Market Roundup
•UK June Industrial Production (MoM) 9.3%,9.2% forecast, 6.2% previous
•UK Business Investment (QoQ) (Q2) -31.4%,-2.5% forecast, -0.3% previous
•UK Business Investment (YoY) (Q2) -31.3%,-8.8% forecast, 0.8% previous
•UK GDP (QoQ) (Q2) -20.4%,-20.5% forecast, -2.2% previous
•UK GDP (MoM) 8.7%,8.0% forecast, 1.8% previous
•UK Monthly GDP 3M/3M Change-20.4%,-21.2% forecast, -19.1% previous
•UK GDP (YoY) (Q2) -21.7% , -22.4% forecast, -1.7% previous
•UK Jun Manufacturing Production (MoM) 11.0%,10.0% forecast, 8.4% previous
•UK Jun Manufacturing Production (YoY) -14.6%,-15.0% forecast, -22.8% previous
•U.K. Construction Output (YoY) -24.8%,-24.8% forecast, -40.0% previous
•U.K. Jun Trade Balance -5.12B, -4.75B
•Italian Jul CPI (MoM) -0.2%.-0.1% forecast, -0.1% previous
•Italian Jul CPI (YoY) -0.4%,-0.3% forecast, -0.3% previous
•EU June Industrial Production (MoM) 9.1%,10.0% forecast, 12.4% previous
•Portuguese Jul CPI (MoM ) -1.3%,-1.3% forecast, 0.9% previous
•Portuguese Jul CPI (YoY) 0.1%,0.2% forecast, 0.1% previous
•US MBA Purchase Index 306.6, 300.7 previous
•US Mortgage Market Index 852.8, 798.8 previous
•US MBA 30-Year Mortgage Rate 3.06% , 3.14% previous
•US CPI Jul Index, s.a 259.10, 257.21 previous
•US Jul Real Earnings (MoM) -0.6% -2.3% previous
•US Jul CPI, n.s.a (MoM) 0.51% ,0.55% previous
•US Core CPI Index267.72, 266.07 previous
•US Core CPI (MoM ) 0.6% ,0.2% forecast, 0.2% previous
•USCPI (MoM) 0.6% ,0.3% 0.7% previous
•US Core CPI (YoY) 1.6.%,1.1 % forecast,1.2% previous
Looking ahead Economic Data(GMT)
•13:30 Seevol Cushing Storage Report 0.607M previous
•US Gasoline Inventories-0.674Mforecast , 0.419M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US FOMC Member Rosengren Speaks
Fxbeat
EUR/USD: The euro gained on Wednesday as U.S.-China tensions and uncertainty over the U.S. stimulus package weighed on dollar.The declines came as political gridlock between the Republican White House and congressional Democrats over coronavirus relief continued for a fourth day, with each party blaming the other for intransigence.Barring a bipartisan deal, the U.S. economy could be left with measures U.S. President Donald Trump called for on Saturday through executive orders to bypass Congress. Immediate resistance can be seen at 1.1777 (5DMA), an upside break can trigger rise towards 1.1803 (38.2% fib.On the downside, immediate support is seen at 1.1700 (50% fib), a break below could take the pair towards 1.1670 (Lower BB).
GBP/USD: Sterling declined against dollar on Wednesday as data showed Britain’s economy shrank sharply, fuelling coronavirus-led slowdown fears. The economy shrank by 20.4% between April and June, when the country’s coronavirus lockdown was tightest, data showed on Wednesday, representing the largest contraction reported by any major economy so far. The currency gained towards $1.3066, the, but later slipped to $1.3013, down 0.25% on the day. Immediate resistance can be seen at 1.3062 (5 DMA), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2968 (38.2%Fib), a break below could take the pair towards 1.2906 (21DMA).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as political wrangling over a stimulus package for the U.S. economy increased demand for Swiss franc. Investors are watching for signs a political impasse in Washington over a further rescue package for the pandemic-hit economy can be overcome.The dollar, which has held above a two-year low hit last Thursday of 92.495, was down 0.2% against a basket of currencies at 93.525, after shedding gains made in Asian trading. Immediate resistance can be seen at 0.9179 (50%fib), an upside break can trigger rise towards 0.9227 (21DMA).On the downside, immediate support is seen at 0.9121 (38.2%fib), a break below could take the pair towards 0.9054(23.6% fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investors were unnerved by a political deadlock over a new economic stimulus package in the United States. The dollar extended a bounce from last Friday against a basket of currencies as U.S.-China tensions ratcheted higher following President Donald Trump’s ban on U.S. transactions with the Chna-based owners of video-sharing app TikTok and messaging app WeChat. U.S. inflation figures due at 1230 GMT are expected to show consumer price growth has drifted down to 1.1% on a year-on-year basis, from 1.2% in June.Immediate resistance can be seen at 107.00 (Daily high), an upside break can trigger rise towards 107.56 (38.2%fib).On the downside, immediate support is seen at 106.30 (50 %fib), a break below could take the pair towards 106.17 (5DMA).
Equities Recap
Telecoms stocks boosted European bourses on Wednesday following Liberty Global’s takeover offer for Sunrise Communications, while London’s FTSE 100 gained on bets of domestic stimulus after a collapse in quarterly economic output.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.36 percent, Germany's Dax was down by 0.03 percent, France’s CAC finished was up by 0.49 percent.
Commodities Recap
Gold rebounded in volatile trade on Wednesday, jumping above $1,900 after its steepest sell-off in seven years, as data showed Britain’s economy shrank by a record 20.4% between April and June, fuelling coronavirus-led slowdown fears.
Spot gold, which had its steepest sell-off in more than seven years on Tuesday, gained as much as 2% and by 0943 GMT rose 0.9% to $1,929.09 per ounce, erasing sharp losses from earlier in the Asian session.
U.S. gold futures fell 0.3% to $1,941.50 per ounce, while silver also rose, gaining 3.3% to $25.61 per ounce, after slumping 15% on Tuesday.
Oil prices rose on Wednesday after an industry report showed U.S. crude inventories last week fell more than analysts had expected, bolstering hopes that fuel demand in the world’s biggest economy can weather the coronavirus pandemic.
Brent crude was up 67 cents, or 1.5%, at $45.17 a barrel by 1012 GMT, after falling around 1% on Tuesday.
West Texas Intermediate oil was up 65 cents, or 1.6%, at $42.26 a barrel, having dropped 0.8% in the previous session.
