Market Roundup
• UK June Public Sector Net Cash Requirement 44.033B , 71.436B previous
• UK June Public Sector Net Borrowing 34.80B, 34.30B forecast, 54.50B previous
• Swiss June Trade Balance 3.216B, 2.801B previous
• Greek May Current Account (YoY) -0.914B, -1.133B previous
Looking Ahead Economic Data
• 12:30 Canada May Core Retail Sales (MoM) 12.0% forecast,-22.0% previous
• 12:30 Canada May Retail Sales (MoM) 20.0% forecast,-26.4% previous
• 12:30 Canada June New Housing Price Index (MoM) 0.1% forecast, 0.1% previous
• 12:30 US June Chicago Fed National Activity 2.61 previous
• 12:55 US Redbook (MoM) 3.0% previous
• 12:55 US Redbook (YoY) -5.5% previous
• 15:20 New Zealand GlobalDairyTrade Price Index 8.3% previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 German Buba Vice President Buch Speaks
•13:30 EU ECB's De Guindos Speaks
Fxbeat
EUR/USD: The euro hit its highest level since March on Tuesday after the European Union (EU) struck a deal for a massive stimulus plan to revive their coronavirus-hit economies. The hard-won deal - a compromise on concerns that thrifty northern states had about handouts for more profligate neighbours - was hailed as an important signal of unity by Europe’s leaders and a foundation for recovery. It sent the euro 0.2% higher to $1.1470, its strongest since March 9, though the gains were tempered by prior market expectations that the deal would eventually get agreed and the euro's recent run higher. Immediate resistance can be seen at 1.1464 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1411 (Daily low), a break below could take the pair towards 1.1369 (23.6% fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as optimism over a coronavirus vaccine and an EU agreement on a crucial recovery fund boosted sterling. The currency had enjoyed its best day in three-weeks on Monday, lifted by the generally buoyant market mood which allowed investors to overlook poor British economic data and lack of concrete progress on Brexit trade talks. The currency rose as high as $1.2716, the highest since June 11, but later slipped to $1.2681, up 0.2% on the day. Immediate resistance can be seen at 1.2721 (Higher BB), an upside break can trigger rise towards 1.2800 (Psychological level).On the downside, immediate support is seen at 1.2651 (Daily low), a break below could take the pair towards 1.2602 (38.2 % fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as worries about the pandemic’s economic and human toll pushed dollar lower. Surge in virus cases in the United States and globally have stoked doubts about economic recovery, helping swiss franc gain against dollar. At 12:00 GMT, the dollar was 0.01 percent lower versus the Swiss franc at 0.9388 . Immediate resistance can be seen at 0.9418 (14 DMA), an upside break can trigger rise towards 0.9473 (38.2% fib).On the downside, immediate support is seen at 0.9371 (23.6% fib), a break below could take the pair towards 0.9300 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen Tuesday as surging number of coronavirus cases kept demand for safe haven yen. European Union leaders appear close to an agreement on a massive stimulus plan for the bloc as the summit drags beyond a fourth day. EU Council President Charles Michel said he was confident the compromises he offered the 27 leaders would clinch a deal on a fund that many say is critical to dispel doubts about the bloc’s very future. Strong resistance can be seen at 107.48 (50% fib), an upside break can trigger rise towards 107.79 (50% fib).On the downside, immediate support is seen at 107.14 (5 DMA), a break below could take the pair towards 106.80 (Lower BB).
Equities Recap
European stock index futures rose on Tuesday after European Union leaders reached a “historic” deal on a massive stimulus plan for their coronavirus-hit economies.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.44 percent, Germany's Dax was up by 1.66 percent, France’s CAC finished was up by 1.15 percent.
Commodities Recap
Gold scaled a nine-year peak on Tuesday propelled by a softer dollar and expectations of more stimulus measures to resuscitate pandemic-hit economies, while silver sprinted past $20 for the first time since September 2016.
Spot gold gained 0.4% $1,823.29 per ounce by 0958 GMT after hitting its highest since September 2011. U.S. gold futures rose 0.5% to $1,825.50.
Oil prices rose on Tuesday, helped by positive news about vaccine trials and a European Union stimulus deal reaching levels last seen when an oil price war erupted in early March between Russia and Saudi Arabia.
Benchmark Brent crude was up $1.17 cents at $44.45 by 0904 GMT, on track for its biggest daily rise since mid-June at around 2.7%. West Texas Intermediate (WTI) gained 19 cents to $41.00, its highest daily rise in a month at around 2.6%.
Treasuries Recap
Italian government bond yields fell to their lowest since early March after European Union leaders agreed on a massive coronavirus recovery fund, but the move was short-lived, with most euro zone yields edging up during the morning.
The 10-year Italian government bond yield, which had already fallen 70 basis points in anticipation of the fund since it was first proposed on May 18
