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America’s Roundup: Dollar falls to 4-month lows vs yen, Wall Street closes lower, Gold smashes $1,900 barrier , Oil up on strong economic data, U.S.-China tensions cap gains-July 25th,2020

Market Roundup

• US July Services PMI 49.6, 51.0 previous, 47.9 previous

• US July Markit Composite PMI 49.6, 47.9 previous

• US July Manufacturing PMI 51.3,  51.5 forecast, 49.8 previous

• US June New Home Sales 0.776 M,  0.7M forecast, 682M previous

• US New Home Sales (MoM) 13.8 %, 4.0%,16.6% previous

• U.S. Baker Hughes Oil Rig Count 181,180 previous

Looking Ahead-Economic Data (GMT)

•No data ahead

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currencies Summaries

EUR/USD: The euro strengthened against dollar on Friday after a survey showed euro zone business activity bounced back to growth in July. Investors took   comfort from purchasing managers’ index (PMI) data which showed euro zone business activity bounced back to growth in July as more parts of the economy that were locked down to curtail the spread of the coronavirus reopened. The euro was at $1.16020, close to its highest level since October 2018, having enjoyed a winning streak for all of July, as the European Union’s passing of a 750 billion-euro recovery fund restored confidence. Immediate resistance can be seen at 1.1606 (23.6% fib), an upside break can trigger rise towards 1.1629 (23rd July high).On the downside, immediate support is seen at 1.1553 (5 DMA), a break below could take the pair towards 1.1491(38.2% fib).

GBP/USD: The pound surged ahead against a falling dollar on Friday and cable was set for its biggest weekly gain since the first week of June, although investors remained cautious about data pointing to an economic recovery. British PMI data beat all forecasts in a   poll of economists and shot up to 57.1 in July from 47.7 in June, indicating activity began to grow again after collapsing during the lockdown which began in March.But the data had limited market impact, as quickening growth does not mean a return to normal levels. At 2056 GMT, the pound was up 0.4% against the dollar at $1.2789. Immediate resistance can be seen at 1.2799 (Higher BB), an upside break can trigger rise towards 1.2861 (23.6% fib).On the downside, immediate support is seen at 1.2719 (5 DMA), a break below could take the pair towards 1.2633 (11 DMA).

USD/CAD: The Canadian dollar eased against its U.S. counterpart on Friday, but was set to finish the week about 1% higher, as the U.S. currency remained broadly weaker, weighed down by American economic uncertainty as coronavirus cases rise and U.S.-China relations further deteriorate The loonie, which has been helped in recent sessions by rising oil prices, found little of that support on Friday as oil prices were nearly flat on the day.The Canadian dollar was at C$1.3425 to the greenback , weaker than Thursday's close of C$1.3407 Immediate resistance can be seen at 1.3438 (23.6%fib), an upside break can trigger rise towards 1.3475 (9 DMA).On the downside, immediate support is seen at 1.3366 (Lower BB), a break below could take the pair towards 1.3303 (10th June low).

USD/JPY: The dollar declined against the Japanese yen on Friday as risk appetite diminished amid a slew of worries ranging from the delay in the stimulus package bill, the spike in virus cases, and U.S.-China tensions. U.S. coronavirus cases passed the 4 million mark, a milestone of a pandemic that has killed more than 143,000 Americans and thrown tens of millions out of work. The dollar fell 1% against the yen to 106.07 yen, having dropped to 105.76 yen, the lowest since mid-March. Strong resistance can be seen at 106.82 (5 DMA), an upside break can trigger rise towards 107.00 (Psychological level).On the downside, immediate support is seen at 106.11 (Daily low), a break below could take the pair towards 105.31 (23.6%fib).

Equities Recap

European shares fell on Friday as global sentiment soured after Beijing ordered United States to close its consulate in a Chinese city in retaliation to similar action from Washington.

UK's benchmark FTSE 100 closed down at 1.41 percent, Germany's Dax ended down by 2.02 percent, France’s CAC finished the the day down at 1.54 percent.

Wall Street retreated on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties.

Dow Jones closed up by 0.68 percent, S&P 500 ended up by 0.62 percent, Nasdaq finished the down by 0.94 percent.

Treasuries Recap

U.S. Treasury yields were mixed on Friday as stocks fell and the market looked ahead to developments next week on new fiscal stimulus steps, as well as a Federal Reserve meeting.

 The benchmark 10-year yield was last up less than a basis point at 0.5888%.

Commodities Recap

Safe-haven gold pierced the $1,900 per ounce ceiling on Friday for the first time since 2011 as a worsening U.S.-China row added to fears over the hit to a global economy already reeling from the coronavirus pandemic.

Spot gold climbed 0.6% to $1,899.03 per ounce by 12:42 p.m. EDT (1642 GMT), after hitting $1,905.99, the highest since September 2011.U.S. gold futures rose 0.4% to $1,896.90.

Oil prices rose on Friday, lifted by some supportive economic data, but tensions between the United States and China limited gains.

Brent crude futures   rose 3 cents to settle at $43.34 a barrel. U.S. West Texas Intermediate (WTI) crude  futures rose 22 cents to settle at $41.29 a barrel.For the week, Brent rose 0.5%, while U.S. crude rose 1.7%.


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