News

Europe Roundup: Sterling edges lower as dollar jumps after Fed minutes , European shares fall, Gold crawls higher, Oil falls on caution over demand recovery-August 20th,2020

Posted at 20 August 2020 / Categories Market Roundups


Market Roundup

•German Jul PPI (MoM) 0.2% , 0.1%,0.0% previous         

•German Jul PPI (YoY)  -1.7%,-1.8% forecast, -1.8% previous      

•Swiss Jul Trade Balance  3.379B, 3.216B previous

•Greek Jul Current Account (YoY)  -1.421B, -0.914B previous

•EU June Construction Output (MoM)  4.04%,27.90% previous

•US Jobless Claims 4-Week Avg1,175.75K,  1,252.75K previous

•US Continuing Jobless Claims 14,844K, 15,000K  forecast 15,486K previous         

•US Initial Jobless Claims 1,106K, 925K forecast , 963K previous

•Canada ADP Nonfarm Employment Change 1,149.8K,1,042.9K previous

•US Aug Philadelphia Fed Manufacturing Index 17.2,  21.0, 24.1 previous

•US Aug Philly Fed Employment  9.0, 20.1 previous

•US Philly Fed CAPEX Index 23.00, 26.60 previous

• US Aug Philly Fed New Orders 19.0, 23.0 previous

•US Aug Philly Fed Business Conditions 38.8, 36.0 previous

•US Aug Philly Fed Prices Paid 15.30.  15.70 previous

Looking Ahead – Economic Data (GMT)

 

•13:00 Russia Central Bank reserves (USD)  600.7B previous

•13:00 Russia Jul Unemployment Rate  6.1% forecast ,6.2% previous

•13:00 Russia Jul Retail Sales (YoY)  -4.8% forecast,-7.7% previous

•13:00 Russian Jun Real Wage Growth (YoY)  0.1% forecast,1.0% previous

•14:30 US Jul Leading Index (MoM)  1.1%forecast,2.0% previous

•14:30 US Natural Gas Storage 43B forecast, 58B previous

•15:00 Russia GDP Monthly (YoY) -6.4% previous

•15:30 US 8-Week Bill Auction 0.100% previous

•15:30 US 4-Week Bill Auction 0.080% previous

Looking Ahead - Events, Other Releases (GMT)

•17:00 US FOMC Member Daly Speaks

Fxbeat

EUR/USD: The euro edged higher against greenback on Thursday after the U.S. Federal Reserve’s latest meeting minutes highlighted doubts about the recovery of the world’s largest economy. The Fed’s minutes from its July meeting, which were released on Wednesday, highlighted doubts about the U.S. economic recovery, showing that the swift labour market rebound seen in May and June had likely slowed. Immediate resistance can be seen at 1.1872 (Daily high), an upside break can trigger rise towards 1.1925 (23.6% fib).On the downside, immediate support is seen at 1.1807 (38.2% fib), a break below could take the pair towards 1.1778 (21DMA).

GBP/USD: Sterling rose against dollar on Thursday as UK government support to shield the economy from COVID-19 pandemic boosted sterling. Britain on Tuesday extended its job retention scheme, in which the government pays 80% of furloughed workers’ wages, by another four months until the end of October. Sterling was last trading up 0.65% at $1.2325 and 88.29 pence versus the euro. Immediate resistance can be seen at 1.2273 (23.6% fib), an upside break can trigger rise towards 1.2375 (9 DMA).On the downside, immediate support is seen at 1.3037 (21 DMA), a break below could take the pair towards 1.2990(38.2%bfib).

USD/CHF: The dollar gained against the Swiss franc on Thursday after minutes from last month’s U.S. Federal Reserve meeting gave few clues about whether an even more dovish shift in its policy framework is possible in the autumn, disappointing some dollar bears.A heavily shorted greenback put on its biggest one-day surge since March after the release, hitting 93.159 against a basket of currencies, about 1% above Tuesday’s two-year trough. The move wiped out earlier gains made by other majors. Immediate resistance can be seen at 0.9123 (38.2% fib), an upside break can trigger rise towards 0.9178 (50% fib).On the downside, immediate support is seen at 0.9086  (5 DMA), a break below could take the pair towards 0.9050 (23.6%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday after less dovish than expected minutes from last month’s U.S. Federal Reserve policy meeting prompted investors to buy dollar. The dollar index, which tracks the greenback’s value against a basket of currencies, had climbed 1% above the two-year low at 92.12 hit on Tuesday and cemented gains at 93.01 in London trading. Strong resistance can be seen at 105.78 (9 DMA), an upside break can trigger rise towards 106.78 (50% Fib).On the downside, immediate support is seen at 105.50 (38.2% fib), a break below could take the pair towards 104.70 (Lower BB).

Equities Recap

European stocks were hit by a wave of selling in global equity markets on Thursday after the U.S. Federal Reserve signalled a long and difficult path of recovery for the world’s largest economy.

At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 1.48 percent, Germany's Dax was down by 1.31 percent, France’s CAC finished was down by 1.39 percent.

Commodities Recap

Gold inched up on Thursday, regaining ground from a more than 3% slide the previous session after the U.S. Federal Reserve minutes highlighted the uncertainties surrounding economic recovery from a pandemic-induced slump and dented risk appetite.

Spot gold rose 0.1% to $1,931.76 per ounce by 1114 GMT. U.S. gold futures fell 1.6% to $1,938.50.

Oil prices fell on Thursday on demand concerns driven by cautious views from OPEC+ producers and the U.S. Federal Reserve regarding economic recovery from the coronavirus pandemic.

Brent crude was down 46 cents, or 1%, at $44.91 a barrel at 1159 GMT, and West Texas Intermediate (WTI) U.S. oil fell 43 cents, or 1%, to $42.50 a barrel.


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