Market Roundup
• Canada May Core Retail Sales (MoM) 10.6%,12.0% forecast,-22.0% previous
• Canada May Retail Sales (MoM) 18.7% , 20.0% forecast, -26.4% previous
• Canada June New Housing Price Index (MoM) 0.1%, 0.1% forecast, 0.1% previous
• US June Chicago Fed National Activity 4.11, 2.61 previous
• US Redbook (MoM) 1.9%,3.0% previous
• US Redbook (YoY) -7.5%,-5.5% previous
• New Zealand GlobalDairyTrade Price Index -0.7%,8.3% previous
Looking Ahead Economic Data
• 00:30 Japan Jul Manufacturing PMI 40.1 previous
• 00:30 Australia MI Leading Index (MoM) 0.2% previous
• 00:30 Japan Services PMI 45.0 previous
• 01:30 Australia Retail Sales (MoM) 16.9% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro on Tuesday climbed to its highest against the U.S. dollar since January last year, after European Union countries struck an agreement on a massive stimulus plan to revive their coronavirus-battered economies. The EU deal - a compromise on concerns that thrifty northern states had about handouts for more their more profligate neighbors was hailed as an important signal of unity by Europe's leaders and a foundation for economic recovery. The euro rose 0.6% to $1.1510, after earlier hitting $1.1516,, the highest level since Jan. 11, 2019 last year. Immediate resistance can be seen at 1.1540 (Daily high), an upside break can trigger rise towards 1.1600 (Psychological level).On the downside, immediate support is seen at 1.1433 (5 DMA), a break below could take the pair towards 1.1369 (23.6% fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as optimism over a coronavirus vaccine and an EU agreement on a crucial recovery fund boosted sterling. The currency had enjoyed its best day in three-weeks on Monday, lifted by the generally buoyant market mood which allowed investors to overlook poor British economic data and lack of concrete progress on Brexit trade talks. The currency rose as high as $1.2716, the highest since June 11, but later slipped to $1.2681, up 0.2% on the day. Immediate resistance can be seen at 1.2721 (Higher BB), an upside break can trigger rise towards 1.2800 (Psychological level).On the downside, immediate support is seen at 1.2651 (Daily low), a break below could take the pair towards 1.2602 (38.2 % fib).
USD/CAD: The Canadian dollar strengthened to a more than five-week high against its U.S. counterpart on Tuesday, helped by a rise in oil prices on positive news about vaccine trials and a European Union stimulus deal as well as data showing a rebound in retail sales. Canadian retail sales increased by a record 18.7% in May from April to C$41.79 billion ($31.06 billion), as higher sales at motor vehicle and parts dealers led the rebound, Statistics Canada said on Tuesday. The Canadian dollar was at C$1.3459 to the greenback. Immediate resistance can be seen at 1.3536 (5 DMA), an upside break can trigger rise towards 1.3596 (38.2% fib).On the downside, immediate support is seen at 1.3428 (23.6% fib), a break below could take the pair towards 1.3400 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen Tuesday as surging number of coronavirus cases kept demand for safe haven yen. European Union leaders appear close to an agreement on a massive stimulus plan for the bloc as the summit drags beyond a fourth day. EU Council President Charles Michel said he was confident the compromises he offered the 27 leaders would clinch a deal on a fund that many say is critical to dispel doubts about the bloc’s very future. Strong resistance can be seen at 107.48 (50% fib), an upside break can trigger rise towards 107.79 (50% fib).On the downside, immediate support is seen at 107.14 (5 DMA), a break below could take the pair towards 106.80 (Lower BB).
Equities Recap
European stock index futures rose on Tuesday after European Union leaders reached a “historic” deal on a massive stimulus plan for their coronavirus-hit economies.
UK's benchmark FTSE 100 closed up by 0.50 percent, Germany's Dax ended up by 1.67 percent, France’s CAC finished the day up by 1.15 percent.
U.S. stocks advanced on Tuesday following a slate of positive earnings reports from companies including IBM and Coca-Cola, and on hopes for fiscal stimulus to prop up an economy reeling from the COVID-19 pandemic.
Dow Jones closed down by 1.06 %percent, S&P 500 closed down by 0.31% percent, Nasdaq settled up by 0.60 % percent.
Treasuries Recap
U.S. Treasury yields fell slightly on Tuesday in range-bound trading as the market watched for the next round of aid out of Washington to combat the economic fallout from the coronavirus pandemic.
The benchmark 10-year yield was last down 1.5 basis points at 0.6053%..
Commodities Recap
Gold soared to a nine-year peak on Tuesday, boosted by a dollar sell-off and expectations for increased stimulus to aid the recovery of pandemic-hit economies, while silver dashed past the $20 threshold to an over six-year high.
Spot gold rose 1.5% to $1,842.52 per ounce by 1:49 p.m. EDT (1749 GMT). It hit its highest since September 2011 and was track to post its biggest daily gain since early May.U.S. gold futures settled up 1.5% at $1,843.9.
Oil prices rose about $1 a barrel on Tuesday, hitting the highest in more than four months with a boost from a European Union stimulus deal and hopeful news about coronavirus vaccine trials.
Brent crude futures settled at $44.32 barrel, rising $1.04, or 2.4%. West Texas Intermediate (WTI) settled at $41.96 a barrel, gaining $1.15 cents, or 2.82%.
