Posted at 06 July 2020 / Categories Market Roundups
Market Roundup
• German May Factory Orders (MoM) 10.4%,15.0% forecast, -25.8% previous
• German June IHS Markit Construction PMI 41.3 , 40.1 previous
• UK Housing Equity Withdrawal (QoQ) -5.1B, -5.1B previous
• EU July Sentix Investor Confidence -18.2, -10.9 forecast, -24.8 previous
• UK June Construction PMI 55.3, 47.0 forecast, 28.9 previous
• EU May June Retail Sales (YoY) -5.1%, -7.5% forecast, -19.6% previous
• EU May Retail Sales (MoM) 17.8%,15.0% forecast, -11.7% previous
• Russian July Forex Intervention -125.6B, -140.0B forecast, -203.7B previous
• Spanish Consumer Confidence 60.7, 52.9 previous
Looking Ahead - Economic Data (GMT)
• 13:00 Brazil Auto Sales (MoM) 11.6% previous
• 13:00 Brazil Auto Production (MoM) 2,232.4% previous
• 13:45 US June Services PMI 46.7 forecast, 37.5 previous
• 13:45 US June Markit Composite PMI 46.8 forecast, 37.0 previous
• 14:00 US June ISM Non-Manufacturing Business Activity 49.0, 41.0 previous
• 14:00 US June CB Employment Trends Index 46.28 previous
• 14:00 US June ISM Non-Manufacturing Employment 31.8 previous
• 14:00 US June ISM Non-Manufacturing PMI 50.1 forecast, 45.4 previous
• 14:00 US June ISM Non-Manufacturing New Orders 41.9 previous
• 14:00 US June ISM Non-Manufacturing Prices 55.6 previous
• 15:00 Russian Jul Forex Intervention -163.0B forecast, -203.7B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro rose against dollar on Monday as euro was boosted after data showed Euro zone retail sales rose in May. Consumers in the euro zone returned en masse to shops in May as lockdowns were eased in the bloc, estimates from the EU statistics agency showed on Monday, signalling a sharp recovery of sales after record drops in March and April. Sales in the 19 countries sharing the euro zone rose by 17.8% in May from April, Eurostat said, in the steepest increase since euro zone records for retail sales began in 1999.The rise was higher than market expectations of a 15% rise on the month. Immediate resistance can be seen at 1.1348 (23rd June high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1292 (23.6% fib), a break below could take the pair towards 1.1240 (Daily low).
GBP/USD: Sterling gained against the dollar on Monday as traders looked ahead to this month’s Brexit negotiations and more government support measures expected later this week. Traders expect more clarity by the end of July on whether Britain will agree a trade deal with the European Union. Britain left the EU in January, but it has full access to the bloc during a transition that runs until the end of December. Britain and the EU need to make progress on access to EU financial markets. On the data front, business survey that showed British construction companies returned to growth in June for the first time since the coronavirus lockdown began, albeit from low levels. Immediate resistance can be seen at 1.2535 (38.2% fib), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2454 (Daily low), a break below could take the pair towards 1.2422 (5 DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as investors awaited data expected to show the U.S. services sector stopped contracting, and highlighting the economic recovery from the coronavirus pandemic. A steady rise of new coronavirus infections in the United States has discouraged some investors from taking on excessive risk, but most market participants remain focused on the growing likelihood that major economies will continue to recover. Immediate resistance can be seen at 0.9449 (38.2% fib), an upside break can trigger rise towards 0.9500 (Psychological level).On the downside, immediate support is seen at 0.9395 (Lower BB), a break below could take the pair towards 0.9343 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Monday as investors awaited U.S. services sector data. The Institute for Supply Management’s index for non-manufacturing activity due later on Monday is expected to rise to 50.0 in June from 45.4 in the previous month, indicating activity stopped shrinking. The greenback also dipped as concerns about resurgence in U.S. coronavirus infections offset growing optimism about the economy. Strong resistance can be seen at 107.77(Higher BB), an upside break can trigger rise towards 108.03 (Higher BB).On the downside, immediate support is seen at 107.28 (50% fib ), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares headed towards a one-month high on Monday, with a rally in China’s markets setting an upbeat tone as investors banked on the world’s second biggest economy to lead a recovery from the coronavirus-induced slump.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 1.77 percent, Germany's Dax was up by 1.69 percent, France’s CAC finished was up by 1.70percent.
Commodities Recap
Gold prices edged higher on Monday, supported by worries over surging coronavirus cases, while an uptick in risk appetite among investors limited upside for the safe-haven metal.
Spot gold was up 0.1% to $1,776.29 per ounce by 0709 GMT. U.S. gold futures fell 0.3% to $1,785.
Oil prices were mixed on Monday, with Brent crude edging higher, supported by tighter supplies and positive economic data, while U.S. benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb fuel demand in the United States.
Brent crude was up 41 cents, or 1%, to $43.21 per barrel by 1042 GMT. U.S. West Texas Intermediate (WTI) crude was down 5 cents, or 0.1%, at $40.60.
Treasuries Recap
Germany’s benchmark 10-year Bund yield edged up on Monday, pulling further away from recent five-week lows in the face of rallying equity markets.
Germany’s benchmark 10-year Bund yield was up around a basis point at -0.42%, holding above five-week lows hit last week at around -0.49%.