Market Roundup
- Oil heads for weekly decline
- Gold poised for 5th straight weekly rise
Economic Data Ahead
- No major economic data releases
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index surged after yesterdays weekly data showed the number of Americans filing for initial jobless benefits dropped to a near four-month low last week. The greenback against a basket of currencies traded 0.1 percent lower at 96.90, having touched a low of 96.24 on Thursday, its lowest since June 11.
EUR/USD: The euro eased, extending previous session losses as investors awaited fresh developments on a European Union recovery fund that aims to help the region’s economy rebound from the coronavirus pandemic. The European currency traded 0.2 percent down at 1.1264, having touched a high of 1.1370 on Thursday, its highest since June 11. Investors’ attention will remain on a series of data from Eurozone economies, ahead of the U.S. producer price index. Immediate resistance is located at 1.1310, a break above targets 1.1332. On the downside, support is seen at 1.1240, a break below could drag it below 1.1215.
USD/JPY: The dollar plunged to a 2-week low after a surge in new coronavirus infections in the United States undermined the case for a quick recovery in the economy. The major was trading 0.3 percent down at 106.84, having hit a low of 106.83 earlier, its lowest since June 26. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. producer price index. Immediate resistance is located at 107.44 (10-DMA), a break above targets 107.90. On the downside, support is seen at 106.66, a break below could take it near at 106.38.
GBP/USD: Sterling eased after rising to a 3-1/2 week peak in the prior session on finance minister Rishi Sunak’s plans to revive the economy. Sunak promised an additional 30 billion pounds ($38 billion) and announced bonuses to get furloughed staff back to work, cut value-added tax for the hospitality sector and temporarily scrapped a property tax on purchases of homes costing up to 500,000 pounds. The major traded 0.3 percent down at 1.2573, having hit a high of 1.2669 on Thursday, it’s highest since June 16. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2653, a break above could take it near 1.2691. On the downside, support is seen at 1.2545 (5-DMA), a break below targets 1.2500. Against the euro, the pound was trading 0.05 percent down at 89.55 pence, having hit a high of 89.45 earlier, it’s highest since June 17.
AUD/USD: The Australian dollar slumped as a surge in new coronavirus infections in the United States dented investor risk appetite. The major trades 0.5 percent down at 0.6928, having hit a high of 0.7001 on Thursday, it’s highest since June 11. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7005, a break above could take it near 0.7042. On the downside, support is seen at 0.6902 (21-DMA) a break below targets 0.6862.
Equities Recap
Asian shares declined as record-breaking new coronavirus cases in several U.S. states stoked concern about economic recovery.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.7 percent.
Tokyo's Nikkei eased 1.05 percent to 22,290.81 points, Australia's S&P/ASX 200 index fell 0.6 percent to 5,919.20 points. South Korea's KOSPI slumped 0.8 percent to 2,150.25 points.
Shanghai composite index eased 1.9 percent to 3,383.32 points, while CSI 300 index traded 1.8 percent down at 4,753.13 points.
Hong Kong’s Hang Seng traded 2.4 percent lower at 25,576.17 points. Taiwan shares shed 0.9 percent to 12,073.68 points.
Commodities Recap
Crude oil prices slumped to an over 1-week trough and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere would suppress fuel demand. International benchmark Brent crude was trading 1.3 percent down at $41.79 per barrel by 0607 GMT, having hit a low of $41.63 earlier, its lowest since July 1. U.S. West Texas Intermediate was trading 1.6 percent lower at $38.95 a barrel, after falling as low as $38.85 earlier, its lowest since June 29.
Gold prices declined but were set for a fifth straight weekly gain as worries over a spike in U.S. coronavirus cases kept the safe-haven metal near the $1,800-per-ounce level. Spot gold was trading 0.3 percent down at $1,797.53 per ounce by 0625 GMT, having hit a high of $1,818.09 on Wednesday, its highest since September 2011 and was up nearly 1.5 percent for the week. U.S. gold futures rose 0.2 percent to $1,806.80.
Treasuries Recap
The U.S. Treasury yields edged lower, with the benchmark 10-year note yield trading at 0.589 percent.
