Asia Roundup: Aussie eases as Beijing readies new security law, dollar plunges against yen on rising U.S.-China tension, Asian shares slump - Friday, May 22nd, 2020
America’s Roundup: Dollar weakens as euro climbs on EU common fund proposal, Wall Street climbs, Gold firms, Oil rise on recovery hopes-May 21st 2020
Europe Roundup: Euro gains against dollar ahead of Federal Reserve Chairman Jerome Powell’s speech, European shares slide, Gold steady, Oil holds near $30, caught between demand loss and supply cuts-May 13th,2020
Asia Roundup: Aussie hits 1-week trough as jobs plunge, greenback rallies as Powell shuns negative rates, Asian shares slump - Thursday, May 14th, 2020
America’s Roundup: Dollar climbs as U.S.-China tensions lift greenback, Wall Street ends mixed, Gold firms, Oil drops 4% on China-U.S. tensions, energy demand doubts-May 23rd 2020
Asia Roundup: Yen rallies against dollar on second wave virus fears, Asian shares plunge - Tuesday, May 12th, 2020
America’s Roundup: Dollar notches small weekly gain after weak U.S. data, Wall Street gains, Gold hits 7-year high, Oil prices jump as demand shows signs of picking up-May 16th,2020
Europe Roundup: Sterling tumbles on record-low retail data, trade tensions, European shares dip, Gold gains, Oil prices drop as China-U.S. tensions grow –May 22nd 2020
Asia Roundup: Euro rallies on Franco-German proposal for recovery fund, Asian shares consolidate as vaccine hopes ease, investors eye FOMC minutes - Wednesday, May 20th, 2020
Europe Roundup: Euro rallies on Franco-German proposal for recovery fund, European shares dips, Gold edges higher, Oil gains on signs of output cuts, improved demand-May 19th,2020
Europe Roundup: Sterling edges lower as Britain maintains fierce stance on Brexit, European stocks gain, Gold hits 3-week peak, Oil hits one-month high as signs of demand emerge amid coronavirus crisis-May 15th,2020
Europe Roundup: Sterling dips as rising U.S. yields lift dollar, European shares turn lower, Gold gains, Oil prices drop amid supply glut, fears of second coronavirus wave-May 11th,2020
America’s Roundup: U.S. dollar slides ahead of Fed's Powell speech, Wall Street dips, Gold gains, Oil rises as OPEC looks to deepen, extend supply cuts-May 13th,2020
Europe Roundup: Euro as German survey fuels optimism, European shares rise, Gold dips, Oil falls as U.S.-China tensions take toll-May 25th,2020
America’s Roundup: Dollar up as Powell downplays chances of negative U.S. interest rates ,Wall Street falls, Gold gains, Oil slips more than 1% despite surprise U.S. crude stock drawdown-May 14th,2020
Asia Roundup: Aussie eases on worsening U.S.-China tensions, dollar rallies against yen as risk sentiment slightly improves on potential Japanese stimulus, Asian shares consolidate - Monday, May 25th, 2020
Europe Roundup: Sterling consolidates near 6-week peak, Swiss franc, yen declines as China exempts some U.S. goods from retaliatory tariffs, European shares at multi-week peak - Wednesday, September 11th, 2019
Economic Data Ahead
DXY: The dollar index rose to a 1-week peak, after falling to a 2-1/2 week low earlier in the session, ahead of monetary policy decisions by the ECB on Thursday and the U.S. Federal Reserve next week, with investors hoping for further easing amid a slowdown in global growth. The greenback against a basket of currencies traded 0.3 percent up at 98.58, having touched a low of 97.86 earlier, its lowest since August 26.
EUR/USD: The euro plunged to a 1-week low amid doubts over whether the European Central Bank will announce a fresh round of asset purchases this week. The ECB is widely expected to push interest rates even further into negative territory at Thursday’s policy meeting to boost growth and inflation. The European currency traded 0.3 percent down at 1.1014, having touched a low of 1.1013 earlier, its lowest since September 4. Immediate resistance is located at 1.1067 (21-DMA), a break above targets 1.1116 (August 27 High). On the downside, support is seen at 1.1000, a break below could drag it below 1.0963 (August 30 High).
USD/JPY: The dollar advanced to a near 6-week peak as trade tensions eased after China's finance ministry announced exemptions for 16 types of U.S. products from additional retaliatory tariffs effective Sept. 17. The major was trading 0.1 percent up at 107.68, having hit a high of 107.84 earlier, its highest since August 1. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. producer price index and wholesale inventories. Immediate resistance is located at 107.97 (July 19 High), a break above targets 108.37 (July 16 High). On the downside, support is seen at 106.99 (5-DMA), a break below could take it lower at 106.59 (10-DMA).
GBP/USD: Sterling steadied near 6-week highs as no-deal Brexit risks receded as investors assessed the chances Prime Minister Boris Johnson can strike a Brexit deal with the European Union. The major traded 0.1 percent up at 1.2352, having hit a high of 1.2384 on Monday, it’s highest since July 26. Investors’ attention will remain on the development surrounding Brexit, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2400, a break above could take it near 1.2456 (July 17 High). On the downside, support is seen at 1.2312 (5-DMA), a break below targets 1.2224 (10-DMA). Against the euro, the pound was trading 0.3 percent up at 89.13 pence, having hit a high of 89.04 on Monday, it’s highest since July 25.
USD/CHF: The Swiss franc slumped to a 6-week low, as risk-appetite improved, boosted by optimism that a high-level meeting of U.S. and Chinese negotiators at Washington next month can deliver a breakthrough in the trade war. The major trades 0.2 percent up at 0.9932, having touched a high of 0.9940 earlier, it’s highest since August 1. On the higher side, near-term resistance is around 0.9949 (July 31 High) and any break above will take the pair to next level till 0.9975 (August 1 High). The near-term support is around 0.9875 (5-DMA), and any close below that level will drag it till 0.9813 (August 22 Low).
European shares rose to 6-week highs as China eased trade worries by saying it would exempt some U.S. goods from additional tariffs, while investors awaited the European Central Bank policy meeting.
The pan-European STOXX 600 index gained 0.7 percent at 389.18 points, while the FTSEurofirst 300 surged 0.6 percent to 1,529.74 points.
Britain's FTSE 100 trades 0.9 percent up at 7,335.30 points, while mid-cap FTSE 250 rallied 1.4 to 20,020.00 points.
Germany's DAX rose 0.8 percent at 12,367.38 points; France's CAC 40 trades 0.5 percent higher at 5,621.20 points.
Crude oil prices surged after a reported sharp decline in U.S. crude stocks and as OPEC member Iraq said the producer group will discuss whether to deepen output cuts. International benchmark Brent crude was trading 0.2 percent higher at $62.86 per barrel by 1030 GMT, having hit a high of $63.74 on Tuesday, its highest since August 1. U.S. West Texas Intermediate was trading 0.2 percent up at $57.96 a barrel, after rising as high as $58.74 on Tuesday, its highest since July 31.
Gold prices rebounded, snapping a 4-day losing streak amid expectations that the European Central Bank will roll out stimulus and cut interest rates. Spot gold was trading 0.5 percent up at $1,491.93 per ounce by 1039 GMT, having touched a low of $1,483.22 earlier, its lowest since August 13. U.S. gold futures were up 0.2 percent at $1,502.2 an ounce.
The Euro zone bond yields rose to their highest since early August amid doubts over whether the ECB will announce a fresh round of quantitative easing on Thursday. The German 10-year bond yield rose to -0.535 percent, a 1-month high, while 30-year German bond yields rose to 0.027 percent, holding in positive territory for a second day. German 10-year bond yields are 20 basis points above record lows reached a week ago.
The Japanese government bond prices fell, with Benchmark 10-year JGB futures falling 0.27 point to 154.40. The 10-year JGB yield rose 3 basis points to minus 0.200 percent, the highest since Aug. 9. The 20-year JGB yield rose 1.5 bps to 0.160 percent, while the 30-year JGB yield increased 1.5 bps to 0.290 percent. At the short end of the curve, the two-year JGB yield rose 1.5 bps to minus 0.280 percent.