Posted at 28 July 2020 / Categories Market Roundups
Market Roundup
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FX Beat
DXY: The dollar index rebounded from 2-year lows amid hopes of stimulus extension as U.S. Senate Republicans raced to complete details of a $1 trillion coronavirus aid proposal before enhanced unemployment benefits expire on Friday. The greenback against a basket of currencies traded 0.2 percent up at 93.84, having touched a low of 93.48 on Monday, its lowest since June 2018.
EUR/USD: The euro eased on profit taking after rising to a near 2-year peak in the previous session on the 750 billion euro fund that European Union leaders agreed last week. The European currency traded 0.1 percent lower at 1.1731, having touched a high of 1.1781 on Monday, its highest since September 2018. Investors’ attention will remain on a series of data from Eurozone economies, ahead of the U.S. consumer confidence and Richmond Fed Manufacturing Index. Immediate resistance is located at 1.1815, a break above targets 1.1845. On the downside, support is seen at 1.1660, a break below could drag it below 1.1619 (5-DMA).
USD/JPY: The dollar steadied after slumping to an over 4-month trough in the prior session as the Federal Reserve is expected to reiterate that it will keep rates near zero for years to come when it concludes its two-day policy meeting on Wednesday. The major was trading 0.2 percent up at 105.54, having hit a low of 105.11 earlier, its lowest since March 13. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. consumer confidence and Richmond Fed Manufacturing Index. Immediate resistance is located at 105.96, a break above targets 106.20. On the downside, support is seen at 105.04, a break below could take it near at 104.77.
GBP/USD: Sterling slumped after rising to a 4-1/2 month high earlier in the session, as investors focused on the uncertainty over Brexit and Britain’s economic prospects. Britain and the European Union discussed last week the chances of securing a free trade agreement, with Brussels deeming it unlikely but London hoping that one could be reached in September. The major traded 0.1 percent down at 1.2863, having hit a high of 1.2904 earlier, it’s highest since March 11. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2925, a break above could take it near 1.2943. On the downside, support is seen at 1.2815, a break below targets 1.2775 (5-DMA). Against the euro, the pound was trading 0.1 percent up at 91.16 pence, having hit a low of 91.48 on Monday, it’s lowest since June 29.
AUD/USD: The Australian dollar eased from a near 1-week peak as the greenback steadied across the board. The Aussie trades 0.2 percent down at 0.7137, having hit a high of 0.7177 earlier, it’s highest since July 22. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7198, a break above could take it near 0.7239. On the downside, support is seen at 0.7112, a break below targets 0.7090.
Equities Recap
Asian shares nudged higher as investors weighed progress in U.S. government stimulus efforts against rising tensions with China and the growing coronavirus pandemic.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6 percent.
Tokyo's Nikkei fell 0.3 percent to 22,657.38 points, Australia's S&P/ASX 200 index eased 0.4 percent to 6,020.50 points. South Korea's KOSPI surged 1.8 percent to 2,256.99 points.
Shanghai composite index rose 0.7 percent to 3,228.27 points, while CSI 300 index traded 0.9 percent up at 4,568.75 points.
Hong Kong’s Hang Seng traded 0.4 percent higher at 24,717.83 points. Taiwan shares shed 0.05 percent to 12,586.73 points.
Commodities Recap
Crude oil prices declined as rising coronavirus cases dampened the outlook for demand and countered optimism over more U.S. stimulus. International benchmark Brent crude was trading 0.3 percent down at $43.35 per barrel by 0538 GMT, having hit a low of $42.37 on Monday, its lowest since July 20. U.S. West Texas Intermediate was trading 0.6 percent lower at $41.43 a barrel, after falling as low as $40.51 on Monday, its lowest since July 20.
Gold prices declined from record peaks on profit taking, helping the dollar to rise from 2-year lows. Spot gold eased 0.1 percent to $1,940.05 per ounce by 0558 GMT, having hit an all time high of $1,981.35 earlier. U.S. gold futures climbed 1.4 percent to $1,924.20.
Treasuries Recap
The U.S. Treasury yields edged higher, with the benchmark 10-year note yield trading at 0.621 percent.