Posted at 03 July 2020 / Categories Market Roundups
Market Roundup
Economic Data Ahead
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FX Beat
DXY: The dollar index held firm as investors remained on the sidelines during the extended Independence Day holiday weekend starting on Friday. The greenback against a basket of currencies traded flat at 97.21, having touched a low of 96.81 on Thursday, its lowest since June 24.
EUR/USD: The euro declined, extending previous session losses, as unemployment in the eurozone edged up in May, indicating that furlough schemes providing temporary layoff are keeping many of those laid off during the COVID-19 pandemic out of the main unemployment records. The European currency traded 0.05 percent down at 1.1234, having touched a high of 1.1302 on Thursday, its highest since June 24. Investors’ attention will remain on a series of data from Eurozone economies, and EZ service PMI, as U.S. markets are closed for observing Independence Day on July 4. Immediate resistance is located at 1.1267 (21-DMA), a break above targets 1.1287. On the downside, support is seen at 1.1215, a break below could drag it below 1.1185.
USD/JPY: The dollar consolidates with narrow ranges as a resurgence of the coronavirus in the United States discouraged some investors from taking on excessive risk. The major was trading flat at 107.49, having hit a high of 108.16 on Wednesday, its highest since June 9. Investors’ will continue to track the broad-based market sentiment, as trading activity was subdued before the U.S. holiday. Immediate resistance is located at 107.75, a break above targets 108.20. On the downside, support is seen at 107.21 (10-DMA), a break below could take it near at 106.73.
GBP/USD: Sterling steadied after tumbling from a 1-week peak in the prior session, as investors assessed the probability of Britain signing a trade deal with the European Union by the end of the year. The major traded 0.05 percent up at 1.2474, having hit a high of 1.2530 on Thursday, it’s highest since June 24. Immediate resistance is located at 1.2518 (21-DMA), a break above could take it near 1.2566. On the downside, support is seen at 1.2413 (10-DMA), a break below targets 1.2359. Against the euro, the pound was trading 0.05 percent up at 90.08 pence, having hit a high of 90.02 on Thursday, it’s highest since June 25.
AUD/USD: The Australian dollar rose, extending gains for the fourth straight session after data confirmed retail sales rebounded by a record in May. The country's retail sales jumped a seasonally adjusted 16.9 percent in May, from April when it tumbled 17.7 percent. Sales were also up over 5 percent on May last year at A$28.97 billion ($20.06 billion). The major trades 0.3 percent up at 0.6938, having hit a high of 0.6952 on Thursday, it’s highest since June 24. Immediate resistance is located at 0.6970, a break above could take it near 0.7004. On the downside, support is seen at 0.6889 (10-DMA) a break below targets 0.6840.
Equities Recap
Asian shares advanced to a 4-month high on robust U.S. payrolls data and a pickup in Chinese service sector activity, although a surge in coronavirus cases in the United States limited gains.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent.
Tokyo's Nikkei surged 0.7 percent to 22,306.48 points, Australia's S&P/ASX 200 index gained 0.4 percent to 6,057.90 points. South Korea's KOSPI jumped 0.8 percent to 2,152.88 points.
Shanghai composite index rose 1.7 percent to 3,142.90 points, while CSI 300 index traded 1.7 percent up at 4,409.54 points.
Hong Kong’s Hang Seng traded 1.3 percent higher at 25,439.09 points. Taiwan shares added 0.9 percent to 11,909.16 points.
Commodities Recap
Crude oil prices declined, reversing early session gains, as the resurgence of the coronavirus globally and in the United States, stoked worries that a fuel demand recovery could stall. International benchmark Brent crude was trading 0.2 percent down at $42.65 per barrel by 0530 GMT, having hit a high of $43.21 on Thursday, its highest since June 23. U.S. West Texas Intermediate was trading 0.5 percent lower at $40.19 a barrel, after rising as high as $40.73 on Thursday, its highest since June 23.
Gold prices consolidated within narrow ranges, as worries over surging coronavirus cases globally and lingering trade tensions between the United States and China overshadowed strong U.S. jobs data. Spot gold held firm at $1,774.97 per ounce by 0538 GMT, having touched a high of $1,789.26 on Wednesday, its highest since October 2012. U.S. gold futures eased 0.1 percent to $1,787.80.
Treasuries Recap
The yields on Japanese government bond surged, with the 10-year JBG yield rising 0.15 percent.