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America’s Roundup: Dollar slides as risk appetite grows, US stocks ends mixed, Gold gains 1%, Oil prices steady as market awaits clarity on OPEC+ output cuts-June 4th,2020

Market Roundup

• ECB beefs up its bond-buying programme

• U.S. weekly jobless claims drop below 2 million

• Markets awaiting U.S. payrolls report on Friday

• US Imports 232.20B previous  200.69B, 232.20B  previous

• US Exports 151.28B,  187.80B previous

•  US Continuing Jobless Claims 21,487K,20,050K forecast, 21,052K previous

• US Jobless Claims 4-Week Avg 2,284.00K,2,608.00K previous

•  US Initial Jobless Claims1,877K,1,800K, 2,123K previous

• Canada April Exports 32.66B,42.07B forecast, 46.26B previous

•  US Nonfarm Productivity (QoQ) (Q1) -0.9%,-2.7% forecast,1.2% previous

• US Unit Labor Costs (QoQ) (Q1) 5.1%, 5.0% forecast, 0.9% previous

• Canada April Imports 35.91B, 41.37B forecast, 47.67B previous

• US April Trade Balance -49.40B, -49.00B forecast, -44.40B previous

Looking Ahead Economic Data

• 22:30 Australia May AIG Services Index  27.1 previous

• 23:30 Japan April Household Spending (YoY)  -15.4% forecast, -6.0% previous

• 23:30 Japan April Household Spending (MoM)  -8.7% forecast, -4.0% previous

• 23:50 Japan May Foreign Reserves (USD) 1,368.6B previous

• 05:00 Japan April Coincident Indicator (MoM)  -5.2% previous

• 05:00 Japan April Leading Index (MoM)  -7.2% previous

• 05:00 Japan Leading Index 84.7 forecast, 83.8 previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency summaries

EUR/USD: The euro jumped to a 12-week high against the U.S. dollar on Thursday after the European Central Bank increased stimulus to shore up economies hurt by the coronavirus pandemic. The ECB increased the size of its Pandemic Emergency Purchase Program (PEPP) to 1.35 trillion euros ($1.52 trillion) from 750 billion euros, more than the 500 billion-euro increase most analysts had expected, and extended it until June 2021 at the earliest, with a pledge to reinvest proceeds until at least the end of 2022.Immediate resistance can be seen at 1.1363 (Daily high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1187 (5 DMA), a break below could take the pair towards 1.1113 (9 DMA).

GBP/USD: Sterling fell on Thursday as Britain and the European Union (EU) continued their Brexit negotiations, before the late June deadline by which the United Kingdom needs to say whether it wants an extension of the transition period. The pound had gained after British officials said the United Kingdom might be able to reach a compromise on fisheries with the EU earlier this week. An improvement in risk sentiment had also helped the pound, pushing it up more than 3% in one week. But a strengthening dollar and worries that Britain will exit the EU without a trade deal at the end of the year weighed on the British currency .Immediate resistance can be seen at 1.2656 (Higher BB), an upside break can trigger rise towards 1.2700 (Psychological level).On the downside, immediate support is seen at 1.2504 (Daily low), a break below could take the pair towards 1.2409 (5 DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday, pulling back from an earlier near three-month high, as oil prices fell and domestic data showed a greater-than-expected plunge in exports due to the coronavirus crisis. Canada posted a trade deficit of C$3.25 billion in April as exports fell by nearly 30% to the lowest level in more than 10 years at C$32.7 billion. Analysts had forecast exports would be C$42.1 billion. The Canadian dollar was trading 0.2% lower at 1.3522 to the greenback. The currency touched its strongest intraday level since March 9 at 1.3468.Immediate resistance can be seen at 1.3532 (June 3rd high), an upside break can trigger rise towards 1.3608(23.6%fib).On the downside, immediate support is seen at 1.4026 (5 DMA), a break below could take the pair towards 1.3996 (55 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday  as global markets grew more optimistic about an economic recovery boosting dollar against Japanese yen. The U.S. currency had began strengthening in overnight trading, pushing the Japanese yen to a two-month low of 109.150. A reminder of the economic travails will come on Friday with the Labor Department’s jobs report, which is expected to show the U.S. unemployment rate sky-rocketing to a historic 19.7%. Strong resistance can be seen at 109.51 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.67 (5 DMA), a break below could take the pair towards 108.25 (9 DMA).

Equities Recap

A strong rally this week in European stocks stalled on Thursday as investors locked in profits, although euro zone banks surged after the European Central Bank ramped up its stimulus programme to prop up the coronavirus-hit economy.

UK's benchmark FTSE 100 closed down by  0.64 percent, Germany's Dax ended down by 0.45 percent, France’s CAC finished the day down by 0.21 percent.        

The Nasdaq 100 index retreated from an intraday record high on Thursday, with the S&P 500 and Dow Jones indexes also slipping as a rally fueled by hopes of a post-coronavirus economic recovery fizzled out.

Dow Jones closed up  by  0.05 percent, S&P 500 closed down by 0.34 percent, Nasdaq settled down  by 0.69% percent.

Treasuries Recap

Longer-term U.S. Treasury yields jumped on Thursday to levels not seen in months as European stimulus efforts and a slightly less grim U.S. jobs report helped support investor confidence.

 The benchmark 10-year yield was up 5.7 basis points in afternoon trading at 0.8184%. It touched as high as 0.822%, the most since March 27.

Commodities Recap

Gold rose more than 1% on Thursday as the dollar retreated and Wall Street paused its recent rally as dismal U.S. trade data overshadowed slightly upbeat labor market numbers and optimism about an economic rebound.

Spot gold was up 1.1% to $1,716.60 per ounce at 12:38 p.m. EDT (1638 GMT). U.S. gold futures rose 1.1% to $1,723.20.

Oil prices were little changed in choppy trade on Thursday as investors awaited a decision from top crude producers on whether to extend record output cuts.

Brent crude futures  ended the session 20 cents, or 0.5% higher, at $39.99 a barrel after a volatile session. U.S. West Texas Intermediate (WTI) crude   futures rose 12 cents to $37.41.

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