Posted at 11 August 2020 / Categories Market Roundups
Market Roundup
• UK Claimant Count Change 94.4K, 10.0K forecast, -28.1K previous
• UK June Unemployment Rate 3.9%,4.2% forecast, 3.9% previous
• UK June Average Earnings Index +Bonus -1.2%,-1.1% forecast, -0.3% previous
• UK May Average Earnings ex Bonus -0.2%,0.5% forecast, 1.7% previous
• UK May Employment Change 3M/3M (MoM) -220K, -234K forecast, -126 previous
• German Aug ZEW Economic Sentiment 71.5, 58.0 forecast, 59.3 previous
•German Aug ZEW Current Conditions -81.3, -68.8 forecast, -80.9 previous
•US Jul NFIB Small Business Optimism 98.8, 100.6 previous
• Canada Jul Housing Starts 245.6K, 210.0K forecast,, 211.7K previous
• US Jul PPI (MoM) 0.6%, 0.3% forecast,-0.2% previous
• US Jul Core PPI (MoM) 0.5%, 0.1% forecast,-0.3% previous
• US Jul PPI (YoY) -0.4% ,-0.7% forecast,-0.8% previous
• US Jul Core PPI (YoY) 0.3% 0.4% forecast, 0.1% previous
Looking ahead economic data (GMT)
•12:55 US Redbook (YoY) -7.1% previous
•12:55 US Redbook (MoM) previous
•13:00 Russia June Trade Balance 4.10B, 3.67B previous
•13:30 UK NIESR GDP Estimate -21.2% previous
•15:03 Russia GDP Quarterly (YoY) (Q2) -9.0% forecast, 1.6% previous
•16:00 US MBA Delinquency Rates (QoQ) 4.36% previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday after investor sentiment in Germany improved more than expected in August.The ZEW economic survey of economic sentiment rose to 71.5 from 59.3 points the previous month, far exceeding a forecast for 58.0 in a poll of economists. The euro had been bolstered recently by views that the continent was handling the coronavirus-induced economic slowdown much better than the United States. Immediate resistance can be seen at 1.1806 (38.2% fib), an upside break can trigger rise towards 1.1929 (23.6% fib).On the downside, immediate support is seen at 1.1808(38.2% fib), a break below could take the pair towards 1.1709 (50%fib).
GBP/USD: The British pound climbed towards five-month highs on Tuesday, benefiting from broad-based dollar weakness even as data showed job losses in Britain spiked to their highest levels in more than a decade in the three months to June.Against a basket of rival currencies, the dollar fell nearly 0.5% towards more than two-year lows amid growing concerns the U.S. economy will underperform its rivals due to its struggles to contain the coronavirus pandemic. The pound was broadly up against the greenback, at $1.3120. It hit a March 2020 high of $1.3185 last week. Immediate resistance can be seen at 1.3180 (23.6% fib), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3046 (Daily low), a break below could take the pair towards 1.2966(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors focused on the fiscal stimulus plan in the United States and U.S.-China tensions ahead of key trade talks this week. After talks in Washington over the next round of fiscal stimulus broke down, U.S. President Donald Trump signed executive orders on Saturday, partially restoring enhanced unemployment payments to millions of jobless Americans. The U.S. currency dipped 0.50% versus the Swiss franc to 0.9110 franc. Immediate resistance can be seen at 0.9126 (38.2%fib), an upside break can trigger rise towards 0.9176 (50%fib).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 higher against the Japanese yen as investors clung to hopes of a bipartisan stimulus deal in Washington and U.S. bond yields rebounded from multi-month lows. U.S. congressional leaders and Trump administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal, although it was unclear whether Democrats and Republicans would be able to bridge their differences. Investors are also keeping an eye on the rapidly deteriorating relationship between Washington and Beijing. Strong resistance can be seen at 106.35 (50%fib), an upside break can trigger rise towards 106.54 (30 DMA).On the downside, immediate support is seen at 105.61 (14 DMA), a break below could take the pair towards 105.15 (38.2%fib).
Equities Recap
European stocks rose for a third straight session on Tuesday as automakers gained on strong China sales data, with hopes of a steady economic recovery from the coronavirus crisis boosting global sentiment.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 2.14 percent, Germany's Dax was up by 2.42 percent, France’s CAC finished was up by 2.79 percent.
Commodities Recap
Gold slid more than 2% on Tuesday as the dollar clung to recent gains and risk appetite was boosted by an expected U.S. stimulus deal, prompting investors to take profits from bullion’s explosive run to a record high.
Spot gold fell 2% to $1,987.49 an ounce by 1053 GMT, retreating from last week’s record high of $2,072.50. U.S. gold futures declined 2.1% to $1,996.40.
Crude oil prices rose on Tuesday, underpinned by expectations of a U.S. stimulus to help jumpstart the world’s biggest oil consumer, a rebound in Asian demand as economies reopen and a stronger stock market.
Brent crude added 29 cents, or 0.6%, to $45.28 a barrel, by 0819 GMT. West Texas Intermediate U.S. crude rose 38 cents, or 0.9%, to $42.32 a barrel.