Posted at 17 August 2020 / Categories Market Roundups
Market Roundup
•Canada June Foreign Securities Purchases by Canadians 10.60B, 13.37B previous
•Canada June Foreign Securities Purchases -13.52B, 22.41B previous
•US Aug NY Empire State Manufacturing Index 3.70, 15.00 forecast, 17.20 previous
•French 3-Month BTF Auction -0.571%, -0.576% previous
•French 6-Month BTF Auction -0.605%,-0.631% previous
•French 12-Month BTF Auction-0.571%,-0.565% previous
•US Aug NAHB Housing Market Index 78, 73 forecast, 72 previous
•US 3-Month Bill Auction 0.105%,0.105% previous
•US 6-Month Bill Auction 0.120%,0.120% previous
•Russia Jul Industrial Production (YoY) -8.0%,-8.0% forecast, -9.4% previous
Looking Ahead – Economic Data (GMT)
•23:50 Japan Aug Reuters Tankan Index -44 previous
•03:00 New Zealand Jul RBNZ Offshore Holdings 41.40% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currencies Summaries
EUR/USD: The euro strengthened on Monday as dollar dipped after weak results from a regional manufacturing survey added to doubts sowed by grim data last week that the U.S. recovery is on shaky grounds. The New York Fed’s Empire State business conditions index fell to 3.7 in August versus 17.2 in July, and far lower than the 15 points forecast by economists. The reading indicates a slowdown in the manufacturing sector though the results were partially offset by strong housing data released earlier on Monday. Immediate resistance can be seen at 1.1879 (Daily high), an upside break can trigger rise towards 1.1929 (23.6%fib).On the downside, immediate support is seen at 1.1802 (38.2% fib), a break below could take the pair towards 1.1755 (20 DMA).
GBP/USD: Sterling edged up against the dollar on Monday as investors awaited new round of Brexit negotiations. Brexit trade talks will restart on Tuesday. As Britain and the European Union restart talks to try to agree a trade deal before the end of 2020, traders are bracing for a new round of volatility for the pound that could end the currency’s recent run higher. The pound was at $1.3101 against the dollar by 1926 GMT. Immediate resistance can be seen at 1.3185 23.6% fib), an upside break can trigger rise towards 1.3253 (Higher BB).On the downside, immediate support is seen at 1.3055(5 DMA), a break below could take the pair towards 1.2965 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices climbed and domestic data showed a surge in home sales to a record high, with the loonie nearing its strongest level in nearly seven months. Canadian home sales rose 26% in July from June, posting the highest monthly level ever recorded, the Canadian Real Estate Association (CREA) said, as pent-up demand following lockdowns continued to fuel the market. Immediate resistance can be seen at 1.3247(5 DMA), an upside break can trigger rise towards 1.3291(11DMA).On the downside, immediate support is seen at 1.3182 (23.6%fib), a break below could take the pair towards 1.3161 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen on Monday ahead of the release of minutes this week of the Federal Reserve's last policy meeting. Minutes of the Federal Reserve's latest meeting, due on Wednesday, are expected to provide more insight into the central bank's view of the economic recovery. Speculation is rife the U.S. central bank will adopt an average inflation target, which would seek to push inflation above 2% for some time to make up for the years it has run below. The dollar was last down 0.23% versus the Japanese yen at 106.26. Strong resistance can be seen at 106.17 (9 DMA), an upside break can trigger rise towards 106.72 (50DMA).On the downside, immediate support is seen at 105.76 (61.8%fib), a break below could take the pair towards 105.38 (Aug 7th low).
Equities Recap
European shares closed higher as China-exposed miners jumped on fresh stimulus for the world’s second-largest economy, but concerns about a resurgence of coronavirus cases in the region kept gains in check.
UK's benchmark FTSE 100 closed up by 0.61percent, Germany's Dax ended up by 0.15 percent, France’s CAC finished the day up by 0.18percent.
The Nasdaq surged to a record high close on Monday, while the S&P 500 approached its own record level, with both indexes lifted by Nvidia and other technology stocks.
Dow Jones closed down by 0.31% percent, S&P 500 closed up by 0.27 % percent, Nasdaq settled down by 1.00% percent.
Treasuries Recap
U.S. Treasury yields fell on Monday, retreating a bit from last week's higher levels as the market awaited a new burst of supply to finance stimulus efforts to combat the economic fallout from the coronavirus pandemic.
The benchmark 10-year yield was last down 2.6 basis points at 0.6833%.
Commodities Recap
Gold rose on Monday, consolidating around the $1,950 mark after sliding 4.5% last week, buoyed by a weaker dollar as investors await the fine print on the U.S. Federal Reserve’s strategy to stem the economic toll from the coronavirus.
Spot gold rose 0.6% to $1,954.74 an ounce by 1157 GMT and U.S. gold futures rose 0.7% to $1,963.00.
Oil prices settled higher on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S. officials said China is in compliance with the first phase of the two nations’ trade deal.
Brent crude settled up 57 cents, or 1.3%, to $45.87 a barrel, and U.S. West Texas Intermediate crude was up 88 cents, or 2.1 %, to $42.41 a barrel.