Market Roundup
•UK May PPI Output (YoY) -1.4%,-0.9% forecast, -0.7% previous
•UK May Core PPI Output (YoY) 0.6%, 0.6% forecast, 0.6% previous
•UK Core PPI Output (MoM) 0.0%,-0.1% forecast, -0.1% previous
•UK May PPI Input (YoY) -10.0%,-6.0% forecast, -9.8% previous
•UK May PPI Input (MoM) 0.3%,4.5% forecast, -5.1% previous
•UK May RPI (MoM) -0.1%, 0.1% forecast, -0.2% previous
•UK May RPI (YoY) 1.0% , 1.2% forecast, 1.5% previous
•UK May CPI (YoY) 0.5%,0.5% forecast, 0.8% previous
•UK May Core RPI (MoM) 0.0%,0.2% previous
•UK May CPI (MoM) 0.0%, -0.1% forecast, -0.2% previous
• UK May CPI, n.s.a 108.50, 108.50 previous
• UK May Core RPI (YoY) 1.3%, 1.6% previous
• UK May Core CPI (YoY) 1.2%,1.3% forecast, 1.4% previous
•Italian May Car Registration (MoM) 2,230.2%,-84.9% previous
•Italian May Car Registration (YoY) -49.6% ,-97.6% previous
• UK May PPI Output (MoM) -0.3%,0.1% forecast, -0.7% previous
•German May Car Registration (MoM) 39.1%,-43.8% previous
•German Ma y Car Registration (YoY) -49.5%, -61.1% previous
•UK May Car Registration (MoM) 368.6%,-98.3% previous
•Italian May Industrial New Orders (YoY) -49.0%,-26.6% previous
•Italian April Industrial Sales (YoY) -46.90%,-25.20% previous
• EU May Core CPI (MoM) 0.0% , 0.8% forecast, 0.8% previous
• EU May Core CPI (YoY) 0.9%,0.9% forecast, 0.9% previous
• EU May CPI (YoY) 0.1%,0.1% forecast, 0.1% previous
• EU April Construction Output (MoM) -14.58%,-14.15% previous
• US MBA Mortgage Applications (WoW) 8.0%,9.3% previous
• US MBA 30-Year Mortgage Rate 3.30%,3.38% previous
• US Mortgage Market Index 846.9, 784.5 previous
Looking Ahead Economic Data (GMT)
• 12:30 Canada May Core CPI (MoM) -0.4% previous
• 12:30 Canada May Core CPI (YoY) 1.2% previous
• 12:30 US May Housing Starts (MoM) -30.2% previous
• 12:30 Canada May CPI (YoY) -0.1%,-0.2% previous
• 12:30 US May Building Permits 1.228M forecast, 1.066M previous
• 12:30 US Building Permits (MoM) -21.4% previous
• 12:30 US May Housing Starts 1.095M, 0.891M previous
• 12:30 Canada May CPI (MoM) 0.7% forecast, -0.7% previous
• 12:30 Canada Common CPI (YoY) 1.6% previous
• 12:30 Canada Median CPI (YoY) 2.0% previous
• 12:30 Canada Trimmed CPI (YoY) 1.8% previous
• 13:00 Russia GDP Quarterly (YoY) (Q4) 1.6%,2.1% previous
• 14:30 US Crude Oil Inventories-0.152M, 5.720M previous
Looking Ahead - Events, Other Releases (GMT)
• 16:00 US Fed Chair Powell Testifies
• 20:00 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro declined on Wednesday as dollar held firm against many of its rivals on Wednesday after U.S. retail sales jumped far more than expected in May. Tuesday’s data showed U.S. retail sales jumping 17.7% last month, outstripping economists’ median forecast of 8.0% increase. The surge in retail sales last month recouped 63% of March and April’s decreases, raising hopes of a quick recovery in the consumption, the driver of the U.S. economy. Immediate resistance can be seen at 1.1291 (23.6% fib), an upside break can trigger rise towards 1.1360 (June 16th high).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1164 (38.2% fib).
GBP/USD: Sterling declined against dollar on Wednesday after data showed inflation fell to its lowest level since June 2016 last month as the coronavirus pandemic sucked demand from the global economy and caused oil prices to tumble. Low inflation would give the Bank of England space to ramp up its stimulus programme again when its policymakers meet on Thursday. The British central bank is expected to announce a fresh increase of at least 100 billion pounds ($125.71 billion) in its bond-buying firepower. Sterling was last trading down 0.2% versus the U.S. dollar at $1.2564.Immediate resistance can be seen at 1.2634 (300 DMA),an upside break can trigger rise towards 1.2775(23.6% fib).On the downside, immediate support is seen at 1.2533 (38.2% fib), a break below could take the pair towards 1.2467 (21 DMA).
USD/CHF: The dollar edged lower against the Swiss franc on Wednesday as a resurgence of global coronavirus cases challenged market confidence in a rapid economic recovery, even as the rebound in U.S. retail sales in May broke all records.New infections have hit record highs in six U.S. states and Beijing cut flights and closed schools to contain a fresh outbreak in the Chinese capital. Immediate resistance can be seen at 0.9533 (50% fib), an upside break can trigger rise towards 0.9571 (21 DMA).On the downside, immediate support is seen at 0.9447 (38.2% fib), a break below could take the pair towards 0.9410 (Lower BB).
USD/JPY: The dollar rose against the Japanese yen Wednesday as record rebound in U.S. retail sales, fresh support from the Federal Reserve and Bank of Japan, and upbeat trial results for a COVID-19 treatment boosted risk appetite. U.S. retail sales jumped the most on record in May, offering new evidence the recession triggered by the coronavirus pandemic might be drawing to an end, while trial results showed dexamethasone reduced death rates by about one-third among the most severely ill COVID-19 patients. Strong resistance can be seen at 107.87 (38.2% fib), an upside break can trigger rise towards 108.02 (38.2% fib).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares rose on Wednesday, as signs of more U.S. stimulus and hopes that the global economy can bounce back from an appalling April offset fears of further lockdowns due to a new outbreak in China.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.76 percent, Germany's Dax was up by 0.81 percent, France’s CAC finished was up by 1.78 percent.
Commodities Recap
Gold prices fell on Wednesday, pressured by a stronger dollar and as optimism over a potential COVID-19 drug and economic recovery dented demand for bullion and supported riskier assets.
Spot gold was down 0.7% at $1,715.27 an ounce by 1026 GMT and U.S. gold futures fell 0.9% to $1,721.40.
Oil rose on Wednesday on hopes for economic recovery and for a clinical trial showing a cheap steroid could help save some critically ill coronavirus patients but fears of a second wave of the virus curbed gains.
Brent crude was up 29 cents, or 0.7%, at $41.25 a barrel at 0825 GMT. U.S. West Texas Intermediate (WTI) rose 17 cents, or 0.4%, to $38.55 a barrel.
Treasuries Recap
Government bond yields in the euro area edged up on Wednesday, ahead of a 5 billion euro ($5.64 billion) sale of new 10-year bonds from benchmark issuer Germany.
Germany’s benchmark 10-year Bund yield edged up to -0.41% , holding above three-week lows hit on Monday at -0.47%. Italy’s 10-year bond yield was 1.5 bps higher on the day at 1.38%.
