Posted at 27 August 2020 / Categories Market Roundups
Market Roundup
•Fed Chair to discuss policy at 1300 GMT
•Swiss GDP (YoY) (Q2) -9.3%,-9.6% forecast,-1.3% previous
•Swiss GDP (QoQ) (Q2) -8.2%,-8.6% forecast, -2.6 previous
•French Jul Car Registration (MoM) 93.0%,142.8% previous
•French Industrial Investments (Q3) -11.0%,-7.0% previous
•French Aug Business Survey 93, 85 forecast, 82 previous
•Sweden Consumer Aug Confidence 84.4, 83.3 previous
•Sweden Aug Manufacturing Confidence 97.7, 95.7 previous
•Sweden Jul Household Lending Growth (YoY) 5.2%,5.1% previous
•Sweden Jul Trade Balance 2.90B, 4.90B previous
•EU Private Sector Loans (YoY) 3.0%,3.0% previous
•Italian June Industrial Sales (YoY) -16.40%,-25.90% previous
•Italian June Industrial New Orders (MoM) 23.4%,42.2% previous
•Italian June Industrial Sales (MoM) 13.40%,41.90% previous
• Italian June Industrial New Orders (YoY) -11.8%,-34.7% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Jobless Claims 4-Week Avg 1,175.75K previous
• 12:30 US Continuing Jobless Claims 14,450K forecast, 14,844K previous
• 12:30 US Initial Jobless Claims 1,000K forecast, 1,106K previous
• 12:30 US Corporate Profits (QoQ) (Q2) -11.0% previous
• 12:30 US GDP Price Index (QoQ) (Q2) -2.0% forecast,1.6% previous
• 12:30 US Core PCE Prices (Q2) -1.10% forecast, -1.10% previous
• 12:30 US PCE Prices (Q2) 1.3%,-1.9% previous
• 12:30 US GDP (QoQ) (Q2) -32.5% forecast,-5.0% previous
• 12:30 US GDP Sales (Q2) -29.3% previous
• 12:30 US Real Consumer Spending (Q2) -34.6% previous
•12:30 Canada Current Account (Q2) -12.2B forecast, -11.1B previous
• 13:00 Russia Central Bank reserves (USD) 590.2B previous
• 14:00 US Jul Pending Home Sales Index 116.1 previous
• 14:00 US Jul Pending Home Sales (MoM) 3.0% forecast ,16.6% previous
• 14:30 US Natural Gas Storage 47B forecast, 43B previous
• 15:00 US Aug KC Fed Manufacturing Index 7 previous
• 15:00 US Aug KC Fed Composite Index 3 previous
Looking Ahead - Economic events and other releases (GMT)
• 13:00 Jackson Hole Symposium
• 13:10 US Fed Chair Powell Speaks
•15:15 Canada BoC Gov Council Member Macklem Speaks
Currencies Recap
EUR/USD: The euro dipped against dollar on Thursday, ahead of a key speech by U.S. Federal Reserve Chair Jerome Powell that is expected to set out the central bank’s new strategy for meeting its price stability and maximum employment goals. Market attention was firmly fixed on Fed chief Powell, due to speak virtually at the Jackson Hole symposium at 9:10 a.m. EDT (1310 GMT).Powell is expected to discuss the results of the Fed’s framework review to explore how monetary policy should be adapted for a low interest rate environment. The euro changed hands at $1.1833 , near its highest level so far this week, though few market players expect a clear break from its range so far this week ahead of Powell’s speech. Immediate resistance can be seen at 1.1840 (38.2%fib), an upside break can trigger rise towards 1.1940 (23.6% fib).On the downside, immediate support is seen at 1.1744 (50% fib ), a break below could take the pair towards 1.1698 (Lower BB).
GBP/USD:The British currency hovered above the $1.32 mark against dollar ahead of the annual Jackson Hole central bankers’ conference starting later on Thursday, with traders on the lookout for policy hints that could move markets. Sterling looked to have brushed off fresh industry data showing UK car production recovered in July but was still down 21% on the year, and the fastest cut in service sector jobs on record in the three months to August.Traders are watching for any signs U.S. Federal Reserve Chairman Jerome Powell may tweak the central bank’s policy framework to help push up inflation, in his Jackson Hole speech later today. Such a move could allow rates to stay super-low for longer. Immediate resistance can be seen at 1.3259 (Higher BB), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3148 (9 DMA), a break below could take the pair towards 1.2983 (38.2%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Thursday before a speech from U.S. Federal Reserve Chair Jerome Powell. Investors are bracing for dovish remarks from Powell at the Kansas City Fed’s annual economic symposium. His speech is due to begin at 9:10 a.m. EDT (1310 GMT).Powell is expected to provide an update on the Fed’s plans to refit its monetary policy approach as persistently low inflation and interest rates numb the effects of stimulus measures aimed at cushioning damage wrought by the coronavirus pandemic. Immediate resistance can be seen at 0.9120 (Daily high), an upside break can trigger rise towards 0.9147 (38.2% fib).On the downside, immediate support is seen at 0.9078 (23.6% fib), a break below could take the pair towards 0.9022(Lower BB).
USD/JPY: The dollar edged higher against the Japanese yen on Thursday as investors looked for hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation. Powell is scheduled to address the Fed’s annual central bankers’ conference later in the day, usually held in Jackson Hole, Wyoming, but being conducted virtually this year because of the COVID-19 pandemic.Investors are betting the U.S. central bank will introduce a new policy framework to fight persistently low inflation as early as next month. Strong resistance can be seen at 106.16 (14 DMA), an upside break can trigger rise towards 106.19 (50% fib).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
A cautious mood prevailed in European equity markets on Thursday as investors looked ahead to the U.S. Federal Reserve Chairman Jerome Powell’s outlook on monetary policy.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.14 percent, Germany's Dax was down by 0.23 percent, France’s CAC was last down by 0.30 percent.
Commodities Recap
Gold fell on Thursday as investors reassessed their positions, booked profits after a more than 1% jump in the previous session and anticipated fresh stimulus announcements from U.S. Federal Reserve Chairman Jerome Powell.
Spot gold was down 0.7% at $1,940.77 per ounce by 1138 GMT, after rising 1.3% on Wednesday. U.S. gold futures were down 0.2% to $1,949.30 per ounce.
Oil prices were broadly stable on Thursday as a massive hurricane in the Gulf of Mexico made landfall in the heart of the U.S. oil industry, forcing oil rigs and refineries to shut down.
Brent crude futures for October, which expire on Friday, rose 6 cents, or, 0.1% to $45.70 a barrel by 0942 GMT. The more active November Brent contract was virtually flat at $46.17 per barrel.
U.S. West Texas Intermediate (WTI) crude futures fell 8 cents or 0.2% to $43.31 a barrel.