coronavirus cases surged, with the United States recording 47,000 new infections on Tuesday, its biggest single-day spike since the pandemic began. Strong resistance can be seen at 107.83 (100 DMA), an upside break can trigger rise towards 108.27 (61.8% fib).On the downside, immediate support is seen at 107.37 (50DMA), a break below could take the pair towards 106.72 (38.2 %fib ).
Equities Recap
Equities Recap
Hopes of a COVID-19 vaccine pulled European stocks from losses earlier on Wednesday, after fears of a no-deal Brexit and anxieties relating to the European Union’s recovery fund had weighed on sentiment.
UK's benchmark FTSE 100 closed down by 0.19 percent, Germany's Dax ended down by 0.41 percent, France’s CAC finished the day down by 0.18 percent.
U.S. stock markets gained on Wednesday following a string of data pointing to a recovery in manufacturing, and on bets for a COVID-19 vaccine.
Dow Jones closed down by 0.30 percent, S&P 500 closed up by 0.50 percent, Nasdaq settled up by 0.95 % percent.
Treasuries Recap
U.S. Treasury yields on the long end of the curve shot higher on Wednesday after data showed manufacturing activity rebounded in June and minutes from the Federal Reserve's last meeting indicated yield curve control was not coming anytime soon.
The benchmark 10-year yield was last up 2.9 basis points at 0.6824%.
Commodities Recap
Gold dropped from a near eight-year high on Wednesday as equities gained on the back of encouraging U.S. manufacturing data and rising hopes for a potential COVID-19 vaccine.
Spot gold fell 0.6% to $1,770.57 per ounce by 1:31 p.m. EDT (1731 GMT), having earlier hit a peak since October 2012 at $1788.96. U.S. gold futures settled down 1.1%, at $1,779.90.
Oil prices rose more than 1% on Wednesday following a drawdown in U.S. crude inventories from record highs and a string of positive manufacturing data, but a surge in coronavirus cases tempered gains.
Brent crude rose 76 cents, or 1.8%, to settle at $42.03 a barrel. U.S. crude rose 55 cents, or 1.4%, to settle at $39.82 a barrel.