Market Roundup
• UK Current Account (Q1) -21.1B, -15.4B forecast, -5.6B previous
• UK Business Investment (QoQ) (Q1) -0.3%,0.0% forecast, -0.5% previous
• UK Business Investment (YoY) (Q1) 0.8%,0.7% forecast, 1.8% previous
• UK GDP (YoY) (Q1) -1.7%,-1.6% forecast, 1.1% previous
• UK GDP (QoQ) (Q1) -2.2%,-2.0% forecast, 0.0% previous
• Swiss May Retail Sales (YoY) 6.6%,-19.9% previous
• French May PPI (MoM) -0.1%,-2.9% previous
• French May Consumer Spending (MoM) 36.6%, 30.0% forecast, -20.2% previous
• French CPI (MoM) -0.1%,0.1% previous
• French CPI (YoY) 0.1%,0.4% previous
• French HICP (MoM) -0.1%,0.3% forecast, 0.2% previous
• Spanish GDP (QoQ) (Q1) -5.2%,-5.2% forecast, 0.4% previous
• Spanish GDP (YoY) (Q1) -4.1%,-4.1% forecast, 1.8% previous
• EU CPI CPI (YoY) 0.3%,0.1% forecast, 0.1% previous
• Italian June CPI (YoY) -0.2%,-0.2% forecast, -0.2% previous
• Italian June HICP (MoM) 0.0%, 0.1% forecast, -0.3% previous
• EU June CPI, n.s.a 105.68,105.33 previous
• EU CPI (MoM) 0.3%,-0.1% previous
• EU Core CPI (YoY) 0.8%,0.8% forecast, 0.9% previous
• EU Core CPI (MoM) 0.3%,0.0% previous
Looking Ahead – Economic data (GMT)
•12:55 US Redbook (YoY) -6.1% previous
•12:55 US Redbook (MoM) -1.4% previous
•13:00 US April S&P/CS HPI Composite - 20 n.s.a. (YoY) 4.0% forecast, 3.9% previous
•13:00 US April S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.1% previous
•13:00 US April S&P/CS HPI Composite - 20 s.a. (MoM) 0.5%, 0.5% previous
•13:45 US June Chicago PMI 45.0 forecast , 32.3 previous
•14:00 US June CB Consumer Confidence 91.8 forecast, 86.6 previous
•14:30 US June Texas Services Sector Outlook -41.7 previous
•14:30 US June Dallas Fed Services Revenues -28.1 previous
Looking Ahead - Events, Other Releases (GMT)
• 15:00 US FOMC Member Williams Speaks
• 15:00 EU ECB's De Guindos Speaks
• 15:05 US FOMC Member Brainard Speaks
• 16:00 US Fed Chair Powell Testifies
• 18:00 US FOMC Member Kashkari Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as fresh batch of grim economic data kept the euro under pressure as sentiment faltered amid fears new COVID-19 hot spots across the world might jeopardise the swift recovery from the pandemic investors are hoping for. The common currency lost further ground against the dollar in morning trading after underlying price pressures dropped again in the euro zone, underscoring fears that consumer price growth will remain anaemic for years. Immediate resistance can be seen at 1.1249 (Daily high), an upside break can trigger rise towards 1.1288 (23.6% fib).On the downside, immediate support is seen at 1.1183 (30 DMA), a break below could take the pair towards 1.1165 (38.2 % fib).
GBP/USD: Sterling retreated against a broadly firmer dollar on Tuesday, as investors awaited confirmation of the government’s spending plans to lift an economy that posted its biggest contraction in 40 years in early-2020. The pound is already under pressure from fears that Britain will fail to clinch a trade deal with the European Union by the end-2020 deadline. Tuesday is the last day it can request an extension to the transition period, but it has refused to do so. Immediate resistance can be seen at 1.2313 (50% fib), an upside break can trigger rise towards 1.2383 (9 DMA).On the downside, immediate support is seen at 1.2164 (Lower BB), a break below could take the pair towards 1.2100 (Psychological level).
USD/CHF: The dollar gained against the Swiss franc on Tuesday, as upbeat U.S. home sales data supported dollar. But, fears of a surge in new COVID-19 cases could jeopardise a swift V-shaped recovery kept gains in check. News on the economic front was far better as dollar got a boost from the U.S. housing market quickly recovering in May from a plunge triggered by the pandemic. Immediate resistance can be seen at 0.9536 (50 % fib), an upside break can trigger rise towards 0.9557 (30 DMA).On the downside, immediate support is seen at 0.9489 (5 DMA), a break below could take the pair towards 0.9449 (38.2% fib ).
USD/JPY: The dollar gained against the Japanese yen on Tuesday as dollar buoyed home sales data. Contracts to buy U.S. previously owned homes rose by the highest percentage on record in May. But they remained below their February level and were down compared with May 2019, which also kept alive expectations for even more economic stimulus. It is an important week for U.S. data, with the ISM manufacturing index on Wednesday and monthly payrolls on Thursday, moved up a day due to observance of the Independence Day holiday on Friday. Federal Reserve Chair Jerome Powell is also testifying on Tuesday. Strong resistance can be seen at 107.91 (38.2% fib), an upside break can trigger rise towards 108.06 (38.2% fib).On the downside, immediate support is seen at 107.39 (5 DMA), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European stocks slipped on Tuesday, with banks and energy firms leading the losses at the end of a strong quarter, while UK markets took a hit from a worse-than-expected GDP reading.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.75 percent, Germany's Dax was up by 0.15 percent, France’s CAC finished was down by 0.18 percent.
Commodities Recap
Gold hovered close to its highest in nearly eight years on Tuesday and was set to post its biggest quarterly gain in over four years as a spike of coronavirus cases fuelled demand for safe havens.
Spot gold was little changed at $1,770.34 per ounce by 1017 GMT, only $8.72 below a near eight-year high of $1,779.06 hit last week. U.S. gold futures rose 0.2% to $1,784.10 per ounce.
Oil prices slipped on Tuesday amid rising COVID-19 cases and a possible return of Libyan oil production, which has been down to a trickle since the start of the year.
The more-active September contract for Brent fell 37 cents, or 0.88%, to $41.48 a barrel by 1125 GMT, paring Monday’s 92 cent gain. The August contract, which expires on Tuesday, fell 43 cents to $41.28.U.S. crude was down 45 cents, or 1.13%, at $39.25 a barrel.
