Market Roundup
• US Real Consumer Spending (Q1) -6.8%,-7.6% previous
• US GDP (QoQ) (Q1) -5.0%,-4.8% forecast 2.1% previous
• US GDP Sales (Q1) -3.7%,-4.3% previous
• US April Core Durable Goods Orders (MoM) -7.4%,-14.0% forecast, -0.2% previous
• US April Durables Excluding Defense (MoM) -16.2%, -16.5% previous
• US Initial Jobless Claims 2,123K, 2,100K forecast, 2,438K previous
• US Continuing Jobless Claims 21,052K, 25,750K forecast, 25,073K previous
• US Jobless Claims 4-Week Avg 2,608.00K, 3,042.00K previous
• US April Pending Home Sales Index 69.0, 88.2 previous
• US April Pending Home Sales (MoM) -21.8%, -15.0%,-20.8% previous
• US Natural Gas Storage 109B,107B, 81B previous
• US May KC Fed Composite Index -19,-30 previous
• US KC Fed Manufacturing Index -25, -62 previous
• US Crude Oil Inventories 7.928M,-1.944M, -4.983M previous
• US Cushing Crude Oil Inventories-3.395M, -4.261 M forecasts, -5.587M previous
• US Gasoline Inventorie-0.724M,s 0.100M forecast, 2.830M previous
Looking Ahead Economic Data
• 23:01 UK May GfK Consumer Confidence -34, -34 previous
• 23:01 UK BRC Shop Price Index (YoY) -1.7% previous
• 23:30 Japan May CPI Tokyo Ex Food and Energy (MoM) 0.1% previous
• 23:30 Japan April Unemployment Rate 2.7% forecast, 2.5%, previous
• 23:30 Japan May Tokyo Core CPI (YoY) -0.2%,-0.1% previous
• 23:30 Japan April Jobs/applications ratio 1.33 forecast, 1.39 previous
• 23:30 Japan April Retail Sales (YoY) -11.5%,-4.6% previous
• 01:30 Australia April Private Sector Credit (MoM) 1.0% previous
• 01:30 Australia Housing Credit April 0.3% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro strengthened against dollar on Thursday as the common currency continued to bask in the glow of the recently announced 750 billion-euro ($828.90 billion)coronavirus recovery fund amid improved risk appetite, leading investors to favor riskier assets. The EU executive unveiled a plan on Wednesday to support economies hammered by the pandemic, hoping to end months of squabbling over how to fund a recovery. The euro was 0.57% higher against the greenback at 1.1066, its third straight session of gains. The single currency has gained 1.6% over the past three sessions. Immediate resistance can be seen at 1.1064 (50% fib), an upside break can trigger rise towards 1.1167 (61.8% fib).On the downside, immediate support is seen at 1.0958(38.2% fib), a break below could take the pair towards 1.0877(21 DMA).
GBP/USD: The pound rose around half a percent against a weaker dollar on Thursday as Brexit-related risks and speculation about negative interest rates continue to limit the pound’s gains. The safe-haven dollar fell to a near two-month low as global risk appetite was boosted by investors’ optimism about economies re-opening. A 750-billion-euro stimulus plan in Europe lifted regional stock indices and the euro. The pound gained as much as 0.6% against the dollar, reaching $1.2335 at 2100 GMT. It was last at $1.2314, up around 0.4%. Immediate resistance can be seen at 1.2358 (50 % fib), an upside break can trigger rise towards 1.2400 (Psychological level).On the downside, immediate support is seen at 1.2230 (9 DMA), a break below could take the pair towards 1.2104 (38.2 %fib).
USD/CAD: The Canadian dollar was the only G10 currency to lose ground against the greenback on Thursday as data showed a widening in Canada's current account deficit and ahead of data that was expected to show a slump in Canada's economy. The price of oil, one of Canada's major exports, erased earlier losses on signs U.S. gasoline demand is rising. U.S.crude oil futures settled 2.7% higher at $33.71 a barrel. The loonie was trading 0.2% lower at 1.3779 to the greenback, or 72.57 U.S. cents. Still, the currency has rebounded more than 6% since hitting a four-year low in March. Immediate resistance can be seen at 1.3770 (50% fib), an upside break can trigger rise towards 1.3870 (9 DMA).On the downside, immediate support is seen at 1.3733(38.2%fib), a break below could take the pair towards 1.3700 (Psychological level).
USD/JPY: The dollar edged lower against the Japanese yen on Thursday as worries about escalating U.S.-China trade tensions increased demand for Japanese yen. China's parliament approved a decision on Thursday to go forward with national security legislation for Hong Kong that democracy activists in the city and Western countries fear could erode its freedoms and jeopardise its role as a global financial hub. Investors weighed the situation against the potential for an economic recovery, given that Sino-U.S. tensions could spill over into a renewed trade war and further unsettle global growth. Strong resistance can be seen at 107.90 (38.2% fib), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.47 (11 DMA), a break below could take the pair towards 106.59 (50% Fib).
Equities Recap
European shares rose for a fourth straight session on Thursday, as optimism over businesses returning to work and stimulus for the battered euro zone economy outweighed rising U.S.-China tensions.
UK's benchmark FTSE 100 closed up by 1.21 percent, Germany's Dax ended up by 1.06 percent, France’s CAC finished the day up by 1.76 percent.
Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.
Dow Jones closed down by 0.58 percent, S&P 500 closed down by 0.21 percent, Nasdaq settled down by 0.46 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday as stocks gained, reducing demand for safe haven bonds, and after the Treasury sold a record large amount of seven-year notes to slightly soft demand.
Benchmark 10-year notes rose three basis points to 0.703%.
Commodities Recap
Gold rebounded on Thursday as deteriorating U.S.-China relations over Beijing’s move to impose a national security law in Hong Kong fanned concerns over the pace of economic recovery and drove investors towards the safe-haven metal.
Spot gold was up 0.7% at $1,720.25 per ounce by 1206 GMT, recovering from a two-week low of $1,693.22 the previous session.U.S. gold futures rose 0.6% to $1,737.10.
Oil futures rose about 2% on Thursday as a steady improvement in U.S. refining activity offset a surprise build in crude and diesel inventories and on worries that China’s new Hong Kong security law could result in trade sanctions.
Brent for July rose 55 cents, or 1.6%, to settle at $35.29 a barrel on its second to last day as the front-month. U.S. West Texas Intermediate (WTI) crude CLc1 rose 90 cents, or 2.7%, to settle at $33.71.
