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America’s Roundup: Dollar dips against euro as month-end flows weigh, Wall Street ends up, Gold gains 1%,Oil surges 5% on U.S.-China trade optimism, falling crude output-May 30th,2020

Market Roundup

• Dollar drops to more than two-month low

• Gold up more than 2% this month

• Canada GDP (YoY) (Q1) -0.91%, 1.47% previous

• Canada GDP Annualized (QoQ) (Q1) -8.2%m-10.0% forecast, 0.3% previous

• Canada GDP (QoQ) (Q1) -2.1%    ,0.1% previous

• Canada GDP Implicit Price (QoQ) (Q1) 0.50%, 0.30% forecast, 1.00% previous  
   
• Canada IPPI (YoY)  -6.0%, -2.4% previous

• Canada April IPPI (MoM) -2.3%, -1.7%  forecast, -0.9%  previous

• US April Personal Income (MoM) 10.5%, -6.5%  forecast, -2.0%  previous

• US April Personal Spending (MoM) -13.6%,  -12.6% forecast, -7.5% previous

• US April Real Personal Consumption (MoM) -13.2%, -7.3% previous

• US April PCE price index (MoM) -0.5%, -0.3% previous

• US April PCE Price index (YoY) 0.5, 1.3 previous

• US April Core PCE Price Index (MoM) -0.4% ,-0.3% forecast, -0.1% previous

• US April  Core PCE Price Index (YoY) 1.0%,  1.1% forecast, 1.7% previous

• US April Goods Trade Balance-69.68B, -64.38B previous

• Canada March GDP (MoM) -7.2%,  -9.0% forecast, 0.0% previous

• US Wholesale Inventories (MoM) 0.4%,-0.8% previous

• Brazil April Debt-to-GDP ratio 52.7%, 52.4% forecast, 51.7% previous

• Brazil April Budget Balance -115.800B, -120.100B forecast, -79.700B previous

• Brazil April Budget Surplus -94.300B, -118.600B forecast, -23.650B  previous

•US May Chicago PMI 32.3,  40.0 forecast, 35.4 previous

•US May Michigan Current Conditions 82.3, 83.0 forecast, 74.3 previous

• US May  Michigan 5-Year Inflation Expectations 2.70%, 2.50% previous

• US May Michigan Inflation Expectations 3.2%,  3.0%  forecast, 2.1% previous

• US May Michigan Consumer Sentiment 72.3,  74.0 forecast, 71.8 previous  
     
• US Michigan Consumer Expectations  65.9,67.7 forecast, 70.1 previous    
        
• Canada March Budget Balance -14.79B ,3.58B previous    

• Canada March Budget Balance (YoY) -21.77B, -6.98B previous    
 
• US April Dallas Fed PCE 1.40%, 1.10% previous        

 Looking Ahead Economic Data

• No economic data ahead

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro extended its gains against dollar on Friday as the common currency continued to enjoy a boost from the European Union’s recently announced plan to prop up the bloc’s coronavirus-hit economies with a 750 billion-euro ($828 billion) recovery fund. The euro was 0.32% higher at $1.1102, on pace for its fourth straight day of gains. The euro’s rally this week has pushed it over its 200-day moving average for the first time since late March and lifted it about 2% for the week, its best weekly gain in nine weeks. Immediate resistance can be seen at 1.1166 (61.8% fib), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1060 (50 % fib), a break below could take the pair towards 1.0983(11 DMA).

GBP/USD: Sterling gained against dollar on Friday as dollar weakened the United States outlined its response to China's security law on Hong Kong, but were up for the month on optimism about major economies emerging from coronavirus lockdowns. U.S. President Donald Trump said he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China's plans to impose new security legislation in the territory. An escalation in U.S.-China trade tensions has the capacity to further weigh on the global economy, which is already in dire straits due to the novel coronavirus pandemic. Immediate resistance can be seen at 1.2369 (Daily high), an upside break can trigger rise towards 1.2459 (Higher BB).On the downside, immediate support is seen at 1.2319 (50% fib), a break below could take the pair towards 1.2235 (11 DMA).

USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Friday as data showed a deep slump in the domestic economy in the first quarter, with the loonie pulling back from an earlier two-and-a-half-month high. Canada’s GDP fell at an annualized rate of 8.2% in the first quarter as a result of reduced spending and widespread shutdowns of non-essential businesses in March due to the coronavirus pandemic, Statistics Canada said. In a flash estimate, Canada's national statistics agency projected an 11% decline for GDP in April from March. Immediate resistance can be seen at 1.3433 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3377 (5 DMA), a break below could take the pair towards 1.3332 (9 DMA).

USD/JPY: The dollar declined against the Japanese yen on Friday as raising tensions between China and US increased demand for Japanese yen. U.S. President Donald Trump said on Friday he was directing his administration to begin the process of eliminating special treatment for Hong Kong, in response to China’s plans to impose new security legislation in the territory. Escalating U.S.-China tension has prompted investors to seek refuge in yen, which is widely viewed as a safe-haven investment during times of political and financial uncertainty. Strong resistance can be seen at 107.90 (38.2% fib), an upside break can trigger rise towards 108.38 (Higher BB).On the downside, immediate support is seen at 106.61 (50% fib), a break below could take the pair towards 105.91 (Lower BB).

Equities Recap

European shares dipped on Friday as investors awaited Washington’s response to China’s national security law on Hong Kong amid rising tensions between the world’s two biggest economies.

UK's benchmark FTSE 100 closed up by 2.29 percent, Germany's Dax ended down  by 1.65 percent, France’s CAC finished the day down by 1.59 percent.

U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared.

Dow Jones closed down by  0.07% percent, S&P 500 closed down by 0.48% percent, Nasdaq settled up by 1.29%  percent.

Treasuries Recap

U.S. Treasury yields dipped on Friday as concerns about escalating tensions between the United States and China weighed on risk sentiment.

Benchmark 10-year yields fell four basis points to 0.669%. The two-year 10-year yield curve flattened to 50 basis points, from 52 basis points.

Commodities Recap

Oil prices soared on Friday, with U.S. futures closing out May with record monthly gains, on hopes that the U.S.-China trade deal would remain intact and on falling crude production.

West Texas Intermediate crude futures  for July delivery settled at $35.49 a barrel, jumping $1.78, or 5.3%.

July Brent crude  closed at $35.33 a barrel, gaining 4 cents. However, the more active August  contract ended at $37.84, rising $1.81, or roughly 5%.

Gold rose 1% on Friday as caution set in with investors awaiting U.S. President Donald Trump’s response to a Chinese national security law for Hong Kong and its potential impact on an already fragile global economy.

Spot gold climbed 0.9% to $1,734.60 per ounce by 12:42 p.m. EDT (1642 GMT).U.S. gold futures rose 1.3% to $1,750.20.
 

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