Posted at 13 August 2020 / Categories Market Roundups
Market Roundup
•Investors cautious ahead of U.S.-China meeting at weekend
•German Jul WPI (YoY) -2.6%,-3.3% previous
•German Jul WPI (MoM) 0.5%, 0.6% previous
•German Jul CPI (YoY) -0.1%, -0.1% forecast, 0.9% previous
•German Jul CPI (MoM) -0.5%, -0.5% forecast, 0.6% previous
•German Jul HICP (YoY ) 0.0%, 0.0% forecast, 0.8% previous
•German Jul HICP (MoM) -0.5%, -0.5% forecast, 0.7% previous
•Spanish Jul CPI (YoY) -0.6%, -0.6% forecast, -0.3% previous
•Spanish Jul CPI (MoM) -0.9%, -0.9% forecast, 0.5% previous
•Italian 30-Year BTP Auction 1.910%,2.490% previous
•Italian 7-Year BTP Auction 0.72%,0.95% previous
•Italian 3-Year BTP Auction 0.08%,0.30% previous
•Irish Jul HICP (YoY) -0.6%,-0.6% previous
•Irish Jul HICP (MoM) -0.2%,0.4% previous
Looking Ahead Economic Data
•12:30 US Import Price Index (YoY) -3.8% previous
•12:30 US Export Price Index (YoY) -4.4% previous
•12:30 US Jobless Claims 4-Week Avg 1,337.75K previous
•12:30 US Continuing Jobless Claims 15,898K forecast, 16,107K previous
•12:30 US Initial Jobless Claims 1,120K forecast, 1,186K previous
•12:30 US Jul Export Price Index (MoM) 0.4% forecast, 1.4% previous
•12:30 US Jul Import Price Index (MoM) 0.6% , 1.4% previous
•13:00 Russia Central Bank reserves (USD) 591.8B previous
•14:30 US Natural Gas Storage 57B forecast, 33B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained on Thursday as dollar lost ground as hopes of more stimulus in the United States waned, while investors awaited a meeting between Washington and Beijing to discuss the Phase 1 trade deal over the weekend. The U.S. dollar, which is already weighed down by a decline in Treasury yields, fell further as investors remained unsure that there would be a compromise between Republicans and Democrats over additional coronavirus aid. Immediate resistance can be seen at 1.1858 (Daily high), an upside break can trigger rise towards 1.1923 (23.6%fib).On the downside, immediate support is seen at 1.1804 (April 21 st low), a break below could take the pair towards 1.1777 (5DMA).
GBP/USD:Sterling rose against the dollar on Thursday as traders shrugged off Wednesday’s dismal economic data but remained cautious about the longer-term outlook for Britain, before Brexit and the end of the UK furlough scheme. Markets were bearish in early trading, with European stocks down and the dollar weaker as investors started to lose hope that the U.S. government would agree on a stimulus deal to support the economy and the millions of workers who have lost their jobs. Immediate resistance can be seen at 1.3116 (Daily high), an upside break can trigger rise towards 1.3176 (23.6% fib).On the downside, immediate support is seen at 1.3044 (14 DMA), a break below could take the pair towards 1.2963 (38.2%fib).
USD/CHF:The dollar dipped against the Swiss franc on Thursday as fading hopes for a compromise between Republicans and Democrats over additional stimulus for the U.S. economy weighed on greenback. President Donald Trump accused congressional Democrats on Wednesday of not wanting to negotiate over a U.S. coronavirus aid package as top Republican and Democratic negotiators traded blame for a five-day lapse in talks over relief legislation. The dollar edged lower against the safe harbour Swiss franc to 0.9105. Immediate resistance can be seen at 0.9121(38.2% fib), an upside break can trigger rise towards 0.9176 (50% fib).On the downside, immediate support is seen at 0.9090 (Daily low), a break below could take the pair towards 0.9054 (23.6% fib).
USD/JPY:The dollar declined against the Japanese yen on Thursday as stalemate in U.S. stimulus talks, trade war angst in both Europe and China and the COVID-19 pandemic increased demand for safe haven yen. Adding to the gloomy outlook, U.S. Federal Reserve policymakers warned U.S. growth would be muted until the coronavirus was contained. Investors are now waiting for U.S. weekly jobless claims data due at 1230 GMT, and watching for developments between the U.S. and China ahead of trade talks on Aug. 15 .Immediate resistance can be seen at 107.21 (100 DMA), an upside break can trigger rise towards 107.57 (38.2% fib).On the downside, immediate support is seen at 106.37 (50% fib), a break below could take the pair towards 105.75 (14 DMA).
Equities Recap
European stocks fell on Thursday as simmering tensions between the United States and China, and elusive U.S. fiscal stimulus, pushed investors to book profits after four straight sessions of gains, while Airbus dipped as Washington left aircraft tariffs unchanged.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading lower at 1.34 percent, Germany's Dax was down by 0.39 percent, France’s CAC was last down by 0.41 percent.
Commodities Recap
Gold firmed above $1,900 on Thursday as the dollar fell, with bargain hunters betting on a resumption of bullion’s broader upwards trend attracted by its recent steep slide from a record peak.
Spot gold was 0.7% higher at $1,930.20 per ounce by 1000 GMT, after slipping below $1,900 in choppy trade the previous session. Prices soared to a record $2,072.50 on Friday.U.S. gold futures eased 0.4% to $1,941.00 per ounce.
Oil prices held steady on Thursday after the International Energy Agency lowered its 2020 oil demand forecast following unprecedented travel restrictions and data showing a decline in U.S. inventories provided some support.
Brent crude fell 12 cents, or 0.3%, to $45.31 a barrel by 1027 GMT, and West Texas Intermediate (WTI) was down 7 cents, or 0.2%, to $42.60 a barrel.