Europe Roundup: Euro gains for the seventh day against dollar ,European shares rise, Gold dips, Oil tops $40 on OPEC cuts and demand recovery-June 3rd 2020

Market Roundup

• Swiss GDP (YoY) (Q1) -1.3%,-0.9% forecast, 1.5% previous

• Swiss GDP GDP (QoQ) (Q1) -2.6%,-2.0% forecast, 0.3% previous

• Russia May Markit Services PMI  35.9, 12.2 previous

• Italian May Services PMI  28.9, 26.5 forecast, 10.8 previous

• Italian May Composite PMI  33.9, 10.9 previous

• French May Markit Composite PMI 32.1, 30.5    forecast, 30.5  previous

• German May Services PMI  32.6, 31.4 forecast, 16.2 previous

• German May Composite PMI  32.3, 31.4 forecast, 17.4 previous

• German May Unemployment Change  238K, 200K forecast, 373K previous

• German May Unemployment  2.875M, 2.639M previous

• German May Unemployment n.s.a 2.813M, 2.470M forecast, 2.644M previous

• German May Unemployment Rate  6.3%, 6.2% forecast, 5.8% previous

• EU May Services PMI  30.5, 28.7 forecast, 12.0 previous

• UK May Composite PMI  30.0, 28.9 forecast, 13.8 previous

• UK May Services PMI  29.0, 28.0 forecast, 13.4 previous

• EU  April Unemployment Rate  7.3%,8.2% forecast, 7.4% previous

• US Mortgage Refinance Index 3,166.7, 3,466.2  previous

• US MBA Purchase Index 296.0, 281.2 previous

Looking Ahead Economic Data

• 12:15 US 12:15 May ADP Nonfarm Employment Change  -9,000K forecast, -20,236K previous

• 12:30 Canada Labor Productivity (QoQ) (Q1) 1.2% forecast, -0.1% previous

• 13:00 Brazil May Markit Services PMI  27.4 previous

• 13:00 Brazil May Markit Composite PMI  26.5 previous

• 13:45 US May Services PMI  36.9 forecast, 26.7 previous

• 13:45 US May Markit Composite PMI 36.4 forecast , 27.027.0

• 14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous

• 14:00 US April Factory Orders (MoM) -14.0% forecast, -10.4% previous    

• 14:00 US May ISM Non-Manufacturing PMI 44.0 forecast, 41.8 previous

• 14:00 US May ISM Non-Manufacturing Prices 55.1 previous

• 14:00 US May ISM Non-Manufacturing New Orders  32.9 previous    

• 14:00 US May ISM Non-Manufacturing Employment  30.0 previous

•14:00 US May ISM Non-Manufacturing Business Activity  34.0 forecast, 26.0 previous

• 14:00 US April Durables Excluding Defense (MoM)  -16.2% previous

• 14:00 US April Factory orders ex transportation (MoM)  -3.7% previous

• 14:30 US Crude Oil Inventories 3.038M forecast, 7.928M previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro strengthened for the seventh day on Wednesday as the prospects of more stimulus and hopes for economic recovery boosted euro across the board. The euro reached an 11-week high of $1.1125 on expectations policymakers will support the euro zone’s weakest economies with debt purchases. The common currency was last up 0.4%. The seven-day winning streak was the longest since December 2013. Immediate resistance can be seen at 1.1221 (Daily high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1168 (61.8 % fib), a break below could take the pair towards 1.1134 (5 DMA).

GBP/USD: Sterling strengthened against a broadly weaker dollar Wednesday as Britain showed signs it might be willing to compromise on sticking points to reach a Brexit deal. The dollar fell against most currencies as investors pondered what the potential fallout might be from the mass protests against racism spreading across the United States. And prospects for more government stimulus and a global economic recovery emboldened investors to step up holdings of riskier assets.. Immediate resistance can be seen at 1.2607 (Higher BB), an upside break can trigger rise towards 1.2663 (200 DMA).On the downside, immediate support is seen at 1.2538 (61.8 %fib), a break below could take the pair towards 1.2463 (5 DMA).

USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as demand for safe haven assets decreased as easing lockdowns and hopes for more monetary stimulus gave investors confidence. There are some signs of recovery in business activity as governments restart their economies, albeit in the knowledge that easing lockdowns too early could trigger a second wave of COVID-19. Broader economic optimism supported risk-sensitive currencies and pushed down the Safe havens. Immediate resistance can be seen at 0.9685(21 DMA), an upside break can trigger rise towards 0.9735 (23.6% fib).On the downside, immediate support is seen at 0.9630 (38.2% fib), a break below could take the pair towards 0.9580 (Lower BB ).

USD/JPY: The dollar edged higher against the Japanese yen on Wednesday    as investors pondered mass protests against racism spreading across the United States. The greenback grinded lower against safe-haven currencies due to concerns about the widening economic impact of protests in the United States. The U.S. Department of Defense has moved about 1,600 U.S. Army troops into the Washington, D.C., region, the Pentagon said on Tuesday, after several nights of violent protests. Strong resistance can be seen at 108.88 (Higher BB), an upside break can trigger rise towards 109.51 (23.6%fib).On the downside, immediate support is seen at 107.88 (38,2% fib), a break below could take the pair towards 107.42 (21 DMA).

Equities Recap

European shares joined a global rally on Wednesday, helped by gains in insurer Allianz and carmaker Renault, with signs of a pickup in business activity adding to hopes of a faster economic rebound as several countries relax coronavirus-led lockdowns.

At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 1.00 percent, Germany's Dax was up by 2.10 percent, France’s CAC was last up by 1.76 percent.

Commodities Recap

Gold prices extended losses on Wednesday as equities jumped to three-month highs on optimism over global economic recovery, though losses were limited by a weaker U.S. dollar and civil unrest in the United States.

Spot gold fell 0.5% to $1,718.26 an ounce by 0920 GMT after dropping about 0.7% on Tuesday. U.S. gold futures fell 0.7% to $1,722.70.

Oil climbed above $40 a barrel for the first time since March on Wednesday, supported by signs of recovery in coronavirus-hit demand, lower U.S. inventories and expectations that OPEC+ will keep oil output cuts in place.

Brent crude futures for August were up 41 cents, or 1%, at $39.98 by 1000 GMT, having earlier touched their highest since March 6 at $40.53. West Texas Intermediate (WTI) crude for July gained 56 cents, or 1.5%, to $37.37.

Treasuries Recap

Germany’s benchmark 10-year Bund yield rose on Wednesday to its highest since mid-April, pushed up by optimism in world markets a day before a European Central Bank meeting.

In early trade, 10-year German bond yields rose to -0.373% , their highest since mid-April. Ten-year bond yields across the euro area were 2-4 bps higher on the day.