Posted at 28 July 2020 / Categories Market Roundups
Market Roundup
• Spanish Unemployment Rate (Q2) 15.33%,16.70% forecast, 14.41% previous
• Sweden June Retail Sales (MoM) 1.0%,0.5% previous
• Sweden June Retail Sales (YoY) 3.5%, 2.4% previous
• Irish June Retail Sales (YoY) 3.5%,-26.6% previous
• Irish June Retail Sales (MoM) 38.4% , 29.5% previous
• UK Jul CBI Distributive Trades Survey 4, -25 forecast, -37 previous
Looking Ahead - Economic Data (GMT)
• 12:55 US Redbook (MoM) 1.9% previous
• 12:55 US Redbook (YoY) -7.5% previous
• 13:00 US May S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.9% previous
• 13:00 US May S&P/CS HPI Composite - 20 s.a. (MoM) 0.3% forecast, 0.3% previous
• 13:00 US May S&P/CS HPI Composite - 20 n.s.a. (YoY) 4.0%,4.0% previous
• 14:00 US Jul CB Consumer Confidence 94.5 forecast, 98.1 previous
• 14:00 US Richmond Manufacturing Shipments -1 previous
• 14:00 US Jul Richmond Manufacturing Index -27 previous
• 14:00 US Jul Richmond Services Index -28 previous
• 14:00 US Jul Texas Services Sector Outlook 2.1 previous
• 14:00 US Jul Dallas Fed Services Revenues 5.7 previous
Looking Ahead - Economic events and other releases (GMT)
• No Significant events
Fx Beat
EUR/USD: The euro retreated from its two-year high on Tuesday as weakness in dollar waned ahead of two-day Federal Reserve meeting. No monetary policy changes are likely, but traders are speculating about a change in emphasis in the Fed’s forward guidance at the meeting, which starts on Tuesday. The euro was last trading down 0.2% at $1.1708 , off the $1.1781 two-year high reached the day before. Immediate resistance can be seen at 1.1781(Daily high), an upside break can trigger rise towards 1.1823 (23.6% fib).On the downside, immediate support is seen at 1.1698 (38.2% fib), a break below could take the pair towards 1.1661 (5 DMA).
GBP/USD: Sterling retreated from a four-month high on Tuesday as a broad U.S. dollar rout over the past week ran out of steam with negative news from Brexit negotiations prompting hedge funds to take profits. Concerns about the lack of progress of Brexit negotiations also prevented the pound from pushing above the $1.30 levels. The pound slipped 0.08% versus the dollar at $1.2870 after rising to its highest level since March at $1.2977. Immediate resistance can be seen at 1.2923 (Higher BB), an upside break can trigger rise towards 1.3002 (23.6%fib).On the downside, immediate support is seen at 1.2807 (5 DMA), a break below could take the pair towards 1.2710 (38.2% fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors worried about the damage from the coronavirus to the U.S. economy and await the latest outlook from the Federal Reserve and the passage of a new fiscal rescue package. Pressure on the greenback has been relentless since the end of May, as faith in a global economic recovery from the pandemic has grown stronger and other currencies have rallied. At (GMT 12:51), Greenback dipped 0.23% versus the Swiss franc to 0.9579. Immediate resistance can be seen at 0.9223 (5 DMA), an upside break can trigger rise towards 0.9243 (38.2% fib).On the downside, immediate support is seen at 0.9170 (23.6% fib), a break below could take the pair towards 0.9147 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as hopes for a dovish message from the U.S. Federal Reserve weighed on greenback. The U.S. dollar index, which measures the greenback against six other major currencies, is down around 9% from its March highs and is on track for its worst month since 2011, pressured in part by expectations that the United States will take a bigger hit to growth than other economies from the coronavirus pandemic. Strong resistance can be seen at 105.70 (Daily high), an upside break can trigger rise towards 106.15 (5 DMA).On the downside, immediate support is seen at 105.18 (23.6% fib), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares slid on Wednesday as escalating U.S.-China tensions and a surge in coronavirus cases dented sentiment.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading lower at 0.03 percent, Germany's Dax was down 0.43 percent, France’s CAC was last down by 0.73 percent.
Commodities Recap
Gold fell as much as 1.8% on Tuesday from an all-time peak as the dollar firmed and investors squared positions after a rapid rally, while silver fell more than 9%, with the focus turning to the U.S. Federal Reserve policy stance.
Spot gold was 0.5% down at $1,931.84 per ounce by 1136 GMT, retreating from a record $1,980.57 hit earlier, as traders took profits.U.S. gold futures were 0.2% lower at $1,926.70.
Oil prices were steady on Tuesday, with demand worries due to a rise in coronavirus cases worldwide undermining support coming from hopes for additional U.S. economic stimulus measures.
Brent crude was up 7 cents, or 0.2%, at $43.48 a barrel at 1052 GMT, while West Texas Intermediate (WTI) U.S. crude fell 19 cents, or 0.5%, to $41.41 a barrel.
Treasuries Recap
Euro zone government bond yields opened slightly higher on Tuesday but were still near lows reached in the previous session when U.S.-China frictions drove investors to safe-haven assets.
Germany’s 10-year bond yields had their biggest fall in over a month on Monday, as U.S.-China relations deteriorated sharply, turning markets cautious.