Posted at 09 July 2020 / Categories Market Roundups
Market Roundup
• German May Exports (MoM) 9.0%,13.8% forecast, -24.0% previous
• German May Trade Balance 7.6B, 5.2B forecast, 3.2B previous
• German May Imports (MoM) 3.5%,12.0% forecast, -16.5% previous
• German May Current Account Balance n.s.a 6.5B, 7.7B previous
• Canada June Housing Starts 211.7K, 198.0K forecast, 193.5K previous
• US Jobless Claims 4-Week Avg 1,437.25K, 1,503.75K previous
• US Continuing Jobless Claims 18,062K, 18,950K forecast, 19,290K previous
• US Initial Jobless Claims 1,314K, 1,375K forecast, 1,427K previous
• Canada May Building Permits (MoM ) 211.7K ,-17.1% previous
Looking Ahead - Economic Data (GMT)
• 13:00 Russia Central Bank Reserves (USD) 568.3B previous
• 14:00 US May Wholesale Trade Sales (MoM) -4.0% forecast,-16.9% previous
• 14:00 US Wholesale Inventories (MoM) -1.2% forecast, 0.3% previous
• 14:00 US Natural Gas Storage 58B forecast, 65B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro hovered close to the one-month high against dollar on Thursday after German export data failed to meet analysts' expectations. German exports rebounded less than expected in May as demand remained subdued despite the lifting of lockdown measures introduced to contain the spread of the coronavirus. Imports rose by 3.5% after a slump of 16.6% the previous month, suggesting that consumption in Europe’s largest economy remained weak. The trade surplus increased to 7.6 billion euros. Immediate resistance can be seen at 1.1221 (Daily high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1168 (61.8 % fib), a break below could take the pair towards 1.1134 (5 DMA).
GBP/USD: Sterling strengthened against a broadly weaker dollar Thursday as investors delayed responding to finance minister Rishi Sunak’s announcement of plans to revive the economy, while Brexit risks continued to weigh on the British currency. Sunak promised an additional 30 billion pounds ($38 billion) on Wednesday to help the coronavirus-hit economy. Investors barely reacted to the news immediately after the announcement, and sterling was steady on Wednesday a day after hitting three-week highs against both the dollar and euro. Immediate resistance can be seen at 1.2668 (Higher BB), an upside break can trigger rise towards 1.2700 (Psychological level).On the downside, immediate support is seen at 1.2581(38.2%fib), a break below could take the pair towards 1.2506 (July 8th low).
USD/CHF: The dollar declined against the Swiss franc on Thursday as rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency. The dollar is typically seen as a safe haven for investors to park their cash each time a resurgence of the pandemic seems to threaten a global economic recovery. The greenback was 0.5% lower versus the Swiss franc at 0.9381 franc. Immediate resistance can be seen at 0.9407 (5 DMA), an upside break can trigger rise towards 0.9441 (11 DMA).On the downside, immediate support is seen at 0.9359 (23.6% fib), a break below could take the pair towards 0.9300 (Psychological level ).
USD/JPY: The dollar declined against the Japanese yen on Thursday as dollar dipped as investors focussed on the prospect of a gradual, stimulus-induced pick up in the global economy .The number of cases of the novel coronavirus continued to surge in many countries with the global count breaching 12 million on Wednesday. The dollar was last down 0.1% at 107.27 yen. Strong resistance can be seen at 107.40 (5 DMA), an upside break can trigger rise towards 107.88 (Higher BB).On the downside, immediate support is seen at 107.15 (50% fib), a break below could take the pair towards 106.64 (Higher BB).
Equities Recap
European stocks rose on Thursday as software giant SAP signalled a rebound in its business from a coronavirus hit and China’s stock markets extended a rally, supporting risk sentiment in the continent.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading lower at 0.43 percent, Germany's Dax was up by 1.50 percent, France’s CAC was last up by 0.34 percent.
Commodities Recap
Gold held above $1,800 on Thursday, close to the near nine-year peak hit in the previous session, on growing fears that surging coronavirus cases could stall a global economic recovery
Spot gold was little changed at $1,809.19 per ounce at 1133 GMT. It climbed to its highest since September 2011 at $1,817.71 on Wednesday. U.S. gold futures were 0.3% lower at $1,816.
Oil prices edged lower on Thursday as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand.
Brent crude futures fell 21 cents, or 0.4%, to $43.08 by 0908 GMT, after gaining 0.5% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures dipped 25 cents, or 0.6%, to $40.65 a barrel , after rising 0.7% on Wednesday.
Treasuries Recap
Euro zone bond yields held their ground on Thursday, with investors’ main focus expected to be any new developments on the European Union’s recovery fund, which aims to help the region’s economy recover from the coronavirus pandemic.
Germany’s 10-year yield was down 1 basis point to -0.45%, close to one-week lows. Italian 10-year yields were unchanged at 1.28%.