Posted at 10 August 2020 / Categories Market Roundups
Market Roundup
•Investors eye U.S.-China meet on Aug. 15
• Platinum hits highest in nearly six months; silver jumps
• French 3-Month BTF Auction-0.574% previous
• French 6-Month BTF Auction -0.590% previous
• French 12-Month BTF Auction -0.560% previous
• US Jul CB Employment Trends Index 50.89, 49.00 previous
• US Jul JOLTs Job Openings 5.889M, 5.397M previous
• US 3-Month Bill Auction 0.105%, 0.100% previous
• US 6-Month Bill Auction0.120%, 0.105% previous
Looking Ahead Economic Data (GMT)
•22:40 New Zealand Jul Electronic Card Retail Sales (YoY) 8.0% previous
•22:40 New Zealand Jul Electronic Card Retail Sales (MoM) 16.3% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro declined against dollar on Monday as worries over flaring tensions between the United States and China weighed on sentiment, although signs of a recovery in industrial activity in the world’s second-largest economy capped losses. Better than expected U.S. jobs data on Friday weighed also weighed on euro. Market increasingly focused on two major events this week, the passage of U.S. fiscal stimulus and a China-U.S. meeting this weekend. Immediate resistance can be seen at 1.1803 (38.2% fib), an upside break can trigger rise towards 1.1929 (23.6% fib).On the downside, immediate support is seen at 1.1740 (14DMA), a break below could take the pair towards 1.1702 (50%fib).
GBP/USD: Sterling edged higher against dollar on Monday ahead of UK unemployment and GDP data this week after hitting its biggest daily fall since June against the greenback on Friday.Sterling resumed its role as a risk-driven currency on Friday, with a sharp fall against the dollar as global investors sentiment turned sour amid more friction between China and the United States.The British currency rose 0.2% $1.3053 at 12:30 GMT on Monday against a slightly stronger dollar with investors also focusing on fiscal stimulus in the United States. Immediate resistance can be seen at 1.3097 (5 DMA), an upside break can trigger rise towards 1.3187 (23.6%fib).On the downside, immediate support is seen at 1.2968 (38.2%Fib), a break below could take the pair towards 1.2848 (21DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as commodity prices climbed and domestic data showed the first annual increase in consumer spending in five months, adding to evidence of economic recovery. On Friday, data for July showed a larger-than-expected jobs gain and the strongest rate of expansion in purchasing activity in more than two years. The loonie was trading 0.3% higher at 1.3345 to the greenback. The currency traded in a range of 1.3333 to 1.3394.Immediate resistance can be seen at 1.3385(38.2%fib), an upside break can trigger rise towards 1.3240 (21 DMA).On the downside, immediate support is seen at 1.3300 (Psychological level ), a break below could take the pair towards 1.4289 (38.2% fib)
USD/JPY: The dollar rebounded against the Japanese yen as investors focused on the U.S. aid package and U.S.-China meeting on Aug. 15, as tensions mount between the world’s two largest economies. Investors were circumspect after U.S. President Donald Trump signed two executive orders banning WeChat, owned by Chinese tech giant Tencent, and TikTok in 45 days’ time while announcing sanctions on 11 Chinese and Hong Kong officials. Strong resistance can be seen at 105.81 (14 DMA), an upside break can trigger rise towards 107.00 (50DMA).On the downside, immediate support is seen at 105.53 (11 DMA), a break below could take the pair towards 105.15 (38.2%fib).
Equities Recap
European shares inched higher on Monday as a decline in China’s producer prices slowed and oil prices rose, while investors looked to Washington for signs of more U.S. stimulus.
The UK's benchmark FTSE 100 closed up by 0.31 percent, Germany's Dax ended up by 0.10 percent, and France’s CAC finished the day up by 0.41 percent.
The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill..
Dow Jones closed up at 1.30 percent, S&P 500 ended up 0.27 percent, Nasdaq finished the day down by 0.39 percent.
Treasury Recap
U.S. Treasury yields rose on Monday before the Treasury will sell record amounts of three, 10 and 30-year debt, and as the Dow Jones stocks index hit the highest in more than five months.
Benchmark 10-year note yields increased by a basis point to 0.576%. They dipped as low as 0.504% on Thursday, which was the lowest on record with the exception of March 9, when the yields fell by an extraordinary 30 basis points in one day.
Commodities Recap
Gold prices on Monday retreated from an all-time high hit in the last session as the dollar hovered near a one-week peak, while investors awaited an agreement on a U.S. relief bill to help the pandemic-hit economy.
Spot gold fell 0.2% to $2,030.26 per ounce by 2:09 p.m. EDT (1809 GMT), having hit a record high of $2,072.50 on Friday. U.S. gold futures settled up 0.6% at $2,039.70.
Oil settled higher on Monday, supported by data suggesting Chinese factories were returning to pre-pandemic levels, signs of rising energy demand and hopes for an agreement in the United States on more coronavirus-related economic stimulus.