Posted at 22 July 2020 / Categories Market Roundups
Market Roundup
• German 30-Year Bund Auction -0.060%, -0.130% previous
• US MBA Purchase Index 310.9, 305.4 previous
• US Mortgage Refinance Index 3,973.3 , 3,774.3 previous
• US Mortgage Market Index 848.8, 815.5 previous
• US MBA 30-Year Mortgage Rate 3.20%,3.19% previous
• US MBA Mortgage Applications (WoW) 4.1%, 5.1% previous
Looking Ahead Economic Data
• 12:30 Canada June Core CPI (YoY) 0.7% previous
• 12:30 Canada June CPI (MoM) 0.4% forecast,0.3% previous
• 12:30 Canada June Core CPI (MoM) -0.1% previous
• 12:30 Canada Trimmed CPI (YoY) 1.7% previous
• 12:30 Canada Median CPI (YoY) 1.9% previous
• 12:30 Canada Common CPI (YoY) 1.4% previous
• 12:30 Canada June CPI (YoY) 0.3% forecast,-0.4% previous
• 13:00 US May House Price Index (YoY) 5.5% previous
• 13:00 US May House Price Index 288.3 previous
• 13:00 US May House Price Index (MoM) 0.2% previous
•14:00 US Existing June Home Sales 4.78M forecast, 3.91M previous
• 14:00 US Existing June Home Sales (MoM ) 24.5% forecast, -9.7% previous
• 14:30 US Gasoline Inventories -1.386M forecast, -3.147M previous
• 14:30 US Crude Oil Inventories -2.088M forecast, -7.493M previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 German Buba Vice President Buch Speaks
•13:15 ECB President Lagarde Speaks
• 15:00 ECB's De Guindos Speaks
Fxbeat
EUR/USD: The euro stood at an 18-month high, benefiting from hopes that key parts of the global economy are heading in the right direction. The euro’s rally gathered steam on that agreement, a huge step toward both recovery and a stronger union, busting through resistance at $1.15 as the dollar faltered. The common currency hit $1.1547 on Wednesday, its best since January 2019. Immediate resistance can be seen at 1.1585 (Daily high), an upside break can trigger rise towards 1.1614 (23.6% fib).On the downside, immediate support is seen at 1.1504 (Daily low), a break below could take the pair towards 1.1494(38.2% fib).
GBP/USD: The British pound drifted away from the one-and-a-half month high on Wednesday, amid worries around the Brexit transition period ending without any deal between Britain and the EU. Sterling was trading down 0.6% versus the dollar at $1.2699 on Wednesday and versus the euro it was 0.5% lower at 91.04 pence. The pound had briefly risen above $1.27 for the first time in six weeks on Tuesday. Immediate resistance can be seen at 1.2746 (Daily high), an upside break can trigger rise towards 1.2857 (23.6% fib).On the downside, immediate support is seen at 1.2642 (Daily low), a break below could take the pair towards 1.2600 (38.2 %fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as dollar was undermined by concern that Republicans and Democrats are struggling to reach consensus on the next round of U.S. economic stimulus measures. Investors expect a massive amount of fiscal spending to support growth in major economies but could easily be disappointed if any stimulus falls short of expectations. Immediate resistance can be seen at 0.9370 (23.6% fib), an upside break can trigger rise towards 0.9389 ( 11 DMA).On the downside, immediate support is seen at 0.9300 (Lower BB), a break below could take the pair towards 0.9242 (March 10th low).
USD/JPY: The dollar declined against the Japanese yen Wednesday as unease around the next round of economic stimulus in the United States kept the U.S. dollar subdued. The greenback clawed back earlier losses and inched higher after China said the United States had abruptly told it to close its consulate in the city of Houston, stoking more tension between the countries. Broader risk appetite has improved this week amid progress in developing vaccines for the novel coronavirus and a historic stimulus deal in Europe, reducing the greenback's safe-harbour appeal. Strong resistance can be seen at 107.05 (5 DMA), an upside break can trigger rise towards 107.50 (50% fib).On the downside, immediate support is seen at 106.50 (Lower BB), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares fell on Wednesday as escalating U.S.-China tensions and a surge in coronavirus cases dented sentiment after an EU-wide debt deal sent the region’s markets to four-month highs in the previous session.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.69 percent, Germany's Dax was down by 0.35 percent, France’s CAC was down at 0.90 percent.
Commodities Recap
Gold surged to a nine-year peak on Wednesday on bets that central banks would introduce more stimulus measures to ease the economic impact of coronavirus, while silver scaled a near seven-year high on hopes of a rebound in industrial activity.
Spot gold hit its highest since September 2011 in early trade at $1,865.35, and by 1113 GMT was up 0.9% at $1,858.39 per ounce. U.S. gold futures were 0.9% higher at $1,859.60.
Oil prices fell on Wednesday as industry data showed a bigger-than-expected rise in U.S. inventories and as tensions escalated between the United States and China.
Brent crude fell 58 cents, or 1.3%, to $43.74 a barrel by 1058 GMT. U.S. West Texas Intermediate (WTI) crude dropped 66 cents, or 1.6%, to $41.26.