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America’s Roundup: U.S. dollar skids to 4-month low, Wall Street closes lower, Gold jumps 1%,Oil falls on coronavirus demand concerns, weak U.S. jobs numbers-July 24th,2020

Market Roundup

• Euro retreats from nearly 2-year high

• U.S. jobless claims rise, add to dollar bearishness

•   US Continuing Jobless Claims 1,416K, 17,067K forecast, 17,338K previous

•   US Jobless Claims 4-Week Avg 1,360.25K ,  1,375.00K previous

•   US Initial Jobless Claims 16,197K, 1,300K forecast, 1,300K previous

•   Russia Central Bank reserves (USD)   574.0B,  574.2B previous

•   US  Leading Index (MoM)   2.0%, 2.1% forecast, 2.8% previous

•   EU Consumer Confidence -15.0, -12.0 forecast, -14.7 previous

•   US Jul KC Fed Composite Index 3, 1 previous

•   US Jul KC Fed Manufacturing Index 7, 2 previous

Looking Ahead Economic Data

• 23:40 New Zealand June  Trade Balance (YoY)  -1,330M previous

• 23:40 New Zealand June  Imports  4.14B previous

• 23:40 New Zealand June Trade Balance (MoM) 1,253M previous

• 23:40 New Zealand Manufacturing PMI 53.6 forecast, 51.2

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro strengthened against dollar on Thursday as sentiment continued to improve in the region after a landmark European Union deal to help coronavirus-stricken economies. EU leaders agreed on Tuesday after a four-day summit a 750 billion euro coronavirus recovery package. The euro was up 0.1% at $1.1595, just below a 21-month high of $1.1622 hit earlier on Wednesday. Immediate resistance can be seen at 1.1622 (23rd July high), an upside break can trigger rise towards 1.1700 (Psychological level).On the downside, immediate support is seen at 1.1558 (Daily low), a break below could take the pair towards 1.1494 (38.2% fib).

GBP/USD: Sterling fell against dollar on Thursday after the European Union’s chief Brexit negotiator said that the UK had shown no willingness to break the deadlock on talks over a new trade agreement. Speaking after this week’s round of negotiations in London, Michel Barnier said there has been no progress at all on the question of ensuring fairness on state aid. In other news, Bank of England interest rate setter Jonathan Haskel said he was worried that Britain’s economic recovery from the coronavirus crisis could be slow, signalling his willingness to support more stimulus. Immediate resistance can be seen at 1.2746 (Daily high), an upside break can trigger rise towards 1.2857 (23.6% fib).On the downside, immediate support is seen at 1.2675 (5 DMA), a break below could take the pair towards 1.2614 (38.2 %fib).

USD/CAD: The Canadian dollar notched a fourth straight day of gains against its U.S. counterpart on Thursday, as an unexpected rise in U.S. weekly jobless claims raised worries about the outlook for the U.S. economy, leaving few takers for the U.S. dollar. The Canadian dollar was at C$1.3407 to the greenback, stronger than Wednesday's close of C$1.3416. The loonie touched a 6-week high of 1.3352 to the dollar, earlier in the session. Immediate resistance can be seen at 1.3430 (23.6% fib), an upside break can trigger rise towards 1.3511 (11DMA).On the downside, immediate support is seen at 1.3391 (Daily low), a break below could take the pair towards 1.3300 (Psychological level).

USD/JPY: The dollar dipped against the Japanese yen on Thursday as investors continued to sell the greenback on expectations a surge in coronavirus cases will make it difficult for the U.S. economy to outperform its peers. A rise in U.S. jobless claims last week, for the first time in four months, also added to pressure on the dollar, as a persistent increase in COVID-19 cases has put an apparent recovery in the labor market on stall speed and dampened consumer demand. Strong resistance can be seen at 106.97 (5 DMA), an upside break can trigger rise towards 107.25 (21 DMA).On the downside, immediate support is seen at 107.07 (5 DMA), a break below could take the pair towards 106.50 (38.2% fib).

Equities Recap

European shares ended flat on Thursday, after a jump in U.S. weekly jobless claims and falling euro zone consumer confidence put a dampener on economic recovery hopes, erasing earlier gains made on strong regional earnings reports.                                               

The UK's benchmark FTSE 100 closed up by 0.07 percent, Germany's Dax ended down  by 0.01 percent, and France’s CAC finished the down by 0.07 percent.

Wall Street dropped sharply on Thursday as investors fled market-leading tech shares due to mixed earnings reports and growing signs of a worsening coronavirus pandemic, which could exacerbate a deep economic recession.

Dow Jones closed down by 1.31 percent, S&P 500 ended down 1.23 percent, Nasdaq finished the day down by 2.29 percent.

Treasuries Recap

U.S. Treasury yields on the longer end of the yield curve drifted lower on Thursday as stocks fell and the auction yield for 10-year Treasury-Inflation Protected Securities (TIPS) hit an all-time low.

 The benchmark 10-year yield ended the U.S. trading session at 0.5774%, the lowest close since April 21.

Commodities Recap

Gold prices climbed over 1% to a nine-year high on Thursday, buoyed by weaker dollar and unprecedented stimulus measures to revive coronavirus-hit economies, while rise in U.S. jobless claims underpinned fears of a slow recovery.

Spot gold was up 1.2% to $1,893.71 per ounce by 11:34 a.m. ET (1533 GMT), having hit its highest since September 2011 at $1,894.53.U.S. gold futures rose 1.4 % to $1,891.10.

Oil prices fell 2% on Thursday as investors worried the U.S. Congress may not agree on a stimulus package and as jobless numbers rose, while analysts prepared to cut energy demand forecasts as the number of coronavirus cases surges higher.

Brent   futures fell 98 cents, or 2.2%, to settle at $43.31 a barrel, while U.S. West Texas Intermediate (WTI) crude   fell 83 cents, or 2.0%, to settle at $41.07.

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