Market Roundup
• Canada May Core CPI (MoM) -0.1%, -0.4% previous
• Canada May Core CPI (YoY) 0.7%, 1.2% previous
• US May Housing Starts (MoM) 4.3%, -30.2% previous
• Canada May CPI (YoY) -0.4%,-0.1%,-0.2% previous
• US May Building Permits 1.228M forecast, 1.066M previous
• US Building Permits (MoM) -21.4% previous
• US May Housing Starts 0.974M, 1.095M, 0.891M previous
• Canada May CPI (MoM) 0.3% ,0.7% forecast, -0.7% previous
• Canada Common CPI (YoY) 1.4%, 1.6% previous
• Canada Median CPI (YoY) 1.9%, 2.0% previous
• Canada Trimmed CPI (YoY) 1.7%,1.8% previous
• Russia GDP Quarterly (YoY) (Q4) 1.6%,1.6%,2.1% previous
• US Crude Oil Inventories 1.215M,-0.152M, 5.720M previous
• New Zealand GDP (QoQ) (Q1) -1.6%,-1.0% forecast, 0.5% previous
Looking Ahead - Events, Other Releases (GMT)
• 23:45 Japan Foreign Bonds Buying 1,065.5B previous
• 23:45 Japan Foreign Investments in Japanese Stocks 268.7B previous
• 01:30 Australia May Full Employment Change -220.5K previous
• 01:30 Australia May Unemployment Rate 7.0% forecast, 6.2% previous
• 01:30 Australia May Employment Change -125.0K forecast, -594.3K previous
• 01:30 Australia May Participation Rate 63.7% forecast, 63.5% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant data
Currency Summaries
EUR/USD: The euro declined on Wednesday as optimism on economic and vaccine hopes faded, while fresh coronavirus outbreaks and rising geopolitical tensions in Asia boosted demand for the dollar. Optimism over a quick economic recovery has been tempered by more global cases of the coronavirus, including an outbreak in Beijing and a rising tide of infections in U.S. states that are reopening their economies. Immediate resistance can be seen at 1.1291 (23.6% fib), an upside break can trigger rise towards 1.1360 (June 16th high).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1164 (38.2% fib).
GBP/USD: Sterling weakened slightly on Wednesday after data showed inflation in Britain fell last month to its lowest level since June 2016 as the coronavirus pandemic sucked demand from the global economy and caused oil prices to tumble. Low inflation could give the Bank of England room to ramp up its stimulus programme when its policymakers meet on Thursday. The central bank is expected to announce an increase of at least 100 billion pounds ($126 billion) in its bond-buying firepower. Sterling was last trading down 0.3% at $1.2541 against a broadly stronger U.S. dollar. Immediate resistance can be seen at 1.2634 (300 DMA),an upside break can trigger rise towards 1.2775(23.6% fib).On the downside, immediate support is seen at 1.2533 (38.2% fib), a break below could take the pair towards 1.2467 (21 DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices fell and as domestic data showing a surprise annual decline in the consumer price index supported expectations for continued low interest rates. Canada's annual inflation rate fell by 0.4% in May, negative for the second month in row, as the COVID-19 pandemic pushed gasoline prices lower year-over-year. Analysts had forecast a flat rate in May. The Canadian dollar was trading 0.2% lower at 1.3573 to the greenback. Immediate resistance can be seen at 1.3629 (21 DMA), an upside break can trigger rise towards 1.3681(38.2%fib).On the downside, immediate support is seen at 1.3544 (23.6%fib), a break below could take the pair towards 1.3475 (200 DMA).
USD/JPY: The dollar declined against the Japanese yen Wednesday as fresh coronavirus outbreaks and rising geopolitical tensions in Asia boosted demand for safe haven assets. Rising tensions between North Korea and South Korea spurred demand for safe-havens, as did clashes between Indian and Chinese troops at a disputed border site. Strong resistance can be seen at 107.15(5 DMA), an upside break can trigger rise towards 107.67 (11 DMA).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares rose for a second day on Wednesday as expectations of more U.S. stimulus and hopes the global economy can bounce back from an appalling April offset fears of further lockdowns after a new COVID-19 outbreak in China.
UK's benchmark FTSE 100 closed up by 0.17 percent, Germany's Dax ended up by 0.54 percent, France’s CAC finished the day up by 0.88 percent.
Wall Street gained ground on Wednesday as signs of economic recovery helped investors look past spiking pandemic data and the potential of a new round of economic lockdowns.
Dow Jones closed down by 0.65 percent, S&P 500 was closed lower by 0.36 percent, Nasdaq ended up by 0.15 percent.
Treasuries Recap
U.S. Treasury yields edged lower on Wednesday as new outbreaks of the novel coronavirus andrising geopolitical tensions in Asia boosted demand for the safe haven debt.
Benchmark 10-year yields have fallen from 11-week highs reached on June 5 when data showed that employers unexpectedly added jobs in May.
Commodities Recap
Gold eased on Wednesday with the metal facing competition from the dollar as a hedge against concerns over a second coronavirus wave, but bullion’s losses were limited by expectations the U.S. Federal Reserve will maintain low interest rates for the near-term future.
Spot gold was down 0.2% at $1,723.71 per ounce by 11:22 a.m. ET (1522 GMT).U.S. gold futures fell 0.3% to $1,731.30 per ounce.
Oil prices settled lower on Wednesday on fuel demand worries due to an uptick in coronavirus cases, with emerging hotspots in China and the United States, and as U.S. crude stocks grew again, taking commercial inventories to another all-time high.
Brent crude settled down 25 cents, or 0.6 %, at $40.71 a barrel. U.S. West Texas Intermediate (WTI) fell 42 cents, or 1.1%, to $37.96 a barrel.
