Market Roundup
- Oil falls on rise in U.S. crude stocks
- Gold gains on rising virus cases
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Consumer Price Index (MoM)(May)
- (0500 ET/0900 GMT) EZ Consumer Price Index - Core (YoY)(May)
- (0500 ET/0900 GMT) EZ Consumer Price Index - Core (MoM)(May)
- (0500 ET/0900 GMT) EZ Construction Output w.d.a (YoY)(Apr)
- (0500 ET/0900 GMT) EZ Consumer Price Index (YoY)(May)
- (0500 ET/0900 GMT) EZ Construction Output s.a (MoM)(Apr)
Key Events Ahead
- (0500 ET/0900 GMT) ECB's Mersch speech
- (0700 ET/1100 GMT) ECB's De Guindos speech
FX Beat
DXY: The dollar index eased as Beijing officials reported several new COVID-19 cases for the sixth consecutive day, while new infections hit record highs in six U.S. states yesterday. The greenback against a basket of currencies traded 0.2 percent down at 96.88, having touched a low of 95.72 on Wednesday, its lowest since March 10.
EUR/USD: The euro rose, reversing some of its previous session losses, after Germany’s monthly ZEW investor sentiment survey released yesterday showed investors are confident that German economy will be over the worst of the coronavirus impact by the end of the European summer. The European currency traded 0.1 percent up at 1.1274, having touched a low of 1.1212 on Friday, its lowest since June 4. Investors’ attention will remain on a series of data from Eurozone economies, EZ consumer price index, construction output, and ECB officials' speeches, ahead of U.S. building permits, housing starts, Fed Mester's speech and Fed Chair Powell's testimony. Immediate resistance is located at 1.1300 (10-DMA), a break above targets 1.1353. On the downside, support is seen at 1.1233, a break below could drag it below 1.1194.
USD/JPY: The dollar eased, extending prior session losses, weighed down by concerns about the coronavirus and geopolitical tensions in Asia. However, data showing U.S. retail sales jumped far more than expected in May limited downside. The major was trading 0.05 percent down at 107.27, having hit a low of 106.57 on Thursday, its lowest since May 11. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. building permits, housing starts, Fed Mester's speech and Fed Chair Powell's testimony. Immediate resistance is located at 107.83 (21-DMA), a break above targets 108.10 (10-DMA). On the downside, support is seen at 106.98, a break below could take it near at 106.74.
GBP/USD: Sterling steadied, hovering towards the 1.2600 handle, as investors await the Bank of England’s meeting on Thursday, when it is expected to announce a fresh increase of at least 100 billion pounds in its bond-buying program. The major traded 0.05 percent up at 1.2577, having hit a low of 1.2454 on Monday, it’s lowest since June 1. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2634 (5-DMA), a break above could take it near 1.2680. On the downside, support is seen at 1.2510, a break below targets 1.2473. Against the euro, the pound was trading 0.2 percent down at 89.68 pence, having hit a low of 90.24 on Monday, it’s highest since May 29.
AUD/USD: The Australian dollar nudged up on upbeat trial results for a COVID-19 treatment. The Aussie trades 0.4 percent up at 0.6913, having hit a low of 0.6776 on Monday, it’s lowest since June 2. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6960, a break above could take it near 0.7004. On the downside, support is seen at 0.6856, a break below targets 0.6839.
Equities Recap
Asian shares consolidated as a resurgence of global coronavirus cases offset hopes of a potential COVID-19 drug.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent.
Tokyo's Nikkei declined 0.6 percent to 22,455.76 points, Australia's S&P/ASX 200 index surged 0.8 percent to 5,991.80 points. South Korea's KOSPI jumped 0.1 percent to 2,140.68 points.
Shanghai composite index rose 0.1 percent to 2,933.89 points, while CSI 300 index traded 0.05 percent down at 4,014.73 points.
Hong Kong’s Hang Seng traded 0.3 percent higher at 24,425.86 points. Taiwan shares added 0.2 percent to 11,534.59 points.
Commodities Recap
Crude oil prices declined, halting a 3-day winning streak, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the coronavirus pandemic. International benchmark Brent crude was trading 1.1 percent lower at $40.26 per barrel by 0520 GMT, having hit a low of $36.98 on Friday, its lowest since May 29. U.S. West Texas Intermediate was trading 1.1 percent down at $37.49 a barrel, after falling as low as $34.38 on Monday, its lowest since May 29.
Gold prices surged amid worries about surging cases of the novel coronavirus in Beijing, although hopes of a potential COVID-19 drug and a stronger U.S. dollar limited upside. Spot gold was trading 0.1 percent up at $1,727.56 per ounce by 0530 GMT, having touched a high of $1,744.91 on Thursday, its highest since June 2. U.S. gold futures fell 0.3 percent to $1,731.
Treasuries Recap
The U.S. benchmark 10-year note yields gained five basis points to 0.755 percent, while the yield curve between 2-year and 10-year notes steepened two basis points to 55 basis points.
