Posted at 20 July 2020 / Categories Market Roundups
Market Roundup
• German June WPI (MoM) 0.6%,-0.6% previous
• German June German WPI (YoY) -3.3%,-4.3% previous
• German June German PPI (YoY) -1.8%,-1.6% forecast, -2.2% previous
• German June German PPI (MoM) 0.0%,0.2% forecast, -0.4% previous
• EU May Current Account n.s.a. -10.5B, 10.2B previous
• EU May Current Account 8.0B, 14.4B previous
• Belgium Jul Consumer Confidence -20, -19 previous
Looking Ahead - Economic Data (GMT)
• 13:00 French 12-Month BTF Auction -0.557% previous
• 13:00 French 6-Month BTF Auction -0.552% previous
• 13:00 French 3-Month BTF Auction -0.555% previous
• 13:30 Brazil Federal Tax Revenue 77.40B previous
• 13:30 US 6-Month Bill Auction 0.145% previous
•15:45 Russia June Unemployment Rate 6.3%- forecast,6.1% previous
• 15:45 Russia Retail Sales (YoY) -12.3% forecast,-19.2% previous
• 15:45 Russian May Real Wage Growth (YoY) -3.5% forecast, -2.0% previous
Looking Ahead - Economic events and other releases (GMT)
• 14:30 EU ECB's Lane Speaks
•15:10 UK BoE MPC Member Haldane Speaks
•15:10 UK MPC Member Tenreyro Speaks
Fxbeat
EUR/USD: The euro retreated from four month high of $1.1467 it reached on Monday amid hopes the European Union would agree on a recovery fund to help revive EU economies hit by the COVID-19 pandemic. EU leaders have made progress in Brussels after three days of talks, but they remain at odds over how to carve up the proposed 750 billion euros ($859 billion) recovery fund designed to help Europe cope with its deepest recession since World War Two. The euro was last up 0.2% at $1.1446. Immediate resistance can be seen at 1.1464 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1411 (Daily low), a break below could take the pair towards 1.1369 (23.6% fib).
GBP/USD: Sterling strengthened against dollar on Monday as EU leaders appeared to make some headway after three days of haggling on a plan to revive their economies, even as coronavirus cases increased in many countries. As a new round of Brexit negotiations between Britain and the EU begin, hopes for a trade deal in time for the year-end expiry of the transition period following the UK’s departure from the bloc are fading fast. Sterling changed hands at $1.2617 at 1130 GMT, up 0.3% since New York's close, having fallen overnight before recovering from around 0400 GMT. Immediate resistance can be seen at 1.2636 (Daily high), an upside break can trigger rise towards 1.2686 (Higher BB).On the downside, immediate support is seen at 1.2602 (38.2% fib), a break below could take the pair towards 1.2545 (14 DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as a spike in global coronavirus cases hung over markets awaiting efforts from the euro zone and United States to stitch together fiscal stimulus plans to fight the pandemic. Investor focus is on a European Union Summit where leaders are haggling over a plan to revive economies throttled by the coronavirus pandemic. The leaders are at odds over how to carve up a vast recovery fund designed to help haul Europe out of its deepest recession since World War Two, and what strings to attach for countries it would benefit. Immediate resistance can be seen at 0.9418 (14 DMA), an upside break can trigger rise towards 0.9473 (38.2% fib).On the downside, immediate support is seen at 0.9371 (23.6% fib), a break below could take the pair towards 0.9300 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen Monday as surging number of coronavirus cases kept demand for safe haven yen. The World Health Organization reported a record increase in coronavirus cases for the second day in a row on Saturday, with the total rising by 259,848 in 24 hours. More than 14 million people have been infected globally so far, and nearly 602,000 have died. Strong resistance can be seen at 107.27 (14 DMA), an upside break can trigger rise towards 107.50 (50% fib).On the downside, immediate support is seen at 106.69 (Ichimoku Cloud Base), a break below could take the pair towards 106.51 (38.2% fib).
Equities Recap
European shares fell on Monday, dragged down by cyclical sectors amid a surge in coronavirus cases globally, while investors remained cautiously optimistic about the ongoing talks over an EU-wide recovery fund.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading down at 0.49 percent, Germany's Dax was up by 0.45 percent, France’s CAC finished was up by 0.02 percent.
Commodities Recap
Gold prices inched up on Monday as escalating numbers of coronavirus cases around the world raised concerns over the pace of economic recovery and fuelled expectations of more stimulus measures.
Spot gold was up 0.1% at $1,810.79 per ounce by 1010 GMT, while U.S. gold futures were also 0.1% higher at $1,812.30.
Oil prices fell on Monday as coronavirus cases increased in many countries across the globe, but investors remained cautiously optimistic about ongoing talks over a European Union recovery fund to revive economies affected by the pandemic.
Brent crude was down 35 cents, or 0.8%, at $42.79 per barrel by 1121 GMT, while U.S. West Texas Intermediate (WTI) slipped 36 cents, or 0.9%, to $40.23.
Treasuries Recap
Italy’s borrowing costs fell to their lowest since early March on Monday as signs of a potential agreement started to emerge from a fraught European Union summit aimed at agreeing a 750 billion euro economic recovery fund.
Italy’s 10-year yield fell to its lowest since March 9 at 1.19%, wiping out much of the coronavirus sell-off that drove them as high as 3%. It was last down 4 basis points on the day at 1.21%