Posted at 29 July 2020 / Categories Market Roundups
Market Roundup
• German June Import Price Index (YoY) -5.1%,-5.1% forecast, -7.0% previous
• German June Import Price Index (MoM) 0.6%, 0.5% forecast, 0.3% previous
• French Jul Consumer Confidence 94, 99 forecast, 97 previous
• Spanish June Retail Sales (YoY) -4.7%,-17.6% forecast, -19.0% previous
• Italian June PPI (YoY) -4.5%,-5.3% previous
• UK Net Lending to Individuals 1.8B, -3.4B previous
• UK June M4 Money Supply (MoM) 1.0%,2.0% previous
• UK June Mortgage Approvals 40.01K, 33.90K forecast, 9.27K previous
• UK June Mortgage Lending 1.89B, 1.80B forecast, 1.22B previous
•US MBA Purchase Index 306.1, 310.9 previous
• US MBA Mortgage Refinance Index 3,955.9, 3,973.3 previous
• US MBA Mortgage Market Index 841.9, 848.8 previous
• US Wholesale Inventories (MoM) -2.0%, -1.2% previous
• US June Goods Trade Balance -70.64B, -75.26B previous
• US June Retail Inventories Ex Auto -0.8%, -1.6% previous
Looking Ahead - Economic Data (GMT)
• 13:00 Brazil June Bank lending (MoM) (Jun) Bank lending (MoM) 0.3% previous
• 13:30 Seevol Cushing Storage Report 0.769M previous
• 14:00 US June Pending Home Sales (MoM) 15.0% forecast,44.3% previous
• 14:00 US June Pending Home Sales Index 99.6 previous
•14:00 US Gasoline Inventories -0.733M forecast, -1.802M previous
•14:30 US Crude Oil Inventories 0.357M forecast, 4.892M previous
Looking Ahead - Economic events and other releases (GMT)
• 18:00 US FOMC Statement FOMC Statement
• 18:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
• 18:00 US FOMC Press Conference
Fx Beat
EUR/USD: The euro was little changed against dollar on Wednesday as investors awaited the U.S. Federal Reserve’s latest policy meeting. The Fed is expected to sound reassuringly accommodative at its policy review later in the day and perhaps open the door to a higher tolerance for inflation - something dollar bears think could squash real yields and sink the currency even further.Investors are also focused on U.S. Congress and White House as they clash over new measures to replace enhanced coronavirus unemployment benefits that are due to expire on Friday. Immediate resistance can be seen at 1.1779 (27th July high), an upside break can trigger rise towards 1.1828 (23.6% fib).On the downside, immediate support is seen at 1.1700 (23.6% fib), a break below could take the pair towards 1.1685 (5 DMA).
GBP/USD: Sterling strengthened against dollar on Wednesday as the impression grew that the rest of the world was handling the coronavirus pandemic better than the United States. The pound rose to above $1.29 to a five-month high of $1.2977, close to its pre-coronavirus levels. It was unchanged versus the euro at 90.66 pence. A statement and news conference at the end of the two-day U.S. Federal Reserve meeting is due later in the session. The Fed is expected to reiterate its accommodative stance when it wraps up its two-day policy meeting on Wednesday afternoon. Immediate resistance can be seen at 1.3002 (23.6% fib), an upside break can trigger rise towards 1.3125 (10 March high).On the downside, immediate support is seen at 1.2918 (Daily low), a break below could take the pair towards 1.2855 (5 DMA).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as resurgence of COVID-19 cases kept investors cautious as they awaited news from the U.S. Federal Reserve’s latest policy meeting. Deaths from coronavirus in the United States registered their biggest one-day increase since May on Tuesday, with this month’s spike in infections having forced some states to make a U-turn on the reopening of their economies. At (GMT 12:51), Greenback dipped 0.23% versus the Swiss franc to 0.9579. Immediate resistance can be seen at 0.9203 (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 0.9132 (Daily low).
USD/JPY: The dollar little changed against the Japanese yen on Wednesday as investors awaited U.S. Federal Reserve policy meeting later in the day. Investors were also monitoring a political deadlock in the U.S. Congress over a $1 trillion aid plan. U.S. Senate Republicans announced on Monday a $1 trillion coronavirus aid package hammered out with the White House, but the proposal sparked immediate opposition from Democrats who decried it as too limited and some Republicans who called it too expensive. Strong resistance can be seen at 105.17 (23.6% fib), an upside break can trigger rise towards 105.65 (5 DMA).On the downside, immediate support is seen at 104.81 (Daily low), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European stocks were largely flat on Wednesday as investors parsed through a deluge of earnings reports from major lenders like Deutsche Bank and Barclays, while waiting to hear from the U.S. Federal Reserve.
At (GMT 12:45 ),UK's benchmark FTSE 100 was last trading lower at 0.18 percent, Germany's Dax was down 0.22 percent, France’s CAC was last up by 0.66 percent.
Commodities Recap
Gold eased on Wednesday as investors booked profits from a record run and caution set in as investors awaited the end of a U.S. Federal Reserve meeting expected to reinforce dovish policy to aid a virus-hit economy.
Spot gold was down by 0.1% at $1,956.39 per ounce by 1153 GMT. Prices hit a record $1,980.57 on Tuesday. U.S. gold futures rose 0.4% to $1,953.20 per ounce.
Oil prices rose on Wednesday after a surprise drop in U.S. crude inventories, but demand concerns amid record increases in COVID-19 infections in some U.S. states capped gains.
Brent crude futures rose 59 cents, or 1.4%, to $43.81 a barrel by 1216 GMT. U.S. West Texas Intermediate crude futures gained 47 cents, or 1.2%, to $41.51 a barrel.
Treasuries Recap
High-grade eurozone government debt yields dropped to their lowest levels in over two months as a cocktail of negative news sent investors scrambling for safe assets.
German 10-year Bund yields dropped to a new two-month low of -0.52% on Wednesday.