Posted at 25 August 2020 / Categories Market Roundups
Market Roundup
•U.S. and China see progress on trade talks
•German GDP (QoQ) (Q2) -9.7%, -10.1% forecast, -2.2% previous
•German GDP (YoY) (Q2) -11.3%,-11.7% forecast, -1.9% previous
•German Aug Current Assessment 87.9, 87.0 forecast, 84.5 previous
• German Aug Ifo Business Climate Index 92.6, 92.2 forecast, 90.5 previous
• German Aug Business Expectations 97.5, 98.0 forecast, 97.0 previous
•UK Aug CBI Distributive Trades Survey -6, 8 forecast, 4 previous
•Brazil Jul Current Account (USD) 1.63B, 2.24B previous
•Brazil Jul Foreign direct investment (USD) 2.69B, 2.50B, 4.75B previous
•US Redbook (YoY) 4.1%, -2.8% previous
•US Redbook (MoM) 0.6%,2.8% previous
Looking Ahead – Economic Data (GMT)
•13:00 US June House Price Index 287.3 previous
•13:00 US June House Price Index (MoM ) -0.3% previous
•13:00 US June House Price Index (YoY) 4.9% previous
•13:00 Belgium Aug NBB Business Climate -11.5 forecsst, -13.9 previous
•13:00 US S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.8% forecsst,3.7% previous
•13:00 June S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.4% previous
•14:00 US Aug CB Consumer Confidence 93.0 forecast, 92.6 previous
•14:00 US Aug Richmond Services Index -14 previous
•14:00 US Aug Richmond Manufacturing Index 10 previous
•14:00 US Aug Richmond Manufacturing Shipments 23 previous
•14:00 US Jul New Home Sales 785K forecast, 776K previous
•14:00 US Jul New Home Sales (MoM) 1.3% forecast,13.8% previous
Looking Ahead - Events, Other Releases (GMT)
•17:30 BoC Gov Council Member Schembri Speaks
•19:25 US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as better-than-expected German economic data boosted euro. German business morale improved more than expected in August as both manufacturing and services picked up steam, a survey showed, boosting hopes that Europe’s largest economy is set for a strong recovery following the massive coronavirus shock. The euro was last up 0.4% at $1.1831 , having risen as high as $1.1842 earlier. Immediate resistance can be seen at 1.1844(38.2% fib), an upside break can trigger rise towards 1.1949(23.6%fib).On the downside, immediate support is seen at 1.1752 (50% fib), a break below could take the pair towards 1.1729 (30DMA).
GBP/USD: Sterling rose on Tuesday as the dollar slipped and investors shrugged off an unexpected drop in Britain’s monthly retail sales data.The dollar fell after investors returned to riskier currencies as a successful phone call between top trade officials in the United States and China boosted positive sentiment. Sterling was last up 0.4% at $1.3122 versus the greenback . It was little changed at 90.195 pence versus the euro. Immediate resistance can be seen at 1.3154(Daily high), an upside break can trigger rise towards 1.3213 (23.6%fib).On the downside, immediate support is seen at 1.2983 (38.2% fib), a break below could take the pair towards 1.2950 (50%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Tuesday as market participants awaited the U.S. Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium - his first public appearance since the central bank’s policy meeting in late July.Investors have been awaiting details on possible changes to how the Fed targets inflation. In the current environment, that could mean the Fed sticks with aggressive stimulus longer than under its previous rubric.. Immediate resistance can be seen at 0.9148 (38.2% fib), an upside break can trigger rise towards 0.9199 (Higher BB).On the downside, immediate support is seen at 0.9080 (23.6% fib), a break below could take the pair towards 0.8963 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as investors seemed to temper their bearish bets against the greenback ahead of a Thursday speech from U.S. Federal Reserve Chair Jerome Powell. A small overnight rise in yields also supported the dollar and against a basket of currencies it held the line at 93.282, about 1.3% higher than a two-year trough it hit a week ago. Strong resistance can be seen at 106.59(50% fib), an upside break can trigger rise towards 107.31 (Higher BB).On the downside, immediate support is seen at 105.81 (Daily low), a break below could take the pair towards 105.52 (38.2% fib).
Equities Recap
Renewed optimism over a U.S.-China trade deal and a smaller-than-expected decline in German economic output fuelled gains in European stocks on Tuesday, with Frankfurt shares hitting a one-month high.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading up at 0.09 percent, Germany's Dax was up by 0.76 percent, France’s CAC finished was up by 1.14 percent.
Commodities Recap
Gold prices fell on Tuesday as hopes surrounding a potential COVID-19 vaccine and positive signals on the U.S.-China trade front buoyed risk sentiment and offset support for the metal from a weaker dollar.
Spot gold fell 0.3% to $1,926.06 per ounce by 1144 GMT. U.S. gold futures were down 0.2% to $1,936.10 per ounce.
Crude oil prices rose on Tuesday, supported by production cuts in the U.S. Gulf Coast as Tropical Storm Laura was forecast to become a major hurricane, while rising coronavirus cases in Asia and Europe capped gains.
Brent crude oil futures added 37 cents, or 0.82%, to $45.50 a barrel by 1048 GMT and U.S. West Texas Intermediate crude rose 15 cents, or 0.35%, to $42.77 a barrel.