Posted at 28 July 2020 / Categories Market Roundups
Market Roundup
• US Redbook (MoM) 1.1%,1.9% previous
• US Redbook (YoY) -8.7%,-7.5% previous
• US May S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.4%,0.9% previous
• US May S&P/CS HPI Composite - 20 s.a. (MoM) 0.0%,0.3% forecast, 0.3% previous
• US May S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.7% , 4.0% forecast,
• US Jul Richmond Services Index -14, -28 previous
• US Jul CB Consumer Confidence 92.6,94.5 forecast,98.1 previous
• US Jul Richmond Manufacturing Index 10, -27 previous 92.6. 94.5 forecast, 98.1 previous
• US Jul Dallas Fed Services Revenues -8.5, 5.7 previous
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Weighted mean CPI (YoY) (Q2) 1.2% forecast,1.7% previous
• 01:30 Australia CPI (YoY) (Q2) -0.4% forecast, 2.2% previous
• 01:30 Australia Weighted mean CPI (QoQ) (Q2) 0.1% forecast, 0.5% previous
• 01:30 Australia Trimmed Mean CPI (YoY) (Q2) 1.4% forecast, 1.8% previous
• 01:30 Australia Trimmed Mean CPI (QoQ) (Q2) 0.1% forecast, 0.5% previous
• 01:30 Australia CPI (QoQ) (Q2) -2.0% forecast, 0.3% previous
Looking Ahead - Economic events and other releases (GMT)
• No Significant events
Currencies summaries
EUR/USD: The euro retreated from its two-year high on Tuesday as traders awaited Federal Reserve meeting on Wednesday. Investors will be watching for any indicatons that the U.S. central bank will increase its purchases of longer-dated debt, implement yield caps or target higher inflation than it has previously indicated when it concludes its two-day meeting on Wednesday. The euro dipped 0.26% against the dollar to $1.1720, after reaching $1.1781 on Monday, the highest since September 2018. 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 held near a four-month high on Tuesday as a broad U.S. dollar rout over the past week ran out of steam and negative news from Brexit negotiations prompted 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 European Union says a deal needs to be done by October to allow time for ratification by the end of the year. 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/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil and gold prices fell, with the loonie pulling back from its highest level in nearly seven weeks reached earlier in the session. The price of oil, one of Canada's major exports, was lower as demand worries due to a rise in coronavirus cases worldwide undermined support coming from hopes for additional U.S. economic stimulus measures. U.S. crude prices were down 0.8% at $41.25 a barrel. Immediate resistance can be seen at 1.3375 (July 28th high), an upside break can trigger rise towards 1.3429 (23.6% fib).On the downside, immediate support is seen at 1.3326 (Daily low), a break below could take the pair towards 1.3300 (Psychological level).
USD/JPY: The dollar bounced off from 2 ½ month low against the Japanese yen on Tuesday but looked primed for further weakness as the United States continued to see a rise in coronavirus cases, while the Federal Reserve is expected to maintain very loose monetary policies. The continued spread of coronavirus is hampering the U.S. economic recovery, while regions like Europe appear to have the virus contained. The dollar index against a basket of currencies gained 0.18% to 93.71, after dropping to 93.47 on Monday, the lowest since June 2018. 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 104.94 (Daily low), a break below could take the pair towards 105.15(23.6% fib).
Equities Recap
European stocks inched higher on Tuesday as investors held out for more U.S. stimulus to limit the economic damage of the COVID-19 pandemic, brushing aside the latest batch of underwhelming quarterly earnings reports from luxury goods makers.
UK's benchmark FTSE 100 closed up by 0.40 percent, Germany's Dax ended down by 0.03 percent, France’s CAC finished the day down by 0.22 percent.
Wall Street closed lower on Tuesday as investors fretted about weakening consumer confidence, disappointing financial results and a smaller than hoped for coronavirus aid plan from U.S. Senate Republicans.
Dow Jones closed down by 0.77% percent, S&P 500 closed down by 0.65% percent, Nasdaq settled down by 1.27% percent.
Treasuries Recap
Longer-term U.S. Treasury yields fell on Tuesday as investors waited for Washington lawmakers to reach a deal on coronavirus relief and took stock of mixed corporate earnings reports.
The benchmark 10-year yield was down 1.9 basis points at 0.5905% in morning trading. The note reached as high as 0.637% earlier in the session.
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.
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 19 cents, or 0.4%, to settle at $43.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.4%, to settle at $41.04 a barrel.