Posted at 09 July 2020 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index declined to a near 1-month trough as a rally in riskier assets dented safe-haven demand for the U.S. currency. The greenback against a basket of currencies traded 0.2 percent lower at 96.30, having touched a low of 96.24 earlier, its lowest since June 11.
EUR/USD: The euro rallied to a near 1-month peak after the European Central Bank Vice President Luis de Guindos said that the eurozone economy may have shrunk by less than the 13 percent forecast by the ECB in the three months to the end of June. The European currency traded 0.3 percent up at 1.1364, having touched a high of 1.1370 earlier, its highest since June 11. Investors’ attention will remain on a series of data from Eurozone economies, ahead of the U.S. wholesale inventories and unemployment benefits claims. Immediate resistance is located at 1.1403, a break above targets 1.1422. On the downside, support is seen at 1.1303, a break below could drag it below 1.1278 (5-DMA).
USD/JPY: The dollar eased to a 1-1/2 week low amid lingering worries about the spread of the coronavirus. Global coronavirus cases reached more than 12 million on Wednesday, with more than half a million dead. The major was trading 0.05 percent down at 107.24, having hit a low of 107.18 earlier, its lowest since June 29. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. wholesale inventories and unemployment benefit claims. Immediate resistance is located at 107.44, a break above targets 107.90. On the downside, support is seen at 107.04, a break below could take it near at 106.76.
GBP/USD: Sterling rallied to an over 3-week peak after Britain's finance minister promised an additional 30 billion pounds ($38 billion) to head off an unemployment crisis on Wednesday. The major traded 0.2 percent up at 1.2636, having hit a high of 1.2644 earlier, it’s highest since June 16. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2678, a break above could take it near 1.2691. On the downside, support is seen at 1.2571, a break below targets 1.2535. Against the euro, the pound was trading 0.05 percent up at 89.80 pence, having hit a high of 89.67 on Tuesday, it’s highest since June 18.
AUD/USD: The Australian dollar rose, hovering towards a near 4-week peak hit earlier in the week, as investors shrug off diplomatic tension between Washington and Beijing to focus on China’s improving economy and its attractive technology sector. The major trades 0.1 percent up at 0.6987, having hit a high of 0.6997 on Tuesday, it’s highest since June 11. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7020, a break above could take it near 0.7064. On the downside, support is seen at 0.6942 a break below targets 0.6904 (21-DMA).
Equities Recap
Asian shares nudged higher as investors focused on the upcoming company earnings, hoping that global stimulus efforts will yield upbeat outlooks.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent.
Tokyo's Nikkei surged 0.4 percent to 22,529.29 points, Australia's S&P/ASX 200 index rallied 0.6 percent to 5,955.50 points. South Korea's KOSPI gained 0.6 percent to 2,172.56 points.
Shanghai composite index rose 1.1 percent to 3,439.41 points, while CSI 300 index traded 1.1 percent up at 4,826.33 points.
Hong Kong’s Hang Seng traded 0.05 percent lower at 26,120.53 points. Taiwan shares added 0.2 percent to 12,192.69 points.
Commodities Recap
Crude oil prices consolidated within narrow ranges as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand. International benchmark Brent crude was trading 0.05 percent down at $43.25 per barrel by 0532 GMT, having hit a high of $43.68 on Monday, its highest since June 23. U.S. West Texas Intermediate was trading 0.1 percent lower at $40.81 a barrel, after rising as high as $41.07 on Wednesday, its highest since June 23.
Gold prices steadied near a 9-year peak above the key $1,800/oz level as worries over mounting COVID-19 cases offset hopes of a swift global economic recovery. Spot gold was trading 0.2 percent higher at $1,812.40 per ounce by 0550 GMT, hovering towards a high of $1,818.09 on Wednesday, its highest since September 2011. U.S. gold futures were flat at $1,819.80.
Treasuries Recap
The U.S. Treasury yields edged lower, with the benchmark 10-year note yield trading at 0.654 percent.