Europe Roundup: Euro hits 3-month high, on course for third week of gains, European shares gain, Gold falls, Oil rises as traders await OPEC+ meeting on extending supply cuts-June 5th,2020

Market Roundup

• German April Factory Orders (MoM)  -25.8%,-19.7% forecast, -15.6% previous

• Spanish April Industrial Production (YoY)  -33.6%,-12.2% previous

• UK May Halifax House Price Index (MoM)  -0.2%,-0.7% forecast, -0.6%  previous

• UK May Halifax House Price Index (YoY) 2.6%,2.7% previous

• Italian April Retail Sales (MoM)  -10.5%,-20.5% previous

• Italian April Retail Sales (YoY)  -26.3%, -18.4% previous

• Irish GDP (QoQ) (Q1) 1.2%,1.8% previous

• Irish GDP (YoY) (Q1) 4.6%,6.2% previous

Looking Ahead Economic Data

• 12:30 US May Private Nonfarm Payrolls  -7,500K forecast, -19,557K previous 
   
• 12:30 US May Nonfarm Payrolls  -8,000K forecast,  -20,537K previous    

• 12:30 US May Manufacturing Payrolls -440K forecast, -1,330K previous 
   
• 12:30 US May Government Payrolls -980.0K previous    

• 12:30 Canada May Full Employment Change -1,472.0K previous

•12:30 Canada May Part Time Employment Change -521.9K previous

• 12:30 US May Average Hourly Earnings (MoM)  1.0% forecast, 4.7% previous

• 12:30 US May Unemployment Rate  15.0% forecast, 13.0% previous

• 12:30 US May Participation Rate  59.8% previous

• 12:30 US May Average Weekly Hours  34.3 forecast, 34.2 previous

• 12:30 US May Unemployment Rate  19.7% forecast, 14.7% previous

• 12:30 US May Participation Rate  60.2% previous

• 12:30 US May Average Hourly Earnings (YoY) (YoY)  8.5% forecast, 7.9% previous

• 12:30 US May U6 Unemployment Rate 22.8% previous

• 12:30 US May Employment Change -500.0K forecast, -1,993.8K previous

• 13:00 Russia May CPI (MoM)  0.3% forecast, 0.8% previous

• 13:00 Russia May CPI CPI (YoY)  3.0%,3.1% previous

• 13:00 Brazil Auto Production (MoM) -99.0% previous

• 13:00 Brazil Auto Sales (MoM) -67.7% previous

• 14:00 Canada May Ivey PMI  22.8 previous

• 14:00 Canada May Ivey PMI n.s.a  23.6 previous

• 19:00 US April Consumer Credit   -20.00B forecast, -12.04B previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro jumped to a three-month high on Friday after the European Central Bank expanded its stimulus more than expected to prop up an economy dealing with its worst recession since World War Two. The ECB’s move supported appetite for riskier currencies, lifting the Australian dollar to a five-month high and the British pound above peaks hit during the last two months. The central bank increased its emergency bond purchase scheme by a bigger-than-expected 600 billion euros to 1.35 trillion and extended the scheme to mid-2021.The euro rose 0.25% to $1.1367, its loftiest level in almost three months. On the week, the single currency has risen 2.4% and is set to clinch a third straight week of gains. Immediate resistance can be seen at 1.1381 (June 4th high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1240  (5 DMA), a break below could take the pair towards 1.1172 (23.6% fib). Immediate resistance can be seen at 1.1381 (June 4th high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1240  (5 DMA), a break below could take the pair towards 1.1172 (23.6% fib).

GBP/USD: Sterling rose to hit three-month high on Friday as sterling was boosted after Bank of England playing down the prospect of negative rates soon. The pound has gained 5% against the dollar since a low of $1.2075 in mid-May. The currency has recently been weighed down by the Britain’s high COVID-19 death toll, as well as Brexit-related risks, the prospect of negative interest rates and the country’s growing debt pile The pound hit a three-month high of $1.2690 at 0743 GMT, having strengthened during the overnight session. It has gained more than 3 cents since last Friday.Immediate resistance can be seen at 1.2728 (61.8% fib), an upside break can trigger rise towards 1.2800 (Psychological level).On the downside, immediate support is seen at 1.2578 (5 DMA), a break below could take the pair towards 1.2500 (Psychological level).

USD/CHF: The dollar edged lower against the Swiss franc on Friday as some traders  chose to take profits ahead of Friday’s nonfarm payrolls data. Investor attention is now focused on Friday’s U.S. employment report, which is expected to show nonfarm payrolls fell in May by 8 million jobs after a record 20.54 million plunge in April.The U.S. unemployment rate is forecast to rocket to 19.8%, a post-World War Two record, from 14.7% in April. Immediate resistance can be seen at 0.9596 (5 DMA), an upside break can trigger rise towards 0.9630 (38.2% fib).On the downside, immediate support is seen at 0.9545 (50% fib), a break below could take the pair towards 0.9458(61.8% fib ).

USD/JPY: The dollar was little changed against the Japanese yen on Friday as a recent rally fuelled by hopes of an economic rebound ran out of steam and investors locked in profits ahead of Non-farm payrolls data. Investors are pricing in a global economic recovery despite data showing the severe damage wrought by the coronavirus lockdowns. Later in the day, U.S. nonfarm payrolls figures are expected to show further deterioration in the country’s jobs market. The U.S. dollar was a tad higher against the Japanese yen at 109.32, having risen 1.4% so far this week. Strong resistance can be seen at 109.50 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.60(5 DMA), a break below could take the pair towards 107.80 (38.2 % fib).

Equities Recap

European stocks are back to being favourites as the absence of a major second wave of coronavirus infections has helped ramp up re-opening plans, a boost to the region’s economically sensitive cyclical sectors.

At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 1.74 percent, Germany's Dax was up by 1.76 percent, France’s CAC was last up by 1.94 percent.

Commodities Recap

Gold fell and was on track for a third straight weekly decline on Friday, weighed down by gains in riskier assets as investors grew more hopeful of a rebound in the coronavirus-hit global economy.

Spot gold was down 0.3% at $1,705.73 per ounce at 1140 GMT. U.S. gold futures fell 1.2% to $1,707.30.

Oil prices moved higher on Friday as traders await cues from a meeting that could take place as soon as this weekend where major oil producers will discuss whether to extend record production cuts.

Brent crude   futures were up 27 cents, or 0.7%, at $40.26 a barrel as of 0620 GMT, while U.S. West Texas Intermediate (WTI) crude   futures rose 17 cents, or 0.5%, to $37.58 a barrel.