Posted at 06 August 2020 / Categories Market Roundups
Market Roundup
• US Initial Jobless Claims 1186K, 1,415K forecast, 1,434K previous
• US Continuing Jobless Claims 16107K, 16900K forecast, 16951K previous
• US Jobless Claims 4-Week Avg 1337.75K, 1403K forecast, 1368.75Kprevious
• Russia Central Bank reserves (USD) 582.7B previous
• Russia Jul CPI (YoY) 3.4%, 3.4% forecast, 3.2% previous
• Russia Jul CPI (MoM) 0.4%, 0.4% forecast, 0.2% previous
Looking Ahead Economic Data
•23:30 Japan Average Cash Earnings (YoY) -2.1% previous
•23:30 Japan Jun Household Spending (MoM) 7.5% forecast, -0.1% previous
•23:30 Japan Jun Household Spending (YoY) -7.5% forecast, -16.2% previous
•23:30 Japan Jun Overall wage income of employees -2.3% previous
•23:30 Japan Jun Overtime Pay (YoY) -26.30% previous
•23:50 Japan Jul Foreign Reserves (USD) 1,383.2B previous
•05:00 Japan Jun Coincident Indicator (MoM) -6.7% previous
•05:00 Japan Jun Leading Index (MoM) 0.7% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 Australia RBA Monetary Policy Statement
•01:45 Australia RBA Assist Gov Ellis Speaks
Currencies Summaries
EUR/USD: The euro edged lower on Thursday as dollar rose after U.S. data showed fewer Americans sought jobless benefits last week. The dollar index briefly pared gains before gaining ground following the claims data, which also showed 31.3 million people were receiving unemployment checks in mid-July, suggesting the U.S. labor market was stalling. The dollar index, which measures the dollar against a basket of currencies, was last up 0.3% at 93.057. The index lost 4% in July. The euro was down 0.1% at $1.1844 against the dollar after reaching a two-year high of $1.1916. 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/CAD: The Canadian dollar weakened against the greenback on Thursday as oil prices fell and investors awaited U.S. and domestic jobs data, with the currency retreating from a five-month high reached the day before. The loonie was trading 0.2% lower at 1.3290 to the greenback . The currency, which on Wednesday notched its strongest intraday level since Feb. 21 at 1.3229, traded in a range of 1.3243 to 1.3322. Canada's employment report for July is due on Friday. The data could offer additional evidence of economic recovery from the coronavirus crisis after nearly one million jobs were added in June. Immediate resistance can be seen at 1.3318 (5DMA), an upside break can trigger rise towards 1.3386 (38.6%fib).On the downside, immediate support is seen at 1.3227 (23.6% fib), a break below could take the pair towards 1.3200 (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 and digested better-than-expected U.S. jobless claims data. Economic data released on Thursday painted a mixed picture as Labor Department numbers showed a first fall in jobless claims in three weeks, although a separate report showed a 54% surge in job cuts announced by employers in July.Investors are looking to the next fiscal aid package to further cope with fallout from the COVID-19 pandemic. But Senate Majority Leader Mitch McConnell said on Thursday Republicans and Democrats remained far apart over what to include in another wave of relief. 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 equities declined on Thursday as London stocks were sapped after Glencore scrapped its dividend and oil stocks slid, while investors kept a close eye on Washington for progress on U.S. stimulus.
UK's benchmark FTSE 100 closed down by 1.27 percent, Germany's Dax ended down by 0.54 percent, France’s CAC finished the day down by 0.98 percent.
Shares on Wall Street rose on Thursday but moved within narrow ranges, as investors awaited a new fiscal stimulus package to bolster the country’s economy and digested better-than-expected U.S. jobless claims data.
Dow Jones closed up by 0.68% percent, S&P 500 closed down by 0.65% % percent, Nasdaq settled up by 1.00% percent.
Treasuries Recap
The Treasury yield curve flattened slightly on Thursday afternoon as government bond investors, who have expressed doubt about the stability of the U.S. labor market’s recovery this past week, held off from making major moves ahead of Friday’s federal jobs report.
The benchmark 10-year yield was last down 0.3 basis point on the day to 0.540%. The two-year yield was last up 0.2 basis point to 0.119% and the long bond was down 1.7 basis points to 1.202%.
Commodities Recap
Gold extended its record-breaking run on Thursday, driven by expectations of more monetary response as surging virus cases continue to pummel the U.S. economy.
Spot gold hit an all-time high of $2,069.21 per ounce and was up 0.8% at $2,055.87 at 2:10 p.m. EDT (1810 GMT). U.S. gold futures settled 1% higher at $2,069.40.
Oil prices hovered below five-month highs on Thursday, falling after a session in which bearish sentiment about fuel demand counteracted optimism about Iraq’s supply cuts, pushing the benchmarks in and out of positive territory.
Brent crude settled down 8 cents at $45.09 a barrel, while U.S. crude fell 24 cents to $41.95 after a four-day streak of gains.