Market Roundup
• US Continuing Jobless Claims 1,699K,1,678K forecast,1,677K previous
• US Initial Jobless Claims 215K, 214K forecast,207K previous
• US Jobless Claims 4-Week Avg 211.50K,213.25K previous
• Brazil Jul Markit Manufacturing PMI 49.9,50.6 forecast,51.0 previous
• Russia Central Bank reserves 519.9B,520.3B previous
• Canada Jul RBC Manufacturing PMI 50.2,49.2 previous
• US Manufacturing PMI 50.4,50.0 forecast, 50.0 previous
• US Construction Spending MoM -1.3%,0.3% forecast,-0.5% previous
• US Jul ISM Manufacturing Employment -51.7,53.4 forecast,54.5 previous
• US Jul ISM Manufacturing New Orders Index 50.8,50.0 previous
• US Jul ISM Manufacturing PMI 51.2,52.0 forecast, 51.7 previous
• US ISM Manufacturing Prices -45.1,49.6 forecast, 47.9 previous
• Brazil Trade Balance 2.29B,3.80B forecast,5.02B previous
Looking Ahead - Economic Data (GMT)
• 23:00 Japan Foreign Reserves, 1,322.3B previous
• 23:50 Japan Monetary Base YoY 3.8% forecast, 4.0% previous
• 01:30 Australia PPI QoQ Q2 0.2% forecast, 0.4% previous
• 01:30 Australia PPI YoY Q2 1.9% forecast, 1.9% previous
• 01:30 Australia Jun Retail Sales MoM 0.3% forecast,0.1% previous
• 01:30 Australia Retail Sales (QoQ) (Q2)0.3% forecast,-0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 23:50 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD:The euro edged higher against the U.S. dollar on Thursday, as investors were disappointed as Federal Reserve ruled out a lengthy rate-cutting cycle. Investors were hoping for a clear sign of several more cuts to come to support growth and stock market valuations. The disappointment spread to Europe as stocks opened lower on Thursday before recovering to make gains.The euro was up 0.14 percent at $1.1089, erasing an earlier loss tied to US dollar strength. An index that tracks the dollar versus a basket of six major currencies was down 0.23 at 98.34. Immediate resistance can be seen at 1.1114 (5 DMA), an upside break can trigger rise towards 1.1155 (11 DMA).On the downside, immediate support is seen at 1.1027 (Daily Low), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The British pound declined to hit 30-month low against dollar on Thursday as stronger dollar and renewed worries about a no-deal Brexit weighed on British pound. The pound plunged to a low of 1.2085 , its weakest since January 2017. It came after the U.S. Federal Reserve's less dovish than expected policy meeting on Wednesday spurred dollar buying, and before the BoE kept interest rates on hold but cut its growth forecasts amid mounting Brexit risks. Meanwhile,the BoE kept rates on hold at 0.75% on Thursday but gave no indication it was considering lowering interest rates like other central banks. Sterling was last down 0.5% at $1.2140.Immediate resistance can be seen at 1.2174 (Daily high), an upside break can trigger rise towards 1.2256 (31st July high).On the downside, immediate support is seen at 1.2074 (23.6% retracement level), a break below could take the pair towards 1.2474 (Daily Low).
USD/CAD: The Canadian dollar weakened to a six-week low against its U.S. counterpart on Thursday as oil prices fell and after hawkish comments by the Federal Reserve the previous day boosted the greenback. The U.S. dollar gained against a basket of major currencies as investors decided a lengthy U.S. easing cycle was unlikely after the Fed cut interest rates on Wednesday for the first time in more than a decade. The price of oil, one of Canada's major exports, declined on Thursday for the first time in six days, after the Fed was less dovish than expected and as rising U.S. output helped keep the market well supplied. U.S. crude oil futures were down 2.9% at $56.88 a barrel. At (1423 GMT), the Canadian dollar was trading 0.2% lower at 1.3219 to the greenback, or 75.65 U.S. cents. Immediate resistance can be seen at 1.3400 (Psychological Level), an upside break can trigger rise towards 1.3424 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3175 (5 DMA), a break below could take the pair towards 1.3139 (11 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday, after the Federal Reserve cut rates a day earlier but cautioned it was not necessarily the start of a cycle of monetary loosening, sending the euro to a 26-month low and the British pound to a 30-month low.In a widely expected move, the U.S. central bank cut rates on Wednesday for the first time since the financial crisis, in response to the growing risk of higher import tariffs and a slowdown in the world’s major economies. But it also signaled that the quarter point cut was a mid-cycle policy adjustment. The Fed’s less-dovish-than-expected message triggered a rebound in the dollar, sending the index to a 26-month high of 98.93 on Thursday. The dollar was 0.47 percent higher versus the Japanese yen at 111.63. Strong resistance can be seen at 108.62 (11 DMA), an upside break can trigger rise towards 109.60 (100 DMA).On the downside, immediate support is seen at 107.27 (Daily Low), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares ended higher on Thursday as strong earnings from British American Tobacco and a multibillion dollar merger in the financial sector helped dispel early gloom after the U.S. Federal Reserve played down prospects for several rate cuts.
UK's benchmark FTSE 100 closed down by 0.03 percent, the pan-European FTSEurofirst 300 ended the day down by 1.83 percent, Germany's Dax ended down by 0.53 percent, France’s CAC finished the day up by 0.70 percent.
U.S. stocks rebounded on Thursday from a steep selloff in the prior session, boosted by technology shares, as investors shrugged off a cautious outlook from the Federal Reserve on interest rate cuts and focused on corporate earnings.
Dow Jones closed up by -1.05 percent, S&P 500 ended down 0.90 percent, Nasdaq finished the day down by 0.79 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday, with longer-dated yields hitting four-week lows asinvestors piled into U.S. government debt on the view global economic growth would decelerate further and domestic inflation would stay sluggish.
At 12:10 p.m. (1610 GMT), yields on benchmark 10-year Treasury notes were 5.50 basis points lower at 1.966%. They touched 1.952% earlier Thursday, which was the lowest since July 5.
The 30-year bond gained 1 point in price for a yield of 2.481%, down 4.50 basis points on the day. Thirty-year yields hit 2.465%, the lowest since July 5.
Commodities Recap
Gold rose nearly 2% on Thursday after U.S. President Donald Trump said he would impose additional tariffs on Chinese imports, renewing trade tensions between the two countries, dragging the dollar down from two-year highs and sending bond yields lower.
Spot gold rose 1.9% to $1,440.02 per ounce as of 2:14 p.m. EDT (1814 GMT), while U.S. gold futures rose nearly 1% to $1,450.90.
Oil prices plummeted more than 7% on Thursday to the lowest level in about seven weeks, after U.S. President Donald Trump said he would impose an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1.
Brent crude fell $4.55, or 6.99%, to settle at $60.50 a barrel, having dropped as low as $60.02, the lowest since June 13. The international benchmark’s decline on Thursday was its biggest daily percentage drop since February 2016.
