Market Roundup
• U.K. May Construction Output (YoY) -39.7%,-36.5% forecast, -44.0% previous
• U.K. May Trade Balance -2.81B, -8.10B forecast, -7.49B previous
• U.K. May Trade Balance Non-EU 0.65B, -1.56B forecast, -2.66B previous
• U.K. May Industrial Production (MoM) 6.0%,6.0% forecast, -20.3% previous
• U.K. May GDP (MoM) 1.8%,5.5% forecast, -20.4% previous
• U.K. Index of Services -18.9% forecast, -9.9% previous
• U.K.Monthly GDP 3M/3M Change-19.1%,-17.4% forecast, -10.4% previous
• German June HICP (MoM) 0.7% 0.7% forecast, 0.0% previous
• U.K.May Construction Output (MoM) 8.2%,14.5% forecast, -40.1% previous
• U.K.May Manufacturing Production (MoM) 8.4%,8.0% forecast, -24.3% previous
• U.K.May Manufacturing Production (YoY) -22.8, -23.9% forecast, -28.5% previous
• U.K.May Industrial Production (YoY) -20.0%, -20.8% forecast, -24.4% previous
• German June CPI (MoM) 0.6%,0.6% forecast, -0.1% previous
• German June German HICP (YoY) 0.8%, 0.8% forecast, 0.5% previous
• German June German CPI (YoY) 0.9%, 0.9% forecast, 0.6% previous
• EU May Industrial Production (MoM) 12.4%,15.0% forecast, -17.1% previous
• EU May Industrial Production (YoY) -20.9%,-20.0% forecast, -28.0% previous
• German Jul ZEW Economic Sentiment 59.3, 60.0 forecast, 63.4 previous
• German Jul ZEW Current Conditions -80.9, -65.0 forecast, -83.1 previous
• German Jul ZEW Economic Sentiment 59.6, 55.8 forecast, 58.6 previous
• US June Real Earnings (MoM) -2.3%, 0.5% previous
• US June CPI Index, s.a 257.21, 255.77 previous
• US June CPI, n.s.a (MoM) 0.55%,-0.67% previous
• US June Core CPI Index 266.07, 265.44 previous
• US June Core CPI (MoM) 0.2%, 0.1% forecast,-0.1% previous
• US June CPI (YoY) 0.6%, 0.6% forecast, 0.1% previous
• US June CPI Index, n.s.a. 257.80, 257.73 forecast, 256.39 previous
• US June CPI (MoM) 0.6%, 0.5% forecast, -0.1% previous
• US June Core CPI (YoY) 1.2%, 1.1% forecast, 1.2% previous
• US Redbook (MoM) 3.0%,-0.6% previous
• US Redbook (YoY) -5.5%, -6.9% previous
Looking Ahead - Economic Data (GMT)
• 15:00 US June Cleveland CPI (MoM) 0.3% previous
Looking Ahead - Economic events and other releases (GMT)
• 18:00 US FOMC Member Brainard Speaks
• 18:00 US FOMC Member Bullard Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as investors focused on the European Central Bank meeting on Thursday and EU summit at the end of the week, at which leaders will discuss the proposed EU-wide recovery fund. German Chancellor Angela Merkel said on Monday she could not guarantee that EU member states would reach an agreement on the 750 billion euro coronavirus recovery fund and a multi-year budget at the summit this week. Immediate resistance can be seen at 1.1392 (Higher BB), an upside break can trigger rise towards 1.1421 (June 10th high).On the downside, immediate support is seen at 1.1297 (23.6% fib), a break below could take the pair towards 1.1262 (21 DMA).
GBP/USD: Sterling declined against dollar on Tuesday after new data showed Britain’s economy was recovering more slowly than forecast. Gross domestic product rose by 1.8% in May after falling by a record 20.8% in April, the Office for National Statistics. Adding to fears was a warning from authorities that another, more deadly COVID-19 wave could kill up to 120,000 Britons over the winter. The pound fell 0.33% to $1.2510 versus the dollar and traded 0.4% lower against the euro at 90.77 pence. Immediate resistance can be seen at 1.2569 (38.2% fib), an upside break can trigger rise towards 1.2699 (Higher BB).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 Tuesday as escalating U.S.-China tensions dampened investor's risk appetite globally. 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 0.9425 (11DMA), an upside break can trigger rise towards 0.9463 (38.2% fib).On the downside, immediate support is seen at 0.9326 (23.6% fib), a break below could take the pair towards 0.9300 (Psychological level).
USD/JPY: The dollar rose against the Japanese yen Tuesday as currency traders were unfazed by diplomatic tensions between the United States and China and rising coronavirus cases. A resurgence of novel coronavirus infections has caused some areas to place new restrictions on business activity, injecting some caution into the multi-month stock market rally that is betting on a rapid economic recovery. 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 (13th June low), a break below could take the pair towards 106.54 (38.2% fib).
Equities Recap
European stocks dipped on Tuesday, hit by a drop overnight on Wall Street following a flare-up in U.S.-China tensions and new coronavirus restrictions.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.62 percent, Germany's Dax was down by 1.82 percent, France’s CAC finished was down by 1.91 percent.
Commodities Recap
Gold inched down on Tuesday as the dollar held firm, but concerns over surging coronavirus cases globally and renewed US-China tensions underpinned bullion’s safe haven appeal and kept it near $1,800 an ounce.
Spot gold eased 0.3% to $1,797.64 per ounce by 1009 GMT. U.S. gold futures fell 0.8% to $1,799.60.
Oil prices fell on Tuesday on worries that new restrictions to stem surging U.S. and Asian coronavirus cases could threaten a recovery in fuel demand just as OPEC+ producers prepare to increase output from August.
Brent crude futures fell 44 cents to $42.28 a barrel by 0840 GMT and U.S. West Texas Intermediate (WTI) crude futures slid 53 cents to $39.57.
Treasuries Recap
Investors retreated to safe euro zone government bonds on Tuesday after a surge in COVID-19 cases in California dampened Monday’s excitement over improved corporate earnings.
Germany’s 10-year Bund yield - the benchmark for the region - dropped around 1 basis point to -0.419%, with slightly bigger drops at the longer end of the curve .
Southern European yields also dipped, with the Italian 10-year yield at 1.301% and Spain’s 10-year yield down 2 bps at 0.435%.
