America’s Roundup: Dollar falls as other economies enter recovery, Wall Street ends higher, Gold slumps 2%,Oil moves higher, hovers below $40 as doubts emerge over next step on OPEC cuts-June 4th,2020

Market Roundup

• US May ADP Nonfarm Employment Change-2,760K,  -9,000K forecast, -20,236K previous

• Canada Labor Productivity (QoQ) (Q1) 3.4%,1.2% forecast, -0.1% previous

• Brazil May Markit Services PMI 27.6, 27.4 previous

• Brazil May Markit Composite PMI  28.1,26.5 previous

• US May Services PMI 37.5 ,36.9 forecast, 26.7 previous

• US May Markit Composite PMI 37.0,36.4 forecast , 27.027.0

• Canada BoC Interest Rate Decision 0.25%, 0.25% forecast, 0.25% previous

• US April Factory Orders (MoM) -13.0%,-14.0% forecast, -10.4% previous    

• US May ISM Non-Manufacturing PMI 45.4, 44.0 forecast, 41.8 previous

• US May ISM Non-Manufacturing Prices 55.6,55.1 previous

• US May ISM Non-Manufacturing New Orders  41.9, 32.9 previous
    
• US May ISM Non-Manufacturing Employment  31.8,30.0 previous

• US May ISM Non-Manufacturing Business Activity  41.0,34.0 forecast, 26.0 previous

• US April Durables Excluding Defense (MoM)  -16.6%,-16.2% previous

• US April Factory orders ex transportation (MoM)  -8.5% ,-3.7% previous

• US Crude Oil Inventories -2.077M, 3.038M forecast, 7.928M previous

Looking Ahead Economic Data

• 23:50 Japan Foreign Investments in Japanese Stocks 75.4B previous

• 23:50 Japan Foreign Bonds Buying -432.9B previous

• 01:30 Australia April Retail Sales (MoM)   -17.9% forecast ,8.5% previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency summaries

EUR/USD: The euro strengthened for the seventh day on Wednesday as the prospects of more stimulus and hopes for economic recovery boosted euro across the board. The euro reached an 11-week high of $1.1125 on expectations policymakers will support the euro zone’s weakest economies with debt purchases. The common currency was last up 0.4%. The seven-day winning streak was the longest since December 2013. Immediate resistance can be seen at 1.1221 (Daily high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1168 (61.8 % fib), a break below could take the pair towards 1.1134 (5 DMA).

GBP/USD: Sterling strengthened against a broadly weaker dollar Wednesday as Britain showed signs it might be willing to compromise on sticking points to reach a Brexit deal. The dollar fell against most currencies as investors pondered what the potential fallout might be from the mass protests against racism spreading across the United States. And prospects for more government stimulus and a global economic recovery emboldened investors to step up holdings of riskier assets. Immediate resistance can be seen at 1.2607 (Higher BB), an upside break can trigger rise towards 1.2663 (200 DMA).On the downside, immediate support is seen at 1.2538 (61.8 %fib), a break below could take the pair towards 1.2463 (5 DMA).

USD/CAD: The Canadian dollar strengthened to a three-month high against its U.S. counterpart on Wednesday as investors bet on economic recovery and the Bank of Canada reduced the frequency of some emergency operations it introduced to support financial markets. The central bank held its key overnight interest rate steady and said the impact of the coronavirus pandemic on the global economy appears to have peaked, while the Canadian economy seems to have avoided worst-case projections. The Canadian dollar was trading 0.2% higher at 1.3487 to the greenback . Immediate resistance can be seen at 1.3569 (5 DMA), an upside break can trigger rise towards 1.3680 (11 DMA).On the downside, immediate support is seen at 1.3459 (200 DMA), a break below could take the pair towards 1.3400 (Psychological level).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as government stimulus expectations support investor confidence in an economic recovery from the coronavirus. Markets await Friday’s U.S. Labor Department May jobs report, which is expected to show unemployment soaring to a post-World War Two high of nearly 20% from 14.7% in April.On Wednesday, a report showed that U.S. private payrolls fell less than expected in May, suggesting layoffs were abating as businesses reopen. Investors are also focused on whether the European Central Bank will increase the size of its 750 billion euro ($669 billion) Pandemic Emergency Purchase Programme, when it meets on Thursday. Strong resistance can be seen at 108.88 (Higher BB), an upside break can trigger rise towards 109.51 (23.6%fib).On the downside, immediate support is seen at 107.88 (38,2% fib), a break below could take the pair towards 107.42 (21 DMA).

Equities Recap

European shares rallied on Wednesday, with insurers jumping after France’s AXA said it would pay a dividend, while improving global data spurred bets of faster economic recovery from the coronavirus crisis.

UK's benchmark FTSE 100 closed up by  2.61 percent, Germany's Dax ended up by 3.88 percent, France’s CAC finished the day up by 3.36 percent.        

Wall Street rallied broadly on Wednesday with the Nasdaq approaching record highs as signs of an economic recovery from mandated shutdowns helped investors look beyond U.S. social unrest and pandemic worries.

Dow Jones closed down by 2.06 %percent, S&P 500 closed up by 1.36% percent, Nasdaq settled down  by 0.78% percent.

Treasuries Recap

U.S. Treasury yields rose on Wednesday while riskier assets gained favor after a report showed that U.S. private payrolls fell much less than expected in May as businesses reopened amid the coronavirus pandemic. 
The yield on the benchmark 10-year note was up 8.6 basis points at 0.7656% in afternoon trading, its highest level since April.

Commodities Recap

Gold fell more than 2% on Wednesday as risk sentiment improved on hopes of a recovery from a coronavirus-driven economic slump, with investors largely overlooking civil unrest in the United States and its friction with China.

Spot gold slid 1.9% to $1,693.83 per ounce by 11:00 a.m. EDT (1500 GMT), having earlier hit a near one-month low of $1,688.89.U.S. gold futures fell 2.2% to $1,696.40.

Oil ended slightly higher on Wednesday but remained below the session’s early highs above $40 a barrel, the highest since March, retreating as doubts emerged about the timing and scale of a potential extension to the pact between OPEC and its allies to cut crude supplies.

Brent crude futures for August  settled up 22 cents, or 0.6%, at $39.79 a barrel. The session high of $40.53 was the highest since March 6. West Texas Intermediate (WTI) crude for July   rose 48 cents, to $37.29 a barrel.