Market Roundup
• Canada May Wholesale Sales (MoM) 5.7%, 8.5% forecast, -21.6% previous
• US June Building Permits (MoM) 2.1%, 14.1% previous
• US June Building Permits 1.241M, 1.290M, 1.216M previous
• US June Housing Starts 1.186M, 1.169M, 0.974M previous
• US June Housing Starts (MoM) 17.3%,4.3% previous
• US Jul Michigan Consumer Expectations 66.2 , 73.5 forecast, 72.3 previous
• US Jul Michigan Current Conditions 84.2, 86.5 forecast, 87.1 previous
• US Jul Michigan Consumer Sentiment 73.2, 79.0 forecast, 78.1 previous
• US Michigan Inflation Expectations 3.1%, 3.0% previous
• US Jul Michigan 5-Year Inflation Expectations 2.70%, 2.50% previous
• Russia June Retail Sales (YoY) -7.7%,-12.3% forecast, -19.2% previous
• Russia June Unemployment Rate 6.2%,6.3% forecast ,6.1% previous
• Russia May Russian Real Wage Growth (YoY) 1.0%,-3.5% forecast , -2.0% previous
• Russia June GDP Monthly (YoY) -6.4% , -10.9% previous
Looking Ahead - Economic Data (GMT)
• No data ahead
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro held steady against dollar on Friday as investors waited on the European Union to iron out details of an expected 750 billion euro recovery fund that could provide another round of stimulus as the world economy reels from the coronavirus pandemic. European leaders will continue to meet through Saturday, trying to overcome opposition from the Netherlands and Hungary to issue joint euro debt that could provide another boost of stimulus. Immediate resistance can be seen at 1.1457 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1353 (23.6% fib), a break below could take the pair towards 1.1321 (11 DMA).
GBP/USD: Sterling fell against the dollar as sterling was weighed down by Britain’s bleak economic outlook, Brexit uncertainties and the possibility of negative interest rates. Prime Minister Boris Johnson eased some lockdown measures on Friday, but also announced local authorities will have power to shut down smaller areas of the country if necessary.The pound did not strengthen on the news of fewer restrictions and remains the worst-performing G10 currency this week, down 0.8% against the dollar. The pound was 0.3% lower against the dollar at $1.2564. Immediate resistance can be seen at 1.2602 (38.2% fib), an upside break can trigger rise towards 1.2663 (Higher BB).On the downside, immediate support is seen at 1.2485 (21 DMA), a break below could take the pair towards 1.2400 (50% fib).
USD/CAD: The Canadian dollar was slightly higher against a broadly weaker U.S. dollar in choppy trading on Friday, in line with gains in other commodity currencies, as risk appetite improved with shares on Wall Street posting gains. Earlier in the session, the commodity currencies traded modestly lower on the day, as crude oil prices slipped in the face of mounting uncertainty about the recovery in energy demand as new coronavirus cases surged.The Canadian dollar was up 0.1% at C$1.3569 per U.S. dollar. On the week, however, the Canadian dollar was up around 0.8% Immediate resistance can be seen at 1.3600 (Psychological level), an upside break can trigger rise towards 1.3626 (38.2% fib).On the downside, immediate support is seen at 1.3492 (Daily low), a break below could take the pair towards 1.3461(23.6% fib).
USD/JPY: The dollar dipped against the Japanese yen Friday as concerns over the coronavirus held back buying of risk-driven assets. While news of progress on a COVID-19 vaccine gave risk assets a slight boost earlier in the week, growing global cases and more signs of economic duress undercut any optimism. Rise in the coronavirus cases have seen investors pivoting into safe haven assets from riskier assets in search of better returns. Strong resistance can be seen at 107.25 (11 DMA), an upside break can trigger rise towards 107.45 (50% fib).On the downside, immediate support is seen at 106.82 (Daily low), a break below could take the pair towards 106.50 (38.2% fib).
Equities Recap
European shares edged higher on Friday as focus turned to Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund, with positive earnings updates from Ericsson, Daimler and other firms also supporting gains.
UK's benchmark FTSE 100 closed up by 0.63 percent, Germany's Dax ended up by 0.43percent, France’s CAC finished the day down by 0.31 percent.
The S&P 500 edged higher in choppy trading on Friday, as investors juggled between prospects of more fiscal stimulus and fears of further business disruptions due to another record-breaking rise in COVID-19 cases across the country.
Dow Jones was closed down by 0.23 percent, S&P 500 was up by 0.28 percent, Nasdaq was trading up by 0.28 0.73 percent.
Treasuries Recap
U.S. Treasury yields inched higher on Friday as investors weighed the prospect of new economic damage from shutdowns meant to stem the spread of COVID-19 against the possibility that the worst has passed.
Benchmark 10-year notes rose less than a basis point to 0.615%. They have held in a tight range from 0.569% to 0.784% since mid-June.
Commodities Recap
Gold jumped on Friday, poised for its sixth consecutive weekly gain, as a record-breaking rise in coronavirus infections in the United States fueled uncertainly about an economic recovery, while a weaker greenback also added support.
Spot gold rose 0.7% to $1,808.85 per ounce at 1:47 p.m. EDT (1747 GMT) and has gained 0.6% so far this week. U.S. gold futures settled up 0.5% at $1,810 per ounce.
Oil prices edged lower on Friday as concerns about the surge in coronavirus cases sapping fuel demand while major crude-producing nations ready increases in output.
Brent crude futures fell 23 cents a barrel to settle at $43.14 per barrel. U.S. West Texas Intermediate (WTI) crude fell 16 cents to $40.59. Both contracts were little changed from a week earlier.
