Posted at 06 August 2020 / Categories Market Roundups
Market Roundup
• German Jun Factory Orders (MoM) 27.9%,10.1% forecast, 10.4% previous
•EU July IHS Markit Construction PMI 47.1 , 41.3 previous
•Italian Jul Industrial Production (MoM) 8.2%,5.1% forecast, 42.1% previous
• italian JunIndustrial Production (YoY) -13.7%, -16.8% forecast, -20.3% previous
• UK Jul Construction PMI 58.1, 57.0 forecast, 55.3 previous
• Greek May Unemployment Rate 17.0%,15.5% previous
• US Challenger Job Cuts (YoY) 576.1%,305.5% previous
• US Jul Challenger Job Cuts 262.649K, 170.219K previous
Looking ahead Economic Data (GMT)
•12:30 US Initial Jobless Claims 1,415K forecast, 1,434K previous
•12:30 US Continuing Jobless Claims 16,720K forecast, 17,018K previous
•12:30 US Jobless Claims 4-Week Avg 1,368.50K previous
•13:00 Russia Central Bank reserves (USD) 582.7B previous
•13:00 Russia Jul CPI (YoY) 3.4% forecast, 3.2% previous
•13:00 Russia Jul CPI (MoM) 0.4% forecast, 0.2% previous
•Brazil Auto Sales (MoM) 113.6% previous
•Brazil Auto Production (MoM) 129.1% previous
•14:30 US Natural Gas Storage 30B forecast, 26B previous
•16:00 Russia Jul CPI (MoM) 0.4% forecast, 0.2% previous
•16:00 Russia Jul CPI (YoY) 3.4% forecast, 3.2% previous
Looking ahead other events and schedules (GMT)
•14:00 US FOMC Member Kaplan Speaks
•16::00 German Buba Beermann Speaks
Fxbeat
EUR/USD: The euro held near recent high against dollar on Thursday as euro was boosted by upbeat German industrial orders. Orders for German-made goods rose sharply in June in the latest sign that Europe’s largest economy is starting to shrug off the effects of months of lockdown, but volumes were still far below pre-pandemic levels, according to Statistics Office data.Orders rose an adjusted 27.9% compared to the previous month, more than double May’s 10.4% expansion, and far ahead of economists’ forecast of 10.1%. Orders were still 11.3% below the level of February, the last pre-crisis month, though. Immediate resistance can be seen at 1.1929 (23.6%fib), an upside break can trigger rise towards 1.1000 (Psychological level).On the downside, immediate support is seen at 1.1797 (38.2% fib), a break below could take the pair towards 1.1698(50%fib).
GBP/USD: Sterling strengthened to a new five-month high against the dollar and headed for the $1.32 mark after the Bank of England indicated that any move to cut rates below 0% was not imminent despite the economy’s slow recovery from the coronavirus hit.Much of the gain in the pound came shortly after the BoE announcement. The currency rose as much as 0.5% extending its run to a high of $1.3184, highest since March 9, before easing a touch to $1.3152, up 0.3% on the day. Immediate resistance can be seen at 1.3172 (23.6% fib), an upside break can trigger rise towards 1.3200(Psychological level).On the downside, immediate support is seen at 1.3101 (5DMA), a break below could take the pair towards 1.2968 (38.2%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Thursday as appetite for risk dwindled as markets waited for U.S. jobs data and updates about fiscal aid negotiations in Washington. Risk appetite had grown on Wednesday after ISM data in the United States new service industry orders jumped to a record high. But the data also showed that hiring declined, suggesting a labour market recovery is faltering.Immediate resistance can be seen at 0.9123 (38.2%fib), an upside break can trigger rise towards 0.9147 (11DMA).On the downside, immediate support is seen at 0.9049 (23.6% fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar edged lower against the Japanese yen Thursday as investors waited for signs of agreement on a U.S. aid package to counter damage from the coronavirus pandemic. Top congressional Democrats and White House officials appeared to harden their stances on the relief plan on Wednesday, with few hints of compromise or that an unemployment benefit as generous as $600 a week could be reinstated. With figures on jobless claims in the U.S. labour market looming at 1230 GMT, the dollar fell in early trading to a two-year low as investors weighed whether the U.S. economic recovery from the coronavirus. Strong resistance can be seen at 105.93 (14 DMA), an upside break can trigger rise towards 106.32 (50%fib).On the downside, immediate support is seen at 105.15 (38.2% fib), a break below could take the pair towards 104.10 (July 31st low).
Equities Recap
European shares dipped on Thursday as forecasts of a slower post-pandemic economic rebound in the UK hit London stock markets, while disappointing quarterly updates from Glencore and AXA weighed on broader sentiment.
At (GMT 12:25 ),UK's benchmark FTSE 100 was last trading down at 1.68 percent, Germany's Dax was down by 0.77 percent, France’s CAC was down by 1.12 percent.
Commodities Recap
Gold extended its rally on Thursday to within touch of the previous day’s record peak, as the COVID-19 pandemic clouded the economic outlook and boosted bullion’s safe-haven allure, though the rapid pace of gains could prompt some profit-taking.
Spot gold was up 0.5% at $2,050.27 per ounce by 0928 GMT, after hitting an all-time high of $2,055.10 on Wednesday. U.S. gold futures rose 0.7% to $2,063.50.
Oil prices slipped off five-month highs on Thursday as bearish sentiment about fuel demand undermined support from a weak dollar and falling U.S. crude inventories.
Brent crude fell 23 cents to $44.94 a barrel by 1100 GMT, while U.S. crude was down 48 cents at $41.71, breaking a four-day streak of gains.