Posted at 03 August 2020 / Categories Market Roundups
Market Roundup
• Swiss Jul CPI (YoY) -0.9%,-1.1%,-1.3% previous
• Swiss Jul CPI (MoM) -0.2%,-0.4% forecast, 0.0% previous
• Italian Jul Manufacturing PMI 51.9, 51.2 forecast, 47.5 previous
•French Jul Manufacturing PMI 52.4, 52.0 forecast, 52.0 previous
•German Jul Manufacturing PMI 51.0, 50.0 forecast, 45.2 previous
Looking Ahead Economic Data
•French 12-Month BTF Auction -0.556% previous
•French 6-Month BTF Auction-0.562% previous
•French 3-Month BTF Auction -0.565% previous
•13:45 US Jul Manufacturing PMI 51.3 forecast, 49.8 previous
•14:00 US Jul ISM Manufacturing Prices 52.0 forecast, 51.3 previous
•14:00 US Jul ISM Manufacturing Employment 48.3 forecast, 42.1 previous
•14:00 US Jul ISM Manufacturing PMI 53.6 forecast, 52.6 previous
•14:00 US Jul Construction Spending (MoM) 1.0% forecast, -2.1% previous
•14:00 US Jul ISM Manufacturing New Orders Index 56.4 previous
•15:00 Canada June Budget Balance (YoY ) -86.77B previous
•15:00 Canada June Budget Balance -43.93B previous
•15:30 US 3-Month Bill Auction 0.105% previous
•15:30 US 6-Month Bill Auction 0.130% previous
Looking Ahead - Events, Other Releases (GMT)
•16:30 US FOMC Member Bullard Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Monday as rising coronavirus cases and concerns over the U.S. economy weighed on investor sentiment. Investors were nervous at the lack of a new stimulus package in the United States with White House Chief of Staff Mark Meadows not optimistic on reaching agreement soon on a deal.A Bank of England rate decision on Thursday and U.S. jobs data on Friday will also keep investors on the sidelines. Immediate resistance can be seen at 1.1793 (38.2% fib), an upside break can trigger rise towards 1.1829 (23.6%fib).On the downside, immediate support is seen at 1.1701 (50%fib), a break below could take the pair towards 1.1676 (11DMA).
GBP/USD: The pound fell against a stronger dollar on Monday as investors weighed the government’s strategy of local lockdowns and looked ahead to the Bank of England’s policy meeting on Thursday. The pound reached $1.3170 - its highest in nearly five months - on Friday, benefiting from investor caution about rising COVID-19 cases in the United States and data suggesting the economic recovery there was losing momentum. But on Monday the dollar strengthened, pushing cable down to $1.3049 at 12:30 GMT .Immediate resistance can be seen at 1.3113 (Daily high), an upside break can trigger rise towards 1.3174 (23.6%fib).On the downside, immediate support is seen at 1.2959 (38.2%fib), a break below could take the pair towards 1.2886(11 DMA).
USD/CHF: The dollar rose against the Swiss franc on Monday as dollar gained after a punishing July, as squeeze on crowded short positions left the dollar clinging to a tentative bounce. the U.S. dollar ticked 0.1% higher as bears took profits on crowded short positions, but further gains were capped by the slowing U.S. economic recovery from COVID-19 and real rates breaking below -1% for the first time. Immediate resistance can be seen at 0.92010 (50%fib), an upside break can trigger rise towards 0.9261 (61.8% fib).On the downside, immediate support is seen at 0.9161 (38.2% fib), a break below could take the pair towards 0.9101 (23.6%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday ,amid some squeezing out of crowded short positions and safe-haven demand. Markets are now looking to a data-heavy week of inflation and business activity readings, as well as employment figures from the United States on Friday. The dollar gained 0.1% against the Japanese yen to push past the 106 yen per dollar mark.On Friday, the dollar posted its biggest daily rise against the Japanese currency since March, halting a rally in the yen which saw it gain 3% in July. Strong resistance can be seen at 106.36 (50% fib), an upside break can trigger rise towards 107.64 (61.8% fib).On the downside, immediate support is seen at 105.59 (Daily low), a break below could take the pair towards 105.08 (38.2%fib).
Equities Recap
A surge in German stocks lifted the broader European market on Monday after the country reported an expansion in monthly factory activity for the first time since 2018, but a warning from Europe’s biggest lender HSBC kept gains in check.
At (GMT 12:23),UK's benchmark FTSE 100 was last trading up at 1.38 percent, Germany's Dax was down by 2.26 percent, France’s CAC was last up by 1.57 percent.
Commodities Recap
Gold hit a record high on Monday as fears over the economic fallout from rising coronavirus cases bolstered its safe-haven appeal, before inching lower as a bounce in the dollar fuelled some profit-taking.
Spot gold eased 0.2 % to $1,970.69 per ounce at 1211 GMT, having hit a record high of $1,984.66 in early Asian trade. U.S. gold futures were 0.1% higher at $1,986.90.
Oil prices steadied on Monday, pressured by rising COVID-19 cases around the globe and by oversupply worries as OPEC and its allies are set to wind back output cuts in August, but supported by positive industry data in Europe and Asia.
Brent crude rose 3 cents, or 0.1%, to $43.55 a barrel by 1248 GMT, and U.S. West Texas Intermediate (WTI) crude was down 6 cents, or 0.1%, at $40.21.