Market Roundup
• UK May Unemployment Rate 3.9%, 4.2% forecast, 3.9% previous
• UK Average May Earnings ex Bonus 0.7%,0.5% forecast, 1.7% previous
• German June Car Registration (MoM) 31.0%,39.1% previous
• German June Car Registration (YoY) -32.3%, -49.5% previous
• UK Car June Registration (MoM) 618.0%, 368.6% previous
• UK May Average Earnings Index +Bonus 0.3%,-0.4% forecast, 1.0% previous
• UK May Employment Change 3M/3M (MoM) -125K, -234K forecast, 6K previous
• UK June Claimant Count Change -28.1K, 250.0K forecast, 528.9K previous
• French June CPI (MoM) 0.1%,-0.1% forecast, 0.1% previous
• French June HICP (MoM) 0.1%, -0.1% forecast, 0.2% previous
• Italian May Trade Balance EU 1.51B, -1.00B previous
• Italian May Trade Balance 5.584B, -1.157B previous
• EU June Deposit Facility Rate -0.50%, -0.50%,-0.50% previous
• EU Jul ECB Interest Rate Decision 0.00, 0.00% forecast,0.00% previous
• EU ECB Marginal Lending Facility 0.25%, 0.25% previous
• Canada May Foreign Securities Purchases by Canadians 13.37B,-0.13B previous
•Canada May Foreign Securities Purchases 22.41B, 49.00B previous
•US June Retail Sales Ex Gas/Autos (MoM) 6.7%, 4.2% forecast, 12.4% previous
• US June Retail Sales (MoM) 7.5%, 5.0% forecast, 17.7% previous
• US June Core Retail Sales (MoM) 7.3%, 5.0% forecast, 12.4% previous
• US July Philly Fed Business Conditions 36.0, 66.3 previous
• US July Philadelphia Fed Manufacturing Index 24.1, 20.0 previous, 27.5 previous
• US July Philly Fed Prices Paid 15.70, 11.10 previous
• US July Philly Fed Employment 20.1, -4.3 previous
• US July Philly Fed CAPEX Index 26.6, 26.30 previous
• Canada ADP Nonfarm Employment Change 1,042.9K, 208.4K previous
• US Initial Jobless Claims 1,300K, 1,250K forecast, 1,314K previous
• US Continuing Jobless Claims 17,338K, 17,600K forecast ,18,062K previous
• US Jobless Claims 4-Week Avg 1,375.00K,1,437.25K previous
• Russia Central Bank reserves (USD) 574.2B, 569.8B previous
Looking Ahead - Economic Data (GMT)
• 14:00 US Jul NAHB Housing Market Index 60, 58 previous
• 14:00 US May Business Inventories (MoM) -2.3% , -1.3% previous
Looking Ahead - Economic events and other releases (GMT)
• 15:10 US FOMC Member Williams Speaks
• 17:30 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro held steady against dollar on Thursday after European Central Bank kept policy steady after a series of moves to support the pandemic-hit economy. The ECB also kept its deposit rate unchanged at a record low minus 0.5% while the main refinancing rate remains at zero.The ECB remains on track to buy up to 1.35 trillion euros worth of debt through next June under its Pandemic Emergency Purchase Programme (PEPP) and up to 1.8 trillion euros if other purchases are also included. Immediate resistance can be seen at 1.1457 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1353 (23.6% fib), a break below could take the pair towards 1.1321 (11 DMA).
GBP/USD: The British pound slipped on Thursday as risk aversion swept through markets, boosting the safe-haven appeal of the U.S. dollar as upbeat Chinese growth data failed to lift sentiment. The number of employees on company payrolls fell by 649,000 from March to June, but the largest declines came at the start of the lockdown, the Office for National Statistics said on Thursday. The people on payrolls fell by over 74,400 in June, compared with April’s 450,000 and May’s 124,000.With British gross domestic product data for May rising less than expected, investors are questioning whether the fiscal stimulus measures already announced will be enough to prop up the economy. Immediate resistance can be seen at 1.2602 (38.2% fib), an upside break can trigger rise towards 1.2663 (Higher BB).On the downside, immediate support is seen at 1.2485 (21 DMA), a break below could take the pair towards 1.2400 (50% fib).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as escalating U.S.-China tensions increased demand for dollar. Tension grew between the United States and China. The United States on Monday rejected China’s disputed claims to offshore resources in most of the South China Sea - a shift in tone which prompted a rebuke from Beijing. Immediate resistance can be seen at 0.9469 (38.2 % fib), an upside break can trigger rise towards 0.9526 (Higher BB).On the downside, immediate support is seen at 0.9423 (5 DMA), a break below could take the pair towards 0.9370 (23.6% fib).
USD/JPY: The dollar rose against the Japanese yen Thursday as demand for dollar increased on concern about deteriorating U.S.-China relations and the economic cost of a resurgence in coronavirus infections that is prompting some governments to reimpose containment measures. Investors were worried about a wide-ranging dispute between the United States and China over the control of advanced technologies and the protection of civil liberties in Hong Kong. Strong resistance can be seen at 107.25 (11 DMA), an upside break can trigger rise towards 107.45 (50% fib).On the downside, immediate support is seen at 106.82 (Daily low), a break below could take the pair towards 106.50 (38.2% fib).
Equities Recap
European shares eased from one-month highs on Thursday, as growing friction in U.S.-China relations put a dampener on hopes of a swift global recovery, while investors waited to hear from the European Central Bank.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.41 percent, Germany's Dax was down by 0.61 percent, France’s CAC finished was down by 0.69 percent.
Commodities Recap
Gold edged lower on Thursday as the dollar firmed, but worries over mounting coronavirus cases and worsening U.S.-China ties limited declines and kept it above the key $1,800 level.
Spot gold fell 0.4% $1,804.24 per ounce by 1208 GMT. It hit $1,817.71, its highest since September 2011, last week.U.S. gold futures fell 0.3% to $1,807.50.
Oil prices fell on Thursday after OPEC and other producers including Russia agreed to ease record supply curbs from August, though the drop was cushioned by tightening global inventories as economic activity picks up.
Brent crude fell 29 cents, or 0.66%, to $43.50 a barrel by 1121 GMT. West Texas Intermediate (WTI) crude was down 43 cents, or 1%, to $40.77 per barrel.
