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

Market Roundup

• Price of U.S. oil increases 4%

•  US April Chicago Fed National Activity -16.74,-4.19 previous    

•  US House Price Index (MoM) 1.1%,0.7% previous    

• US March S&P/CS HPI Composite - 20 s.a. (MoM) 0.5% ,0.2% forecast ,0.4% previous

• Russia April Unemployment Rate 5.8%, 5.5% forecast , 4.7% previous

• US March House Price Index (YoY) 5.9%, 5.7% previous     

• Russia April Retail Sales (YoY)  -23.4%,-15.0%  forecast, 5.6% previous

• Russia March Russian Real Wage Growth (YoY)  5.9%,-7.0% forecast, 5.7% previous

• US May CB Consumer Confidence 86.6, 88.0 forecast, 86.9 previous

• US April New Home Sales  623K, 490K forecast, 627K previous

• US New Home Sales (MoM) 0.6%,  -21.9% forecast, -15.4% previous

• US May Dallas Fed Mfg Business Index -49.2, -73.7 previous

Looking Ahead Economic Data

• 01:30 Chinese April Industrial profit YTD  -36.7% previous

• 01:30 Australia Construction Work Done (QoQ) (Q1)  -1.5% forecast, -3.0% previous

Looking Ahead - Events, Other Releases (GMT)

•21:00   New Zealand RBNZ Financial Stability Report

• 21:00 Canada BoC Gov Poloz Speaks

• 21:00 Canada BoC Gov Council Member Wilkins Speaks

• 23:00 New Zealand RBNZ Gov Orr Speaks

Currency Summaries

EUR/USD: The euro edged higher   on Tuesday as  euro got a boost   from a weaker dollar as growing optimism about a global economic recovery from the COVID-19 pandemic supported riskier currencies, though Sino-U.S. tensions kept the mood in check. The euro was last up 0.6% at $1.0960, having rallied to $1.0973, its strongest since Thursday, while the dollar was down by 0.5% against a basket of currencies at 99.21. Immediate resistance can be seen at 1.0972 (23.6% fib), an upside break can trigger rise towards 1.1060 (50% fib).On the downside, immediate support is seen at 1.0877(21 DMA), a break below could take the pair towards 1.0835 (23.6% fib).

GBP/USD: Sterling rose against a weaker dollar on Tuesday after Prime Minister Boris Johnson set out plans to reopen thousands of high street shops, department stores and shopping centres next month. Johnson said at a news conference on Monday that outdoor markets and car showrooms could reopen from June 1 and all other non-essential retail from June 15 if the government’s tests are met. The pound was last at a six-day high against a weaker dollar, of $1.2265, up 0.6% Immediate resistance can be seen at 1.2336 (30 DMA), an upside break can trigger rise towards 1.2448(50% fib).On the downside, immediate support is seen at 1.2260 (38.2% fib), a break below could take the pair towards 1.2225 (5 DMA).

USD/CAD Canadian dollar edged higher against greencack as steps to reopen the world economy boosted investor sentiment. The price of oil, one of Canada's major exports, was supported by growing confidence that producers are following through on commitments to cut supplies and rising fuel demand as coronavirus lockdowns ease. U.S. crudeprices were up 4%at $34.58 a barrel.At  (1319 GMT), the Canadian dollar  was trading 1.1% higher at 1.3826 to the greenback, or 72.33.The currency touched its strongest intraday level since March 16 at 1.3817. Immediate resistance can be seen at 1.3993 (Daily high), an upside break can trigger rise towards 1.4075  (61.8% fib fib).On the downside, immediate support is seen at 1.3833 (50% fib) a break below could take the pair towards 1.3731 (38,2% fib).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as lingering trade tensions between the United States and China increased demand for yen. White House National Security Adviser Robert O’Brien warned that the proposed legislation could lead to U.S. sanctions on Hong Kong and China, and threaten the city’s status as a financial hub. Market participants are waiting for the U.S. consumer confidence report due at 1400 GMT. Strong resistance can be seen at 107.68 (38.2% fib), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.21 (30 DMA), a break below could take the pair towards 106.42 (50% Fib). 

Equities Recap

European shares closed at an 11-week high on Tuesday, with travel and leisure stocks soaring on hopes of a revival in tourism as countries gradually reopened after a months-long lockdown.

UK's benchmark FTSE 100 closed up by 1.24 percent, Germany's Dax ended down  by 1.00 percent, France’s CAC finished the day down by 1.45 percent.

The S&P 500 dipped in choppy trading on Tuesday as the top U.S. infectious disease expert warned Congress that a premature opening of the nation’s economy could lead to additional outbreaks of the novel coronavirus.

Dow Jones closed down by  2.23 % percent, S&P 500 closed down by 1.33% percent, Nasdaq settled down by 1.33% percent.

Treasuries Recap

U.S. Treasury yields rose Tuesday as improving risk appetite boosted stocks and reduced demand for safe haven U.S. bonds, and before the Treasury will sell new intermediate-dated notes.

Benchmark 10-year note yields rose four basis points to 0.695%.

Commodities Recap

Gold prices edged lower on Tuesday as hopes of economic recovery lifted share markets with many countries easing coronavirus-driven lockdowns, although Sino-U.S. tensions over Hong Kong limited bullion’s losses.

Spot gold slipped 0.1% to $1,727.63 per ounce by 1221 GMT. U.S. gold futures were down 0.5% at $1,727.50.

Oil prices rose on Tuesday, supported by signs that producers are following through on commitments to cut supplies and as fuel demand picks up with coronavirus restrictions easing.

Brent crude  futures gained 64 cents, or 1.8%, to settle at $36.17 a barrel. U.S. West Texas Intermediate (WTI) crude futures   rose $1.10, or 3.3%, to settle at $34.35 a barrel.