Posted at 09 July 2020 / Categories Market Roundups
Market Roundup
• US Weekly jobless claims rise less than expected
• Euro falls from 1-month high vs dollar
• 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
• Russia Central Bank Reserves (USD) 569.8B, 568.3B previous
• US May Wholesale Trade Sales (MoM) 5.4%, -4.0% forecast,-16.9% previous
• US Wholesale Inventories (MoM) -1.2%, -1.2% forecast, 0.3% previous
• US Natural Gas Storage 56B,58B forecast, 65B previous
Looking Ahead – Economic data
• 22:45 New Zealand June Electronic Card Retail Sales (MoM) 78.9% previous
• 22:45 New Zealand June Electronic Card Retail Sales (YoY) -6.0% previous
• 23:50 Japan June PPI (MoM) 0.4% forecast, -0.4% previous
• 23:50 Japan M2 Money Stock (YoY) 5.1% previous
• 23:50 Japan June PPI (YoY) -1.9% forecast,-2.7% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro declined 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 1.1300 (23.6%fib), an upside break can trigger rise towards 1.1333 (Higher BB).On the downside, immediate support is seen at 1.1256(21 DMA), a break below could take the pair towards 1.1200 (Psychological level).
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/CAD: The Canadian dollar weakened against the greenback on Thursday as investors grew more worried that economic recovery in the United States, Canada's largest trading partner by far, could be pushed back by rising cases of COVID-19.The loonie was trading 0.6% lower at 1.3589 to the greenback, or 73.59 U.S. cents. Earlier in the day, the currency touched its strongest intraday level in more than two weeks at 1.3487.Immediate resistance can be seen at 1.3630 (38.2%fib), an upside break can trigger rise towards 1.3670 (Higher BB).On the downside, immediate support is seen at 1.3559 (5DMA), a break below could take the pair towards 1.3491 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Thursday after U.S. data raised worries about the economy’s recovery and doused enthusiasm for global economic recovery. Jobless claims have been gradually falling, though they remained roughly double their highest point during the 2007-09 Great Recession. Initial claims for state unemployment benefits totaled a seasonally adjusted 1.314 million for the week ended July 4, down from 1.413 million the prior week. The dollar was last down 0.1% at 107.20 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 closed sharply lower on Thursday as Wall Street tumbled after another record surge in U.S. coronavirus cases that raised fears of fresh lockdowns.
UK's benchmark FTSE 100 closed up by 0.39 percent, Germany's Dax ended down by 0.24 percent, France’s CAC finished the day down by 0.02 percent.
The S&P 500 and Dow dropped on Thursday as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and began to shift their focus to earnings, though the Nasdaq registered another record closing high.
Dow Jones closed down by 1.39 percent, S&P 500 ended down by 0.56 percent, Nasdaq finished up by 0.63 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as an auction of 30-year bonds showed continued strong demand for the safe-haven government debt amid the relentless COVID-19 pandemic.
The benchmark 10-year yield was down 3.6 basis points at 0.6168% in afternoon trading.
Commodities Recap
Gold prices retreated on Thursday, a day after vaulting to nearly nine-year highs, as investors embraced the safe-haven greenback in the face of record U.S. coronavirus cases.
Spot gold fell 0.5% to $1,800.35 per ounce by 12:01 p.m. ET (1601 GMT), having surged to its highest since September 2011 at $1,817.71 on Wednesday. U.S. gold futures dipped 0.8% to $1,806.20.
Concerns about renewed coronavirus lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand on Thursday to keep a lid on oil prices.
Brent crude futures were down 9 cents, or 0.2%, to $43.20 by 1429 GMT, after gaining 0.5% on Wednesday, while U.S. West Texas Intermediate (WTI) crude futures slipped 31 cents, or 0.7%, to $40.59, after rising 0.7% the previous day.