Posted at 12 August 2020 / Categories Market Roundups
Market Roundup
•US CPI Jul Index, s.a 259.10, 257.21 previous
•US Jul Real Earnings (MoM) -0.6% -2.3% previous
•US Jul CPI, n.s.a (MoM) 0.51% ,0.55% previous
•US Core CPI Index267.72, 266.07 previous
•US Core CPI (MoM ) 0.6% ,0.2% forecast, 0.2% previous
•USCPI (MoM) 0.6% ,0.3% 0.7% previous
•US Core CPI (YoY) 1.6.%,1.1 % forecast,1.2% previous
Looking ahead Economic Data(GMT)
•US Seevol Cushing Storage Report 1.731M, 0.607M previous
•US Gasoline Inventories-0.722M, -0.674M forecast , 0.419M previous
•US Cride Oil inventories-4.512M, -2.875M forecast,7.373 previous
Looking Ahead - Economic events and other releases (GMT)
• No significant data
Currencies Summaries
EUR/USD: The euro gained on Wednesday as stronger-than-expected U.S. CPI numbers, lifted the dollar against euro. Data showed the U.S. consumer price index rose 0.6% last month after rebounding 0.6% in June. Excluding the volatile food and energy components, the CPI jumped 0.6% last month. That was the largest gain since January 1991 and followed a 0.2% rise in June. The market’s focus was on the U.S. stimulus package. Investors are watching for signs a political impasse in Washington over a further rescue package for the pandemic-hit economy can be overcome. Immediate resistance can be seen at 1.1777 (5DMA), an upside break can trigger rise towards 1.1803 (38.2% fib.On the downside, immediate support is seen at 1.1700 (50% fib), a break below could take the pair towards 1.1670 (Lower BB).
GBP/USD: Sterling declined against dollar on Wednesday as data showed Britain’s economy shrank sharply, fuelling coronavirus-led slowdown fears. The economy shrank by 20.4% between April and June, when the country’s coronavirus lockdown was tightest, data showed on Wednesday, representing the largest contraction reported by any major economy so far. Sterling changed hands at $1.3039 at 1600 GMT, up 0.11% since New York's close, having fallen overnight before recovering from around 0400 GMT. Immediate resistance can be seen at 1.3062 (5 DMA), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2968 (38.2%Fib), a break below could take the pair towards 1.2906 (21DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as oil prices rose and investors weighed prospects of U.S. economic stimulus, while Canada's 10-year yield climbed to its highest in more than two months. The loonie was trading 0.3% higher at 1.3266 to the greenback, or 75.38 U.S. cents. The currency, which one week ago notched a five-month high at 1.3229, traded in a range of 1.3259 to 1.3346. Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital. Immediate resistance can be seen at 1.3319 (5 DMA), an upside break can trigger rise towards 1.3385 (Daily high).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 strengthened against the Japanese yen on Wednesday as investors were unnerved by a political deadlock over a new economic stimulus package in the United States. The dollar extended a bounce from last Friday against a basket of currencies as U.S.-China tensions ratcheted higher following President Donald Trump’s ban on U.S. transactions with the Chna-based owners of video-sharing app TikTok and messaging app WeChat.Immediate resistance can be seen at 107.00 (Daily high), an upside break can trigger rise towards 107.56 (38.2%fib).On the downside, immediate support is seen at 106.30 (50 %fib), a break below could take the pair towards 106.17 (5DMA).
Equities Recap
Telecoms stocks boosted European bourses on Wednesday following Liberty Global’s takeover offer for Sunrise Communications, while London’s FTSE 100 gained on bets of domestic stimulus after a collapse in quarterly economic output.
UK's benchmark FTSE 100 closed up at 2.04 percent, Germany's Dax was up by 0.86 percent, France’s CAC finished was up by 0.90 percent.
Wall Street’s main indexes jumped on Wednesday, with the S&P 500 crawling towards a record high in a broad rally led by tech stocks, although some investors were cautious following a stalemate over the new coronavirus relief bill.
Dow Jones was last trading up by 0.98 percent, S&P 500 was last down by 1.46 present, Nasdaq was last down by 2.21 % percent.
Treasuries Recap
U.S. Treasury yields jumped to one-month highs on Wednesday before the Treasury will sell a record amount of 10-year notes, and after data showed a larger-than-expected increase in consumer prices in July.
Benchmark 10-year note yields jumped seven basis points to 0.662% after earlier reaching 0.691%, the highes since July 7. They are up from a low of 0.504% on Thursday.The yield curve between two-year and 10-year notes steepened two basis points to 51 basis points.
Commodities Recap
Gold recovered after dipping below the key $1,900 level at one point on Wednesday and registering its worst fall in seven years in the last session as bleak economic data underscored concerns over a pandemic-led slowdown.
Spot gold climbed 1.8% to $1,945.27 per ounce by 11:03 am EDT (1503 GMT), having dipped as much as 2.5% earlier. U.S. gold futures rose 0.4% to $1,954.30.
Crude prices rose more than 2% on Wednesday after government data showed U.S. oil inventories fell across the board, bolstering hopes that fuel demand in the world’s biggest economy will withstand the coronavirus pandemic.
Brent crude was up 95 cents, or 2.1%, at $45.44 a barrel by 11:02 a.m. EDT (1502 GMT), after falling around 1% on Tuesday.
West Texas Intermediate oil was up $1.00, or 2.5%, at $42.61 a barrel, having dropped 0.8% in the previous session.