Market Roundup
• Italian May Industrial Sales (YoY) -25.90%, -46.90% previous
•Italian May Industrial New Orders (MoM) 42.2%, -32.2% previous
•Italian May Industrial Sales (MoM) 41.90%, -29.40% previous
•Italian May Industrial New Orders (YoY) -34.7%,-49.0% previous
•EU CPI June (MoM) 0.3%,0.3% forecast, -0.1% previous
•EU Construction Output (MoM) 27.86%,-14.58% previous
•EU June CPI (YoY) 0.3%,0.3% forecast, 0.1% previous
•EU June Core CPI (MoM) 0.3%, 0.3% forecast, 0.0% previous
•EU June CPI ex Tobacco (YoY) 0.1%,0.0% previous
•EU June Core CPI (YoY) 0.8%,0.8% forecast, 0.9% previous
• Canada May Wholesale Sales (MoM) 5.7%, 8.5% forecast, -21.6% previous
• US June Building Permits (MoM) 2.1%, 14.1% previous
• US June Building Permits 1.241M, 1.290M, 1.216M previous
• US June Housing Starts 1.186M, 1.169M, 0.974M previous
• US June Housing Starts (MoM) 17.3%,4.3% previous
Looking Ahead - Economic Data (GMT)
• 14:00 US Jul Michigan Consumer Expectations 73.5 forecast, 72.3 previous
•14:00 US Jul Michigan Current Conditions 86.5 forecast, 87.1 previous
• 14:00 US Jul Michigan Consumer Sentiment 79.0 forecast, 78.1 previous
• 14:00 US Michigan Inflation Expectations 3.0% previous
• 14:00 US Jul Michigan 5-Year Inflation Expectations 2.50% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro held near four month high against dollar on Friday as hopes a European Union summit will make progress on a recovery fund boosted euro. No outcome is expected at the summit until evening, at best, but an agreement or a collapse in the talks would have a major impact on the currency when trading resumes. The euro was up 0.4% against the dollar, at $1.1425, near Wednesday's $1.1452, its highest since the coronarivus financial crash in March. Immediate resistance can be seen at 1.1435 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1356 (23.6% fib), a break below could take the pair towards 1.1335 (11 DMA).
GBP/USD: The pound fell on Friday and was set for its worst week in a month, weighed down by a bleak economic outlook after the week’s data showed few signs of an economic recovery.Prime Minister Boris Johnson eased some lockdown measures on Friday but also announced that local authorities will have power to shut down smaller areas of the country. With British gross domestic product data for May rising less than expected, investors doubt the fiscal stimulus measures already announced will be enough to prop up the economy. Immediate resistance can be seen at 1.2259 (38.2% fib), an upside break can trigger rise towards 1.2602 (38.2% fib).On the downside, immediate support is seen at 1.2485 (21 DMA), a break below could take the pair towards 1.2369 (50% fib).
USD/CHF: The dollar declined against the Swiss franc on Friday as souring relations between the United States and China and surging cases of the COVID-19 drove investors out of riskier assets. Hurting sentiment further was data which showed unexpected weakness in China's domestic consumption, which underscored the need for more policy support to bolster the recovery. However, China's economy returned to growth in the second quarter after a deep slump at the start of the year. Immediate resistance can be seen at 0.9430 (14 DMA), an upside break can trigger rise towards 0.9470 (38.2% fib).On the downside, immediate support is seen at 0.9400(Daily low), a break below could take the pair towards 0.9369 (23.6 % fib).
USD/JPY: The dollar held onto gains against Japanese yen on Friday as worries that a resurgence in the coronavirus is starting to curb economic activity drew safe-haven flows into the U.S. currency. Some investors say they are beginning to see troubling signs in recent data that a relentless surge in coronavirus infections is threatening the U.S. economy. Others point to a widening row between the United States and China as reason to avoid risky trades, which should keep the dollar in demand for the time being. The dollar stood at 107.19 yen , following a 0.3% gain in the previous session. Strong resistance can be seen at 107. 50 (50% fib), an upside break can trigger rise towards 107.87 (Higher BB).On the downside, immediate support is seen at 106.80 (16th July low), a break below could take the pair towards 106.54 (38.2% fib).
Equities Recap
European shares were little changed on Friday, with stocks trading in a narrow range as focus turned to Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.51percent, Germany's Dax was up by 0.23 percent, France’s CAC finished was down by 0.32 percent.
Commodities Recap
Gold rose on Friday and was headed for its sixth consecutive weekly gain as surging coronavirus cases fuelled demand for safe havens.
Spot gold had climbed 0.5% to $1,805.43 per ounce by 1145 GMT. U.S. gold futures were up 0.4% at $1,806.80.
Oil prices slipped on Friday amid growing uncertainty about the recovery in fuel demand as coronavirus cases surged in several countries, while major crude producers prepared to lift output.
Brent crude futures fell 32 cents to $43.05 a barrel by 1122 GMT. U.S. West Texas Intermediate (WTI) crude dropped 25 cents to $40.50. Both contracts were on track to remain broadly flat over the week.
Treasuries Recap
Long-term Italian government bond yields hovered around their lowest in months on Friday, the first day of a European Union summit where member states are debating a 750 billion euro recovery fund.
Italian 10-year yields were last up 1.4 bps at 1.25% , hovering around the 16-week low it touched on Thursday, when the ECB reassured markets it would most likely use the full firepower of emergency bond purchases to tackle the economic hit from the COVID-19 pandemic.German 10-year yields were steady at -0.47%.
