|   Market Roundups


  |   Market Roundups


America’s Roundup: Dollar decline continues as investors parse economic data, earnings, Wall Street advances, Gold firms, Oil slips on surge in COVID-19 infections, U.S.-China tension-July 14th,2020

Market Roundup

• French 3-Month BTF Auction-0.555%,-0.551% previous

• French 6-Month BTF Auction-0.552%,-0.557% previous

• French 12-Month BTF Auction -0.557%,-0.559% previous

• US 6-Month Bill Auction 0.145%,0.165% previous

• US 3-Month Bill Auction 0.145%,0.150% previous           

• US June Federal Budget Balance  -864.0B, -863.0B forecast, -399.0B previous   

Looking Ahead - Economic Data (GMT)

• 22:45 New Zealand May Permanent/Long-Term Migration  220 previous            

• 22:45 New Zealand May External Migration & Visitors -99.40% previous

• 01:30 Australia June NAB Business Confidence  -20 previous

• 01:30 Australia June NAB Business Survey  -24 previous

• 04:30 Japan May Industrial Production (MoM)  -8.4% forecast, -8.4% previous

• 04:30 Japan May Capacity Utilization (MoM) -13.3% previous

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro gained against dollar on Monday as investor’s awaited European Union summit at the end of the week. Investors hope the EU 27 will make progress in agreeing a 750 billion euro ($848.78 billion) COVID-19 recovery fund. Markets have moved in support of the fund, most of which has been proposed as grants to the worst-hit states such as Italy, sending that country’s debt rallying in recent weeks. Immediate resistance can be seen at 1.1333 (Higher BB), an upside break can trigger rise towards 1.1369 (July 9th high).On the downside, immediate support is seen at 1.1300 (23.6% fib), a break below could take the pair towards 1.1262 (21 DMA).

GBP/USD:  Sterling declined against dollar on Monday as Britain’s exit from the European Union weighed on investors sentiment. Britain is urging businesses and individuals to prepare for the Dec. 31 end of the Brexit transition period with an information campaign. Britain left the EU on Jan. 31, three and a half years after a referendum, but a transition period has delayed any major change in the relationship.  Immediate resistance can be seen at 1.2668 (Higher BB), an upside break can trigger rise towards 1.2800(Psychological level).On the downside, immediate support is seen at 1.2578 (38.2% fib), a break below could take the pair towards 1.2438 (21 DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday ahead of an interest rate decision this week from the Bank of Canada. World shares were approaching a five-month peak as investors wagered the earnings season would see most companies beat forecasts given expectations had been lowered by coronavirus lockdowns. Canada runs a current account deficit and is a major exporter of commodities, so the loonie tends to sensitive to the global flow of trade and capital. Immediate resistance can be seen at 1.3616 (38.2% fib), an upside break can trigger rise towards 1.3674 (Higher BB).On the downside, immediate support is seen at 1.3543 (Daily low), a break below could take the pair towards 1.3495 (Lower BB).

USD/JPY: The dollar gained against the Japanese yen on Monday as worries over increasing coronavirus cases around the world supported greenback. More than 12.83 million people have been reported to be infected by the novel coronavirus globally and 565,626​ have died. Florida reported a record increase of more than 15,000 new cases in 24 hours on Sunday, as the Trump administration renewed its push for schools to reopen and anti-mask protests were planned in Michigan and Missouri. Strong resistance can be seen at 107.23 (50% fib), an upside break can trigger rise towards 107.84 (Higher BB).On the downside, immediate support is seen at 106.60 (Lower BB), a break below could take the pair towards 106.25  (38.2 %fib ).

Equities Recap

European shares rose on Monday as progress on a possible COVID-19 vaccine, some upbeat earnings reports and stimulus talks fed into hopes of an economic recovery from the coronavirus-induced downturn.

UK's benchmark FTSE 100 closed up by 1.33% percent, Germany's Dax ended up by 1.32% percent, France’s CAC finished the day up by 1.73 percent.                        

Wall Street’s main indexes rose on Monday with the Nasdaq at a fresh intraday record high as investors cheered signs of progress in COVID-19 vaccine development and an upbeat start to the second-quarter earnings season by Pepsi.

Dow Jones closed up  by  0.04% percent, S&P 500 closed up by 0.94 % percent, Nasdaq settled down  by 2.13%  percent.

Treasuries Recap

Long-dated U.S. Treasury yields pared an early increase on Monday as stocks came off their highs, though analysts expect investors to keep putting on bets that the U.S. yield curve will steepen.

Benchmark 10-year note yields were last up less than one basis point at 0.637%, after falling to a three-month low of 0.569% on Friday. The yield curve between two-year and 10-year notes flattened one basis point to 48 basis points.

Commodities Recap

Gold prices firmed above the key $1,800 an ounce level on Monday, supported by uncertainty over the impact of surging coronavirus cases and a subdued dollar.

Spot gold rose 0.5% to $1,808.01 per ounce by 1128 GMT. U.S. gold futures were up 0.7% at $1,814.70.

Oil prices slipped about 1% on Monday after global coronavirus cases rose by a record daily amount, fanning fears of renewed government lockdowns, and on growing U.S. and European tension with China.

Brent futures fell 52 cents, or 1.2%, to settle at $42.72 a barrel, while U.S. West Texas Intermediate (WTI) crude lost 45 cents, or 1.1%, to settle at $40.10.

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