Market Roundup
•Weekly jobless claims fall below 1 million
•Palladium hits highest level since March 31
•U.S.-China trade tensions in focus
•US Initial Jobless Claims 881K, 950K forecast, 1,006K previous
•US Jobless Claims 4-Week Avg 991.75K ,1,068.00K previous
•US Continuing Jobless Claims 13,254K, 14,000K, 14,535K previous
•US Exports 168.10B ,158.25B previous
•US Imports 231.70B, 208.95B previous
•US Nonfarm Productivity (QoQ) (Q2) 10.1% ,7.5% forecast, 7.3% previous
•Canada Jul Exports 45.43B, 38.80B forecast, 39.71B previous
•US Jul Trade Balance -63.60B ,-58.00B, -50.70B previous
•Canada Imports 47.88B,41.30B forecast, 42.90B previous
•Canada Trade Balance -2.45B, -2.50B forecast, -3.19B previous
•US Unit Labor Costs (QoQ) (Q2) 9.0% ,12.1% forecast, 12.2% previous
•Russia Central Bank reserves (USD) 591.8B, 590.8B previous
•Brazil Aug Markit Services PMI 49.5, 42.5 previous
•Brazil Aug Markit Composite PMI 53.9, 47.3 forecast, 47.3 previous
•US Aug Markit Composite PMI 54.6, 54.7 forecast, 50.3 previous
•US Aug Services PMI 55.0, 54.8 forecast, 50.0 previous
•US Aug ISM Non-Manufacturing PMI 56.9, 57.0 forecast, 58.1 previous
•US Aug ISM Non-Manufacturing Business Activity 62.4,65.0 forecast, 67.2 previous
•US ISM Non-Manufacturing Employment 47.9, 42.1 previous
•US Aug ISM Non-Manufacturing Prices 64.2, 57.6 previous
•US Aug ISM Non-Manufacturing New Orders 56.8, 67.7 previous
•US Natural Gas Storage 35B, 34B, 45B previous
Looking Ahead - Economic Data (GMT)
• 23:01 UK Aug BRC Retail Sales Monitor (YoY)
•01:30 Australia Jul Retail Sales (MoM) 3.3% forecast, 2.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro declined against dollar on Thursday as investors were concerned that the European Central Bank was worried about its rise. The euro fell about 0.4% to a one-week low of $1.1797 in Asia after the Financial Times reported that several members of the ECB’s governing council were concerned that the euro’s rise could weigh on European growth. That followed remarks on Tuesday from ECB’s chief economist Philip Lane, who said the exchange “does matter” for monetary policy, which had begun the euro’s descent from above $1.20. Immediate resistance can be seen at 1.1871 (38.2% fib), an upside break can trigger rise towards 1.1942 (Higher BB).On the downside, immediate support is seen at 1.1838 (21DMA), a break below could take the pair towards 1.1784 (50%fib ).
GBP/USD: The pound fell on Thursday, extending its losses on a combination of dollar strength and worries about Brexit negotiations. The Bank of England’s deputy governor, Dave Ramsden, said on Wednesday that the level of British economic output would permanently be about 1.5 percentage points lower than it would be had it not been for the pandemic. The European Union’s chief Brexit negotiator, meanwhile, said that Britain had not changed its position on key sticking points in Brexit trade talks and that he was worried and disappointed. At 1230 GMT, sterling was last down against greenback at $1.3269.Immediate resistance can be seen at 1.3353 (Sep 3rd high), an upside break can trigger rise towards 1.3464 (23.6% fib).On the downside, immediate support is seen at 1.3252 (38.2% fib), a break below could take the pair towards 1.3167 (21DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as Wall Street's main indexes tumbled and data showed a widening in Canada's trade deficit, with the loonie posting its biggest decline in more than two months. The loonie was trading 0.7% lower at 1.3130 to the greenback, or 76.16 U.S. cents, which was its largest sell-off since June 24. The currency, which notched a near eight-month high of 1.2990 on Tuesday, traded in a range of 1.3040 to 1.3161.Immediate resistance can be seen at 1.3184(20 DMA), an upside break can trigger rise towards 1.3216 (50% fib).On the downside, immediate support is seen at 1.3114 (38.2% fib), a break below could take the pair towards 1.2993 (23.6%fib).
USD/JPY: The dollar rose against the Japanese yen on Thursday as growing worries about Sino-U.S. relations increased risk appitite. Fears of a further escalation in tensions overshadowed positive data showing China’s service sector activity grew for a fourth straight month in August to stay above the 50-mark. The dollar rose against a basket of currencies to be up 0.3%. It was higher on the safe haven Japanese yen at 106.15. Strong resistance can be seen at 106.56 (Daily high), an upside break can trigger rise towards 106.83 (50%fib).On the downside, immediate support is seen at 105.90(5 DMA), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares edged higher on Thursday, with a pre-holiday lull making for a quiet trading session aside from a handful of corporate updates.
UK's benchmark FTSE 100 closed up by 1.52 percent, Germany's Dax ended down by 1.40 percent, France’s CAC finished the day up by 0.44 percent.
Wall Street’s main indexes tumbled on Thursday, heading for their worst day since June as investors dumped high-flying technology-focused stocks, while economic data highlighted concerns about a long and difficult recovery.
Dow Jones closed down by 2.78 percent, S&P 500 ended up by 3.51 percent, Nasdaq finished the up by 4.96 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as stocks plunged and the market awaited August employment data due out on Friday for the latest indication of how the coronavirus-hit economy is faring.
The benchmark 10-year yield, which dropped to as low as 0.604% earlier in the session, was last down 2.4 basis points at 0.6266%.
Commodities Recap
Gold prices fell over 1% on Thursday, as positive U.S. economic data elevated hopes for a quick recovery and dented allure of the safe-haven metal.
Spot gold fell 0.6% to $1,930.24 per ounce by 2:18 p.m. ET (1818 GMT), after falling earlier to a one-week low of $1,921.61.
Oil prices settled lower on Thursday, at one point touching their lowest since early August as U.S. unemployment data fed fears of a slow recovery for the economy and fuel demand a day after weak U.S. gasoline demand data.
Brent crude settled down 36 cents, or 0.8%, to $44.07 a barrel. U.S. West Texas Intermediate (WTI) crude futures were down 14 cents, or 0.3%, at $41.37 a barrel.
