Market Roundup
• US Continuing Jobless Claims-1,684K, 1,690K forecast, 1,699K previous
• US Initial Jobless Claims 209K, 215K forecast 217K previous
• US Jobless Claims 4-Week Avg 212.25K, 212.00K previous
• Canada Jun New Housing Price Index (MoM) -0.1%,0.1% forecast, 0.1% previous
• Russia Central Bank reserves 516.8B, 519.9B previous
• US Jun Wholesale Inventories (MoM) 0.0%,0.2% forecast, 0.2% previous
Looking Ahead - Economic Data (GMT)
• 22:45 New Zealand Jun External Migration & Visitors 3.00% forecast,-1.20% previous
• 22:45 New Zealand June Permanent/Long-Term Migration 4,240 previous
• 23:50 Japan GDP (YoY) (Q2) 0.4% forecast, 2.2% previous
• 23:50 Japan GDP (QoQ) (Q2), 0.1% forecast, 0.6% previous
• 23:50 Japan GDP Capital Expenditure (QoQ) (Q2) 0.7% forecast, 0.3% previous
• 01:30 China Jul CPI (YoY) 2.7% forecast, 2.7% previous
• 01:30 China Jul CPI (MoM) 0.2% forecast, -0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 23:30 Australia RBA Governor Lowe Speaks
• 01:30 Australia RBA Monetary Policy Statement
Currency Summaries
EUR/USD: The euro edged lower against the U.S. dollar on Thursday, after the Chinese central bank fixed the yuan at a stronger level than expected, boosting risk appetite. The People’s Bank of China set the midpoint rate at 7.0039. The fixing was still the weakest in more than a decade. The move came in response to U.S. President Donald Trump’s announcement last week that he would impose more tariffs on Chinese goods. Washington labelled Beijing a currency manipulator on Monday. The euro was up 0.17 percent at $1.1182 . An index that tracks the dollar versus a basket of six major currencies was up 0.02 at 97.63 . Immediate resistance can be seen at 1.1235 (Daily High), an upside break can trigger rise towards 1.1320 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.1177 (5 DMA), a break below could take the pair towards 1.1148 (11 DMA).
GBP/USD: Sterling declined against dollar on Thursday, as the chances Britain and the European Union part ways without a withdrawal deal weighed on sterling. Boris Johnson who took over as prime minister last month, has repeatedly said he will take Britain out of the EU on Oct. 31 with or without a deal. Britain was originally due to leave the EU at the end of March but the departure date was extended. Sterling hit 0.3 percent lower to $1.2083, its weakest since Aug 1st. A stronger dollar also weighed on the British currency. Immediate resistance can be seen at 1.2199 (11 DMA), an upside break can trigger rise towards 1.2332 (21 DMA).On the downside, immediate support is seen at 1.2096 (Lower Bollinger Band), a break below could take the pair towards 1.2000 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, as higher oil prices supported loonie, offsetting data showing weaker than expected New Housing Price Index data .Oil prices jumped more than $1 a barrel on Thursday amid a weaker dollar, recovering ground after concerns that a global economic slowdown would hurt crude demand sparked losses of over 4% in the previous session.The Canadian dollar was last trading 0.61 percent higher at 1.3224 to the greenback . Immediate resistance can be seen at 1.3348 (Daily High), an upside break can trigger rise towards 1.3400 (Psychological Level).On the downside, immediate support is seen at 1.3214(9 DMA), a break below could take the pair towards 1.3145 (21 DMA).
USD/JPY: The dollar weakened against the Japanese yen on Thursday, after global central banks startled markets with heavy rate cuts and threats of more to come as world economic risks grow, boosting the appeal of the safe-haven Japanese currency. Broadening expectations of global monetary easing are now weighing on currencies such as the dollar and the euro, providing the yen with further support. The yen was 0.15% firmer at 106.105 per dollar. It touched 105.500 overnight, its strongest level since January 3, before pulling back slightly. The dollar index against a basket of six major currencies stood little changed at 97.62 after dipping 0.1% overnight. Strong resistance can be seen at 106.27 (5 DMA), an upside break can trigger rise towards 107.00(Psychological level).On the downside, immediate support is seen at 105.57 (Lower Bollinger Band), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares had their best day in almost two months on Thursday, as upbeat trade data from China and a steadying of its currency helped to calm some fears of recession and a further escalation in Sino-U.S. trade tensions.
The UK's benchmark FTSE 100 closed up by 1.21 percent, Germany's Dax ended up by 1.68 percent, and France’s CAC finished the up by 2.31 percent.
U.S. stocks jumped on Thursday, led by a more than 2% gain in technology shares, while better-than-expected economic data in the United States and China helped to offset worries about the trade war.
Dow Jones closed up by 1.43 percent, S&P 500 ended up 1.88 percent, Nasdaq finished the day up by 2.24 percent.
Treasuries Recap
U.S. Treasury yields retreated further from their session highs on Thursday after Italian Deputy Prime Minister Matteo Salvini said the country’s governing coalition had broken down and he is ready for new elections, rekindling worries about the euro zone’s third biggest economy.
At (1902 GMT), benchmark Treasury 10-year note yields were up 2.30 basis points at 1.714%, below their session peak of 1.793% shortly after a mediocre $19 billion 30-year bond auction.
Commodities Recap
Gold edged down on Thursday as equities markets recovered, the U.S. dollar strengthened and traders locked in profits after bullion surged past $1,500 to a more than six-year high in the previous session.
Spot gold was down 0.2% at $1,498.45 per ounce as of 01:41 p.m. EDT (1741 GMT). U.S. gold futures settled down 0.7% at $1,509.50 per ounce.
Oil jumped more than 2% on Thursday on expectations that falling prices could lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation in U.S.-China trade tensions.
Brent crude ended the session up $1.15, or 2.1%, at $57.38 a barrel, after hitting a session high of $58.01.
U.S. West Texas Intermediate (WTI) crude futures rose $1.45, or 2.8%, to settle at $52.54 a barrel after hitting a peak of $52.98.
