Posted at 11 August 2020 / Categories Market Roundups
Market Roundup
• 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
• US Redbook (YoY) 2.5%,-7.1% previous
• US Redbook (MoM) previous-3.4%,-7.1% previous
• Russia June Trade Balance 5.29B ,4.10B, 3.67B previous
• Russia GDP Quarterly (YoY) (Q2) -8.5%, -9.0% forecast, 1.6% previous
• Looking ahead economic data(GMT)
• 22:45 New Zealand June Permanent/Long-Term Migration 590 previous
• 22:45 New Zealand June External Migration & Visitors -99.00% previous
• 22:45 New Zealand Visitor Arrivals (MoM) -98.4%,82.3% previous
•23:60 Japan Jul M3 Money Supply 1,883.7T previous
•00:30 Australia Aug Westpac Consumer Sentiment -6.1% previous
•01:30 Australia Wage Price Index (QoQ) (Q2) 0.3% forecast, 0.5% previous
• 02:00 RBNZ Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 02:00 New Zealand RBNZ Rate Statement
• 02:00 New Zealand RBNZ Monetary Policy Statement
• 03:00 New Zealand RBNZ Press Conference
EUR/USD: The euro strengthened against dollar on Tuesday as data showing investor sentiment in Germany improved more than expected in August boosted the euro. ZEW survey of economic sentiment rose to 71.5 from 59.3 the previous month,far exceeding a forecast for 58.0 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 1.1722 (Daily low), a break below could take the pair towards 1.1700(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 1.3085(9DMA), an upside break can trigger rise towards 1.3176 (23.6%fib).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/CAD: The Canadian dollar rose against its broadly weaker U.S. counterpart on Tuesday as the prospect of U.S. economic stimulus bolstered oil prices and domestic data showed an unexpected jump in housing starts. Canadian housing starts rose 15.8% to 245,604 units in July, data from the national housing agency showed, as the market continued to bounce back from the COVID-19 crisis. .Immediate resistance can be seen at 1.3331(9 DMA), an upside break can trigger rise towards 1.3385(38.2%fib).On the downside, immediate support is seen at 1.3221(23.6% fib), a break below could take the pair towards 1.3200(Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen as risk appetite soured after a top U.S. Senate official said negotiations in Congress on an additional stimulus package for the virus pandemic have not progressed. U.S. Senate Republican leader Mitch McConnell said White House negotiators have not spoken on Tuesday with Democratic leaders in Congress on coronavirus aid legislation after talks broke down last week. The dollar index rose 0.1% to 93.709, hitting a one-week high hit earlier in the session. Strong resistance can be seen at 106.97 (50%fib), an upside break can trigger rise towards 106.54 (30 DMA).On the downside, immediate support is seen at 105.36 (50 DMA), a break below could take the pair towards 105.95 (9DMA).
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.
UK's benchmark FTSE 100 closed up by 1.74 percent, Germany's Dax ended up by 2.04 percent, France’s CAC finished the day up by 2.41percent.
Wall Street slipped on Tuesday as investors started dumping shares in anticipation of what proved to be the biggest slump in the U.S. economy since the Great Depression.
Dow Jones closed down by 0.38% percent, S&P 500 closed down by 0.80% percent, Nasdaq settled down by 0.69% percent.
Treasuries Recap
U.S. Treasury yields jumped to one-month highs on Tuesday as stocks neared records, reducing demand for safe-haven debt, and before the Treasury will sell its largest-ever amount of 10-year notes on Wednesday.
Benchmark 10-year note yields jumped eight basis points to 0.655%, after earlier reaching 0.661%, the highest since July 13. They are up from a low of 0.504% on Thursday.
Commodities Recap
Gold sank as much as 4.3% on Tuesday, facing its worst one-day rout in 7 years, as a return of risk appetite following encouraging economic numbers and hopes of new coronavirus relief package boosted the S&P 500 to near record highs.
Spot gold tumbled 4.1% to $1,943.54 per ounce, retreating sharply from Friday’s record high of $2,072.50 and was set for its worst day since June 2013.U.S. gold futures dropped 3.9% to $1,960.40.
Oil prices fell about 1% on Tuesday after rising earlier in the session as hopes dimmed for a swift stimulus package to relieve the U.S. economy as coronavirus cases increased globally.
Brent crude futures fell 49 cents, or 1.1%, to settle at $44.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.8%, to finish at $41.61 a barrel.