Posted at 22 August 2020 / Categories Market Roundups
Market Roundup
•U.S. business activity rises to early 2019 levels
•U.S. home sales rise at record pace for 2nd month in row
•Canada June Retail Sales (MoM) 23.7%, 24.5% forecast ,18.7% previous
•Canada Jul New Housing Price Index (MoM) 0.4%, 0.1% forecast , 0.1% previous
•Canada Jul Core Retail Sales (MoM) 15.7%, 15.0% forecast, 10.6% previous
•US Manufacturing PMI 51.9 forecast, 50.9 previous
•US Aug Services PMI 51.0m, 50.0 previous
•US Markit Composite PMI 50.3 previous
•EU Aug Consumer Confidence -15.0 forecast, -15.0 previous
•US Jul Existing Home Sales (MoM) 14.7% forecast,20.7% previous
•US Jul Existing Home Sales 5.38M forecast, 4.72M previous
Looking Ahead – Economic Data (GMT)
• No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Recap
EUR/USD: The euro declined against dollar on Friday as an August batch of business surveys pointed to a stuttering economic recovery, while the U.S. dollar climbed, notching its first weekly rise since mid-June. Flash euro zone manufacturing and services purchasing managers index (PMI) numbers for August were worse than expected. IHS Markit’s flash Composite Purchasing Managers’ Index, seen as a good gauge of economic health, sank to 51.6 from July’s final reading of 54.9.The single currency, which had been falling before the results were released, extended losses and dropped as much as 0.6% to $1.1759, a one-week low. Immediate resistance can be seen at 1.1809 (38.2% fib), an upside break can trigger rise towards 1.1925 (23.6% fib).On the downside, immediate support is seen at 1.1759 (Daily low), a break below could take the pair towards 1.1705 (50 %fib).
GBP/USD The pound declined against dollar on Friday as a mix of Brexit worries and better-than-expected British economic data injected some volatility in the currency. Year-on-year sales rose instead of falling as in the previous month while economists polled had predicted no growth. Month-on-month numbers also rose higher than expectations, though not as much as June.Earlier in the day the pound rose against the greenback after UK retail sales numbers for July came in much higher than expected. Immediate resistance can be seen at 1.3195 (23.6%fib), an upside break can trigger rise towards 1.3246 (Higher BB).On the downside, immediate support is seen at 1.3100 (21DMA), a break below could take the pair towards 1.2990 (38.2%fib).
USD/CAD: The Canadian dollar was little changed against a broadly stronger greenback on Friday as investors rewarded the currency for ongoing signs of economic recovery from the coronavirus crisis, with the loonie advancing for the third straight week. Canadian retail sales rose by a record 23.7% in June, rising above February levels for the first time since shutdowns tied to the virus, Statistics Canada said. Immediate resistance can be seen at 1.3185 (5DMA), an upside break can trigger rise towards 1.3221 (9 DMA).On the downside, immediate support is seen at 1.3156 (23.6% fib), a break below could take the pair towards 1.3099 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as upbeat readings on U.S. business activity and home sales helped push the dollar higher on Friday. Data firm IHS Markit’s purchasing managers’ survey released on Friday showed U.S. business activity in August snapped back to the highest since early 2019. The rise came even though new COVID-19 cases remain stubbornly high across the United States. The flash U.S. Composite PMI Index rose for August to the highest level since February 2019. The flash - or preliminary - indicator for the manufacturing sector stood at its highest since January 2019 and for the services sector it was the highest since March 2019.Strong resistance can be seen at 106.13 (11DMA), an upside break can trigger rise towards 106.79 (50%fib).On the downside, immediate support is seen at 105.52 (38.2%fib ), a break below could take the pair towards 104.58(Lower BB).
Equities Recap
European shares were flat on Friday as downbeat economic data that pointed to a stalling of the euro zone recovery hit regional stock markets on Friday.
UK's benchmark FTSE 100 closed up by 0.16 percent, Germany's Dax ended up by 1.16 percent, France’s CAC finished the day down by 0.30 percent.
Wall Street’s main indexes inched higher on Friday, with the tech-heavy Nasdaq on track for another record close, as the latest data pointed to some pockets of strength in the U.S. economy.
Dow Jones closed up by 0.69% percent, S&P 500 closed up by 0.34% percent, Nasdaq settled down by 0.42% percent.
Treasuries Recap
U.S. Treasury yields were mixed on Friday as the market drifted in light trading and looked ahead to next week's Federal Reserve Jackson Hole virtual economic policy conference and $148 billion of note sales.
The benchmark 10-year yield was last down less than a basis point at 0.6412%.
Commodities Recap
Gold fell as much as 1.6% on Friday as the dollar bounced back, denting bullion's appeal and setting it on track for a second straight weekly decline.
Spot gold fell 0.3% to $1,937.81 per ounce by 1322 MT, while U.S. gold futures dropped 0.4% to $1,937.80 per ounce.
Oil prices lost about 1% on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns and on worries about rising crude supply.
Brent crude futures settled at $44.35 a barrel, down 55 cents, 1.2%. U.S. West Texas Intermediate (WTI) crude futures settled at $42.34 a barrel, falling 86 cents, or 1.1%.Brent fell about 1% for the week, while WTI saw a weekly rise of nearly 1%.