Market Roundup
• US June Real Earnings (MoM) -2.3%, 0.5% previous
• US June CPI Index, s.a 257.21, 255.77 previous
• US June CPI, n.s.a (MoM) 0.55%,-0.67% previous
• US June Core CPI Index 266.07, 265.44 previous
• US June Core CPI (MoM) 0.2%, 0.1% forecast,-0.1% previous
• US June CPI (YoY) 0.6%, 0.6% forecast, 0.1% previous
• US June CPI Index, n.s.a. 257.80, 257.73 forecast, 256.39 previous
• US June CPI (MoM) 0.6%, 0.5% forecast, -0.1% previous
• US June Core CPI (YoY) 1.2%, 1.1% forecast, 1.2% previous
• US Redbook (MoM) 3.0%,-0.6% previous
• US Redbook (YoY) -5.5%, -6.9% previous
• US June Cleveland CPI (MoM) 0.1%, 0.3% previous
Looking Ahead - Economic events and other releases (GMT)
• 22:45 New Zealand Visitor Arrivals (MoM) -98.9% previous
•23:00 Japan Jul Reuters Tankan Index -46 previous
• 00:00 Australia HIA New Home Sales (MoM) -4.2% previous
• 00:00 Australia Jul Westpac Consumer Sentiment 6.3% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro strengthened against dollar on Tuesday as investors focused on the European Central Bank meeting on Thursday and EU summit at the end of the week, at which leaders will discuss the proposed EU-wide recovery fund. German Chancellor Angela Merkel said on Monday she could not guarantee that EU member states would reach an agreement on the 750 billion euro coronavirus recovery fund and a multi-year budget at the summit this week. Immediate resistance can be seen at 1.1411 (Daily high), an upside break can trigger rise towards 1.1421 (June 10th high).On the downside, immediate support is seen at 1.1324 (5 DMA), a break below could take the pair towards 1.1262 (21 DMA).
GBP/USD: Sterling declined against dollar on Tuesday after new data showed Britain’s economy was recovering more slowly than forecast. Gross domestic product rose by 1.8% in May after falling by a record 20.8% in April, the Office for National Statistics. Adding to fears was a warning from authorities that another, more deadly COVID-19 wave could kill up to 120,000 Britons over the winter. The pound fell 0.33% to $1.2510 versus the dollar and traded 0.4%. Immediate resistance can be seen at 1.2569 (38.2% fib), an upside break can trigger rise towards 1.2656 (Higher BB).On the downside, immediate support is seen at 1.2470 (Daily low), a break below could take the pair towards 1.2369 (50% fib).
USD/CAD: The Canadian dollar weakened to a two-week low against the greenback on Tuesday as efforts to curb rising coronavirus cases in the U.S. and Asia weighed on investor sentiment and ahead of a Bank of Canada interest rate announcement on Wednesday. U.S. crude prices were down 1.8% at $39.38 a barrel, while the Canadian dollar was trading 0.1% lower at 1.3621 to the greenback. Immediate resistance can be seen at 1.3671 (Higher BB), an upside break can trigger rise towards 1.3750 (38.2 % fib).On the downside, immediate support is seen at 1.3584 (5 DMA), a break below could take the pair towards 1.3461 (Lower BB).
USD/JPY: The dollar rose against the Japanese yen Tuesday as currency traders were unfazed by diplomatic tensions between the United States and China and rising coronavirus cases. A resurgence of novel coronavirus infections has caused some areas to place new restrictions on business activity, injecting some caution into the multi-month stock market rally that is betting on a rapid economic recovery. Strong resistance can be seen at 107. 50 (50% fib), an upside break can trigger rise towards 107.87 (Higher BB).On the downside, immediate support is seen at 106.80 (13th June low), a break below could take the pair towards 106.54 (38.2% fib).
Equities Recap
European stocks opened lower on Tuesday, hit by a drop overnight on Wall Street following a flare-up in U.S.-China tensions and new coronavirus restrictions.
UK's benchmark FTSE 100 closed up by 0.06 percent, Germany's Dax ended down by 0.80 percent, France’s CAC finished the day down by 0.97 percent.
U.S. stock index futures rose on Tuesday as a better-than-expected profit from JPMorgan lifted the mood in the first batch of quarterly reports from big banks bracing for a wave of coronavirus-driven loan defaults.
Dow Jones closed was trading up by 1.81%percent, S&P 500 was last up by 0.82% percent, Nasdaq was up by 0.15%% percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday after data showed that core inflation remained well under the Fed’s target and as stocks opened lower.
Benchmark 10-year yields fell three basis points to 0.609%. The yield curve between two-year and 10-year notes flattened one basis point to 45 basis points.
Commodities Recap
Gold prices firmed above the key $1,800 level on Tuesday, underpinned by concerns over mounting coronavirus cases globally as many regions reintroduced curbs to restrict the outbreak.
Spot gold gained 0.4% to $1,809.83 per ounce by 2:25 pm EDT (1825 GMT). U.S. gold futures settled mostly unchanged at $1,813.40.
Oil prices rose slightly on Tuesday as OPEC and its allies cut production by more than agreed to in June, although demand concerns lingered due to increased cases of COVID-19 in the United States.
Brent crude futures were up 35 cents to $43.07 a barrel at 11:54 a.m. EST (1554 GMT), after moving lower earlier in the session. U.S. West Texas Intermediate (WTI) crude futures rose 34 cents to $40.44 a barrel.
