Posted at 28 August 2020 / Categories Market Roundups
Market Roundup
• US Jobless Claims 4-Week Avg 1,068.00K,1,175.75K previous
• US Continuing Jobless Claims 14,535K, 14,450K forecast, 14,844K previous
• US Initial Jobless Claims 1,006K, 1,000K forecast, 1,106K previous
• US Corporate Profits (QoQ) (Q2) -11.8%, -11.0% previous
• US GDP Price Index (QoQ) (Q2) -2.3%, -2.0% forecast,1.6% previous
• US Core PCE Prices (Q2) -1.00%, -1.10% forecast, -1.10% previous
• US PCE Prices (Q2) -1.8%,1.3%,-1.9% previous
• US GDP (QoQ) (Q2) -31.7%, -32.5% forecast,-5.0% previous
• US GDP Sales (Q2) -28.5%,-29.3% previous
• US Real Consumer Spending (Q2) -34.1%,-34.6% previous
• Canada Current Account (Q2) -8.6B, -12.2B forecast, -11.1B previous
• Russia Central Bank reserves (USD) 590.8B, 590.2B previous
• US Jul Pending Home Sales Index 122.1 , 116.1 previous
• US Jul Pending Home Sales (MoM) 5.9%, 3.0% forecast ,16.6% previous
• US Natural Gas Storage 45B,47B forecast, 43B previous
• US Aug KC Fed Manufacturing Index 14 , 7 previous
• US Aug KC Fed Composite Index 23, 3 previous
Looking Ahead - Economic Data (GMT)
• 04:00 Philippines Jul Budget Balance 1.8B previous
• 04:00 Malaysia Jul Imports (YoY) -5.5% forecast, -5.6% previous
• 04:00 Malaysia Jul Trade Balance 15.90B forecast, 20.90B previous
• 04:00 Malaysia Jul Exports (YoY) -1.2% forecast,8.8% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currencies Recap
EUR/USD: The euro declined against dollar on Thursday after the Federal Reserve’s aggressive new strategy to lift employment and increased tolerance for higher inflation pushed U.S. bond yields up. Following Powell’s comments, the dollar initially fell against the euro, but reversed as longer-term U.S. Treasury yields bounced back to their highest levels in months. The euro changed hands at $1.18155, after almost hitting last week’s low of $1.1754 overnight. 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 pound dipped against a broadly stronger dollar after Federal Reserve Chairman Jerome Powell unveiled a new strategy to lift U.S. employment and inflation at the Jackson Hole central bankers’ conference on Thursday. Sterling initially jumped 0.5% versus the dollar on Powell’s comments touching a more than eight month high of $1.3285 before slipping 0.3% as investors digested the Fed’s change in approach to monetary policy. In recent weeks, sterling has been buoyed by a broadly weakening dollar, as risk sentiment recovered and investors piled back into currencies perceived as riskier bets. The pound remains up more than 6% since the start of July. Immediate resistance can be seen at 1.3300 (23.6% fib), an upside break can trigger rise towards 1.3348 (Dec 18th 2019 high).On the downside, immediate support is seen at 1.3166 (5 DMA), a break below could take the pair towards 1.3101 (38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday as the U.S. currency recovered from early weakness following the U.S. Federal Reserve's approval of a new strategy revising its established practice of pre-emptively lifting interest rates to head off inflation. Stability in the price of oil, one of Canada's main exports, along with robust investor appetite for riskier assets, has helped support the Canadian dollar in recent sessions. The Canadian dollar was last trading at C$1.3126 to the greenback. Immediate resistance can be seen at 1.3156 ( 5 DMA), an upside break can trigger rise towards 1.3167 (9 DMA).On the downside, immediate support is seen at 1.3120 (Daily low), a break below could take the pair towards 1.3106 (23.6% fib).
USD/JPY: The dollar rose against the Japanese yen on Thursday after the Federal Reserve said it would roll out an aggressive new strategy that aims to boost employment and allow inflation to run a bit faster for longer than in the past. Fed Chair Jerome Powell laid out a policy that will seek to achieve inflation averaging 2% over time and offset below -2% periods with higher inflation for some time. The dollar rebounded after initially falling in choppy trade, retreating from early gains on Powell’s comments, which investors had widely expected. Strong resistance can be seen at 106.78 (23.6%fib), an upside break can trigger rise towards 107.02 (100 DMA).On the downside, immediate support is seen at 106.07 ( 5DMA ), a break below could take the pair towards 105.52(38.2% fib).
Equities Recap
European equity markets ended lower on Thursday with resource stocks weighing the most, while an aggressive growth strategy from the U.S. Federal Reserve was met with little fanfare locally.
UK's benchmark FTSE 100 closed down by 0.75 percent, Germany's Dax ended down by 0.71 percent, France’s CAC finished the day down by 0.64 percent.
Wall Street’s main indexes rose on Thursday as Federal Reserve Chair Jerome Powell rolled out the U.S. central bank’s aggressive new strategy to restore the United States to full employment and lift inflation back to healthier levels.
Dow Jones closed up by 0.57% percent, S&P 500 closed up by 0.17 % percent, Nasdaq settled down by 0.34% percent.
Treasuries Recap
Longer-term U.S. Treasury yields climbed to their highest levels in months on Thursday, steepening the yield curve, after Federal Reserve Chairman Jerome Powell announced a new policy framework promoting higher inflation to spur economic recovery and job creation.
The benchmark 10-year yield was last up 5.5 basis points at 0.7423%, its highest since June 19, while the yield on the 30-year bond was 9 basis points higher at 1.496%.
Commodities Recap
Gold slumped over 2% in volatile trading on Thursday as the U.S. dollar and Treasury yields rose after Federal Reserve Chair Jerome Powell shifted the central bank’s inflation target in a widely expected move.
Spot gold fell 1.5% to $1,925.19 per ounce by 11:42 a.m. EDT (1542 GMT). Prices had risen as much as 1.1% during Powell’s speech.U.S. gold futures were down 1.4% at $1,924.60 per ounce.
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Brent crude futures for October, which expire on Friday, fell 55 cents, or 1.2%, to settle at $45.09 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 35 cents or 0.8% to $43.04 a barrel.