Asia Roundup: Yen rallies as coronavirus worries deepen, gold set for 5th straight weekly gain, Asian shares slump - Friday, July 10th, 2020
America’s Roundup: U.S. dollar regains traction in FX markets, Wall Street drops, Gold retreats from near eight-year peak, Oil steadies as economic data overshadows coronavirus worries-July 8th,2020
Europe Roundup: Euro dips lower against dollar as markets balanced hopes for a global economic recovery, European stocks dips,Gold hits 8-year peak.Oil rises on manufacturing data, U.S. inventories-July 1st 2020
America’s Roundup: Dollar turns higher as focus turns to surging coronavirus cases, Wall Street jumps, Gold gains, Oil up more than 2% on U.S. jobs data but virus fears cap gains-July 3rd 2020
America’s Roundup: Dollar climbs from four-week low as U.S. stocks decline, Wall Street dips, Gold slips after nine-year high, Oil slips on fears rising COVID-19 cases to clip demand-July 10th,2020
America’s Roundup: U.S. dollar rises as surge in coronavirus cases boosts haven bid,Wall Street falls, Gold slides, Oil settles lower on rise in U.S. coronavirus cases-June 27th,2020
Asia Roundup: Aussie near 3-week peak ahead of RBA policy meeting, dollar steadies against yen as investors eye U.S. services sector data, Asian shares at 4-month high - Monday, July 6th, 2020
America’s Roundup: Dollar little changed against Japanese yen as virus fears counter gains, Wall Street gains, Gold edges higher, Oil steady as hopeful economic data face spike in virus cases-July 7th,2020
Europe Roundup: Sterling rises to three-week highs on news of Brexit talks, European shares slip, Gold steadies, Oil stable as rising virus cases, higher U.S. crude stockpiles stall recovery-July 8th,2020
Europe Roundup: Euro dips against dollar as coronavirus anxiety deepens, European stocks gain, Gold set for fifth weekly gain, Oil dips, heading for weekly loss as virus cases rise-July 10th,2020
Asia Roundup: Dollar gains as signs of recovery boost risk appetite, Asian shares rally, investors eye EZ CPI - Tuesday, June 30th, 2020
America’s Roundup: Dollar edges lower amid uncertain U.S. outlook, Wall Street gains,Gold gains, Oil slips slightly on rising coronavirus cases, returning Libyan supplies-1st July 2020
Asia Roundup: Aussie gains on upbeat retail sales, dollar consolidates within narrow ranges amid holiday-thinned trading, Asian shares at 4-month peak - Friday, July 3rd, 2020
Europe roundup: Sterling gains as dollar sags, investors eye month-end for trade deal, European stocks surge,Gold steadies off 8-year high, Oil prices gain on fall in U.S. crude stockpiles-July 2nd 2020
Asia Roundup: Japanese yen gains as China passes national security law, dollar steadies as investors eye U.S. manufacturing PMI, Asian shares nudge higher - Wednesday, July 1st, 2020
Europe Roundup: Sterling slips further to $1.24, weighed down by Brexit,European shares rise, Gold on course for third weekly gain, Oil prices inch up as demand upswing counters virus concerns-June 26th,2020
Europe Roundup: Euro eases on political uncertainties, greenback rallies amid U.S. China trade deal hopes, European shares nudge higher - Tuesday, November 5th, 2019
Economic Data Ahead
Key Events Ahead
DXY: The dollar index surged, extending previous session gains on optimism that U.S.-China trade talks will lead to de-escalation in tensions between both the economies. The greenback against a basket of currencies traded up at 97.58, having touched a low of 97.11 on Friday, its lowest since August 9.
EUR/USD: The euro plunged to a near 1-week low amid growing political uncertainty as the main candidates to become Spain’s next prime minister clashed over how to handle Catalan separatism, ahead of a repeat election that opinion polls show could be as inconclusive as the one in April. The European currency traded 0.1 percent down at 1.1122, having touched a low of 1.1112 earlier, its lowest since October 30. Immediate resistance is located at 1.1141 (5-DMA), a break above targets 1.1162. On the downside, support is seen at 1.1106, a break below could drag it below 1.1083 (21-DMA).
USD/JPY: The dollar rallied to a 5-day peak as Beijing and Washington showed signs of progress in trade talks. On Monday, The Financial Times stated that the United States is considering whether to drop some tariffs on Chinese goods. The major was trading 0.3 percent up at 108.84, having hit a high of 108.89 earlier, its highest since October 31. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. trade balance, JOLTS Job Opening, service PMI by Markit and ISM. Immediate resistance is located at 109.03 (October 28 High), a break above targets 109.31 (August 1 High). On the downside, support is seen at 108.29 (October 21 Low), a break below could take it near at 108.03 (October 14 Low).
GBP/USD: Sterling rose, reversing some of its previous session losses, after data showed UK's IHS Markit services Purchasing Managers’ Index edged up to 50.0 from 49.5 in September. Moreover, yesterday's weak PMI data muted any expectations of policy changes from the Bank of England at a policy meeting this week. The major traded 0.2 percent up at 1.2898, having hit a high of 1.2975 on Thursday, it’s highest since October 22. Investors’ attention will remain on the development surrounding Brexit and UK service PMI, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2949 (October 24 High), a break above could take it near 1.3000. On the downside, support is seen at 1.2806, a break below targets 1.2748. Against the euro, the pound was trading 0.2 percent up at 86.16 pence, having hit a high of 85.74 last month, it’s highest since May 8.
USD/CHF: The Swiss franc eased to a near 1-week low as risk appetite improved amid growing optimism the United States and China are on the verge of reaching a preliminary agreement. The major trades at 0.3 percent up at 0.9907, having touched a low of 0.9850 on Friday, it’s lowest since October 21. On the higher side, near-term resistance is around 0.9918 (21-DMA) and any break above will take the pair to the next level till 0.9934. The near-term support is around 0.9843, and any close below that level will drag it till 0.9800.
European shares rallied amid hopes that a U.S.-China trade deal could be signed this month.
The pan-European STOXX 600 index surged 0.05 percent at 403.56 points, while the FTSEurofirst 300 rallied 0.1 percent to 1,583.57 points.
Britain's FTSE 100 trades 0.3 percent up at 7,393.86 points, while mid-cap FTSE 250 fell 0.05 to 20,243.73 points.
Germany's DAX rose 0.2 percent at 13,158.38 points; France's CAC 40 trades 0.4 percent higher at 5,835.24 points.
Crude oil prices rallied to a 2-1/2 month peak as markets eye a possible extension or even a deepening of OPEC’s current production curbs as early as next year and hopes for a Washington-Beijing trade deal. International benchmark Brent crude was trading 1.1 percent at $62.73 per barrel by 1035 GMT, having hit a high of $62.86 earlier, its highest since September 26. U.S. West Texas Intermediate was trading 0.8 percent up at $56.93 a barrel, after rising as high as $57.39 on Monday, its highest since September 24.
Gold prices declined as U.S.-China trade deal hopes buoyed the greenback and improved risk appetite. Spot gold was trading 0.3 percent down at $1,502.36 per ounce by 1037 GMT, having hit a high of $1,516.05 on Friday, its highest since Oct. 25. U.S. gold futures declined 0.2 percent to $1,508.20 per ounce.
The U.S. Treasuries slumped during the afternoon session ahead of the country’s ISM non-manufacturing PMI for the month of October, scheduled to be released today by 15:00GMT and the September JOLTs job openings data, also due today. In addition, speeches by members of the Federal Open Market Committee (FOMC), Kaplan and Kashkari, due later in the day shall add further insights into the debt market. The yield on the benchmark 10-year Treasury yield jumped 3 basis points to 1.819 percent, the super-long 30-year bond yield surged nearly 4-1/2 basis points to 2.316 percent and the yield on the short-term 2-year traded tad higher at 1.600 percent.
The United Kingdom’s gilts fell during European trading hours after the country’s services PMI for the month of October touched the 50-point neutral mark, which separates expansion from contraction, a sign that the sector shall now start witnessing further expansion in the near-term. Investors will now keep a close eye on the Bank of England’s (BoE) monetary policy meeting, scheduled to be concluded on November 7 by 12:00GMT for further direction in the debt market. The yield on the benchmark 10-year gilts, gained nearly 1-1/2 basis points to 0.677 percent, the 30-year yield surged 2-1/2 basis points to 1.187 percent while the yield on the short-term 2-year hovered around 0.515 percent.
The German bunds plunged during European session ahead of the eurozone’s services PMI for the month of October, scheduled to be released on November 6 by 09:00GMT and the September retail sales, also due for release on the same day by 10:00GMT for additional direction in the debt market. The German 10-year bond yield, which move inversely to its price, jumped nearly 3 basis points to -0.320 percent, the yield on 30-year note surged nearly 4 basis points to 0.202 percent while the yield on short-term 2-year remained flat at -0.653 percent.
The Australian government bonds slumped during Asian session of the second trading day of the week tracking investors’ improved optimism over the U.S.-China trade deal. Meanwhile, the Reserve Bank of Australia (RBA) remained unchanged in its monetary policy decision, revealed early today. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped nearly 5 basis points to 1.120 percent, the yield on the long-term 30-year bond surged nearly 5 basis points to 1.796 percent and the yield on short-term 2-year gained 3-1/2 basis points to 0.899 percent.