Posted at 30 July 2020 / Categories Market Roundups
Market Roundup
• US Q2 GDP numbers show record 33% contraction
•Jobless claims up for second week in a row
• US Jobless Claims 4-Week Avg 1,368.50K ,1,360.25K previous
• US Continuing Jobless Claims 17,018K, 16,200K forecast, 16,197K previous
• US Initial Jobless Claims 1,434K,1,450K forecast, 1,416K previous
• US GDP Price Index (QoQ) (Q2) -2.1%,1.1% forecast, 1.6% previous
• US Core PCE Prices (Q2) -1.10%,1.00% forecast, 1.70% previous
• US GDP (QoQ) (Q2) -32.9%, -34.1% forecast, -5.0% previous
• Russia Central Bank Reserves (USD) 582.7B, 574.0B previous
Looking Ahead - Economic Data (GMT)
• 23:30 Japan June Jobs/applications ratio 1.16 forecast, 1.20 previous
•23:30 Japan June Unemployment Rate 3.1% forecast, 2.9% previous
• 23:50 Japan Jul Industrial Production forecast 1m ahead (MoM) 5.7% previous
•23:50 Japan Aug Industrial Production forecast 2m ahead (MoM) 9.2% previous
• 23:50 Japan June Industrial Production (MoM) 1.2% , -8.9% previous
• 01:00 July China Manufacturing PMI 50.7, 50.9 previous
• 01:30 Australia PPI (YoY) (Q2) 1.3% previous
• 01:30 Australia Private Sector Credit (MoM) 0.1 previous
• 01:30 Japan Construction Orders (YoY) ) 6.1 previous
• 01:30 Japan Construction Orders (YoY) 6.1
• 05:00 Japan June Housing Starts (YoY) -13.7%,-12.3% previous
• 05:00 Japan July Household Confidence 28.4 previous
Looking Ahead – events and other releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro rose against dollar on Thursday as dollar slid after President Donald Trump raised the possibility of delaying the November U.S. election and new government data underscored the coronavirus’ deep economic impact.Trump, facing an immediate pushback from top Republicans, repeated his claims, without evidence, of mail-in voter fraud, writing in a post on Twitter, “delay the election until people can properly, securely and safely vote???”.. Immediate resistance can be seen at 1.1779 (Daily high), an upside break can trigger rise towards 1.1828 (23.6% fib).On the downside, immediate support is seen at 1.1732 (5 DMA), a break below could take the pair towards 1.1700 (38.2% fib).
GBP/USD: Sterling rose against the weaker dollar , but Brexit-related risks and the economic fallout from the coronavirus pandemic kept investors cautious on the currency’s longer-term outlook.The dollar fell after data showed the United States’ economy contracted by 32.9% in the second quarter and U.S. President Donald Trump suggested delaying the November presidential election.The dollar’s weakness pushed up the pound, which hit new four-month highs and was set for its tenth consecutive day of gains. 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 1.2931 (5 DMA), a break below could take the pair towards 1.2823 (9 DMA).
USD/CAD: The Canadian dollar fell to a one-week low against its U.S. counterpart on Thursday as a drop in oil prices offset broad-based weakness for the greenback. The loonie was trading 0.8% lower at 1.3441 to the greenback. The currency touched its weakest intraday level since July 22 at 1.3459. U.S. crude prices settled 3.3% lower at $39.92 a barrel as U.S. political uncertainty and data showing the U.S. economy suffered its steepest contraction since the Great Depression weighed. Oil is one of Canada's major exports. .Immediate resistance can be seen at 1.3477 (14 DMA), an upside break can trigger rise towards 1.3501 (23.6%fib ).On the downside, immediate support is seen at 1.1340 (Psychological level), a break below could take the pair towards 1.3329 (Daily low).
USD/JPY: The dollar declined against the Japanese yen on Thursday after the Federal Reserve offered no real clues about its next moves, beyond an expected pledge to keep policy easy as a fresh surge in coronavirus infections stalls the U.S. economic recovery. That was a letdown to some dollar bears who had speculated the Fed might loosen its approach to inflation, something they now think could happen at its next meeting in September. The yen dipped 0.3% to 105.24 per dollar, but edged higher on other majors as the mood stayed pretty cautious and focus turned to forthcoming U.S. and European data. Strong resistance can be seen at 105.35 (5 DMA), an upside break can trigger rise towards 105.83 (38.2% fib).On the downside, immediate support is seen at 104.74 (Daily low), a break below could take the pair towards 104.40 (23.6% fib).
Equities Recap
European shares sank to a one-month low on Thursday, hit by underwhelming earnings reports, a dire reading of the German economy’s health and U.S. President Donald Trump raising the possibility of delaying November’s presidential election.
UK's benchmark FTSE 100 closed down by 2.31 percent, Germany's Dax ended down by 3.46 percent, France’s CAC finished the day down by 2.13 percent.
Wall Street halted a record run on Friday as U.S. President Donald Trump contradicted reports that the United States and China would roll back existing tariffs.
Dow Jones closed down by 0.85 percent, S&P 500 was down 0.34 percent, Nasdaq was up by 0.43 up percent.
Commodities Recap
Gold fell on Thursday as the dollar stalled its slide, with analysts saying bullion may face more resistance in its bid to breach the $2,000 level.
Spot gold was 1.0% lower at $1,951.42 per ounce by 1220 GMT, having earlier fallen as much as 1.3% to $1,944.76.
Oil prices fell by around 4% on Thursday, as surging coronavirus infections around the world threatened to jeopardise a recovery in fuel demand just as major oil producers are set to raise output.
U.S. West Texas Intermediate (WTI) crude futures were down $1.52, or 3.7%, at $39.75 a barrel at 1401 GMT.
The most-active Brent crude contract for October fell $1.35, or 3.1%, to $42.74 a barrel, while September Brent, which expires on Friday, fell $1.34 to $42.41 a barrel.