Asia Roundup: Aussie rallies following RBA minutes, dollar gains against yen on vaccine hopes, Asian shares surge - Tuesday, May 19th, 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
America’s Roundup: Dollar dented as risk appetite ramps up, Wall Street gains, Gold eases, Oil prices rise as faith in supply cuts grows-May 27th,2020
America’s Roundup: Dollar treads water against euro, Wall Street gains, Gold dips to two-week low, Oil falls on demand concerns, U.S.-China tensions-May 28th,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
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
America’s Roundup: Dollar weak as euro rises on Franco-German proposal for recovery fund ,Wall Street dips, Gold edges higher ,Oil dips as U.S. Senate grills Fed chair, Treasury secretary –May 20th,2020
Europe Roundup: Sterling stuck near 8-week lows on talk of negative rates, Brexit, European shares gain, Gold jumps by 1%,Oil rises as lockdowns ease-May 18th,2020
America’s Roundup: Dollar struggles as rising oil prices lift commodity currencies, Wall Street jumps, Gold eases off highs, Oil jumps to two-month high on easing lockdowns, positive vaccine results-May 19th 2020
Asia Roundup: Aussie eases on Hong Kong unrest, dollar rallies against yen amid hopes of economic recovery, investors eye ECB Lagarde’s speech - Wednesday, May 27th, 2020
Europe Roundup: Euro takes a breather after four-day rising streak, European shares dips, Gold drops 1%,Oil at highest since March on lower U.S. inventories, recovering demand-May 21st 2020
Asia Roundup: Aussie set for first weekly loss in six weeks, greenback gains on stimulus optimism, Asian shares subdued - Friday, May 15th, 2020
Asia Roundup: Dollar rallies against yen on easing of coronavirus lockdowns, Asian shares rally, investors eye U.S. consumer confidence data - Tuesday, May 26th, 2020
Europe Roundup: Euro buoyed as investor sentiment improves, European shares gain,Gold eases, Oil prices climb as faith in supply cuts grows-May 26th,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 gains as lockdowns ease, greenback halts 3-day rally on dismal U.S. data, Asian shares nudge higher - Monday, May 18th, 2020
Europe Roundup: Sterling eases on growing Brexit uncertainty, euro gains as German investor morale improves, oil off highs as markets assess Saudi attack impact - Tuesday, September 17th, 2019
Economic Data Ahead
Key Events Ahead
DXY: The dollar index edged lower as the yield on the benchmark 10-year Treasury yield edged plunged 2 basis points to 1.824 percent, ahead of the Federal Open Market Committee's two-day meeting starting later in the day. The greenback against a basket of currencies traded 0.05 percent down at 98.60, having touched a low of 97.86 on Friday, its lowest since August 26.
EUR/USD: The euro surged, reversing some of its previous session losses after data showed German investor sentiment improved more than expected in September, however, the upside appears limited as the ZEW institute warned that the outlook for the German economy remained negative amid trade disputes and Brexit uncertainty. The European currency traded 0.2 percent up at 1.1022, having touched a high of 1.1084 on Thursday, its highest since August 29. Immediate resistance is located at 1.1050 (21-DMA), a break above targets 1.1116 (August 27 High). On the downside, support is seen at 1.0963 (August 30 High), a break below could drag it below 1.0925 (September 3 High).
USD/JPY: The dollar rallied to a 1-1/2 month peak as risk sentiment improved after U.S. President Donald Trump stated that he did not want to go to war, and the U.S. was still investigating if Iran was responsible for the Saudi attacks. Investors now await the Federal Reserve's policy meeting decision on Wednesday, where it is expected to cut interest rates by 0.25 percentage point. The major was trading up at 108.15, having hit a high of 108.37 earlier, its highest since August 1. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. capacity utilization, industrial production and NAHB housing market index. Immediate resistance is located at 108.53 (July 1 High), a break above targets 108.99 (July 10 High). On the downside, support is seen at 107.29 (10-DMA), a break below could take it lower at 106.71 (21-DMA).
GBP/USD: Sterling plunged towards the 1.2400 handle amid persisting uncertainty over the chances of British Prime Minister Boris Johnson securing a new Brexit deal. PM Johnson stuck to his pledge to take Britain out of the European Union by October 31, vowing not to seek an extension to the deadline. The major traded 0.2 percent down at 1.2406, having hit a high of 1.2504 on Friday, it’s highest since July 25. Investors’ attention will remain on the development surrounding Brexit, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2481 (July 23 High), a break above could take it near 1.2522 (July 24 High). On the downside, support is seen at 1.2322 (10-DMA), a break below targets 1.2251 (21-DMA). Against the euro, the pound was trading 0.4 percent down at 88.86 pence, having hit a high of 88.48 earlier, it’s highest since June 6.
USD/CHF: The Swiss franc slumped to a 1-1/2 month low ahead of the U.S. Federal Reserve’s two-day monetary policy meeting, where it is widely expected to cut interest rates. The major trades 0.2 percent up at 0.9943, having touched a high of 0.9955 earlier, it’s highest since August 1. On the higher side, near-term resistance is around 0.9975 (August 1 High) and any break above will take the pair to next level till 0.9999 (June 17 High). The near-term support is around 0.9889 (10-DMA), and any close below that level will drag it till 0.9813 (August 22 Low).
European shares tumbled as investors turned cautious after the attacks on Saudi Arabian oil facilities over the weekend heightened political tensions.
The pan-European STOXX 600 index plunged 0.2 percent at 388.60 points, while the FTSEurofirst 300 declined 0.2 percent to 1,526.98 points.
Britain's FTSE 100 trades 0.2 percent up at 7,332.77 points, while mid-cap FTSE 250 fell 0.2 to 20,016.05 points.
Germany's DAX eased 0.2 percent at 12,353.91 points; France's CAC 40 trades 0.05 percent lower at 5,602.21 points.
Crude oil prices declined following the threat of a military response to attacks on Saudi Arabian crude oil facilities that halved the kingdom’s output. International benchmark Brent crude was trading 0.4 percent lower at $67.76 per barrel by 1030 GMT, having hit a high of $69.64 on Monday, its highest since May 30. U.S. West Texas Intermediate was trading 0.1 percent down at $61.80 a barrel, after rising as high as $63.33 on Monday, its highest since May 21.
Gold prices traded flat as investors adopted a wait-and-see approach ahead of the U.S. Federal Reserve’s two-day monetary policy meeting. Spot gold held firm at $1,493.05 an ounce by 1032 GMT, having touched a low of $1,483.22 last week, its lowest since August 13. U.S. gold futures were down 0.3 percent at $1,507.
The U.S. Treasuries gained during the afternoon session ahead of the Federal Reserve’s monetary policy meeting, scheduled to be held on September 18 by 18:00GMT, where it is widely expected to cut interest rates by 25bp, although prospects for more easing further out are less clear. The yield on the benchmark 10-year Treasury yield edged plunged 2 basis points to 1.824 percent, the super-long 30-year bond yield suffered 1-1/2 basis points to 2.295 percent and the yield on the short-term 2-year too plummeted nearly 2 basis points to 1.747 percent.
The United Kingdom’s gilts rose during European trading hours, ahead of the country’s consumer price inflation (CPI) data for the month of August, scheduled to be released on September 18 by 08:30GMT and the Bank of England’s (BoE) monetary policy meeting, due to be held on the following day for further direction in the debt market. The yield on the benchmark 10-year gilts, slipped nearly 1 basis point to 0.685 percent, the 30-year yield suffered 2-1/2 basis points to 1.110 percent and the yield on the short-term 2-year remained flat at 0.516 percent.
The German bunds remained mixed during European trading session after the country’s ZEW economic sentiment improved, albeit still in contraction while investors keep a close eye on the eurozone’s consumer price inflation (CPI) for the month of August, scheduled to be released on September 18, for further direction in the debt market. The German 10-year bond yield, which move inversely to its price, hovered around -0.476 percent, the yield on 30-year note edged tad down at 0.057 percent and the yield on short-term 2-year edged 1 basis point to -0.701 percent.
The Japanese government bonds closed nearly flat ahead of the Federal Reserve and Bank of Japan’s (BoJ) monetary policy meetings, scheduled for later this week amid an otherwise muted trading session that witnessed data of little economic significance. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, edged tad up to -0.152 percent, the yield on the long-term 30-year hovered around 0.346 percent and the yield on short-term 2-year also gained slightly to -0.240 percent.
The Australian government bonds jumped during Asian trading session after the release of the Reserve Bank of Australia’s (RBA) September monetary policy meeting minutes, while investors keep a close eye on the country’s employment report for the month of August, scheduled to be released today by 01:30GMT for further direction in the debt market. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 6 basis points to 1.135 percent, the yield on the long-term 30-year bond also slumped nearly 6 basis points to 1.715 percent and the yield on short-term 2-year suffered nearly 4 basis points to 0.887 percent.