Market Roundup
• U.S. retail sales surge in May
• US May Retail Control (MoM) 11.0%, 4.7%,-15.3% previous
• US May Retail Sales (YoY) -6.10%, -21.61% previous
• US May Core Retail Sales (MoM) 12.4%, 5.5% forecast,-17.2% previous
• US May Retail Sales (MoM) 17.7%, 8.0% forecast, -16.4% previous
• US May Retail Sales Ex Gas/Autos (MoM) 12.4%, -16.2% previous
• Canada April Foreign Securities Purchases by Canadians-0.13B, -42.24B previous
• Canada April Foreign Securities Purchases 49.00B, -9.78B previous
• US Redbook (YoY) -2.4%,-9.7% previous
• US Redbook (MoM) -8.3%, -3.2% previous
• US May Industrial Production (YoY) 1.4%, 2.9%, -11.2% previous
• US May Manufacturing Production (MoM) 3.8%,4.6% forecast, -13.7% previous
• US May Capacity Utilization Rate 66.9% forecast, 64.9% previous
• US May Industrial Production (MoM) -15.27% , 15.04% previous
• US April Business Inventories (MoM) -1.3%, -0.8% forecast, -0.2% previous
• US Jun NAHB Housing Market Index 58, 45 forecast, 37 previous
• US April Retail Inventories Ex Auto -1.1%, -1.1% previous
• New Zealand Global Dairy Trade Price Index 1.9%,0.1% previous
Looking Ahead Economic Data(GMT)
• 22:45 New Zealand Current Account (YoY) (Q1) -8.47B forecast, -9.23B previous
• 22:45 New Zealand Current Account % of GDP (Q1) -2.70% forecast, -3.00% previous
• 22:45 New Zealand Current Account (QoQ) (Q1) 1.48B forecast, -2.66B previous
•23:00 Japan June Reuters Tankan Index -44 previous
•23:00 Japan May Imports (YoY) -12.9%,-7.1% previous
•23:00 Japan May Exports (YoY) -22.7%,-21.9% previous
•23:00 Japan May Trade Balance -560.0B, -930.4B previous
•23:00 Japan Adjusted Trade Balance-0.16T forecast , -1.00T previous
•00:00 Australia HIA New Home Sales (MoM) -23.2% previous
•00:30 Australia MI Leading Index (MoM) -1.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currenices summaries
EUR/USD: The euro declined against dollar on Tuesday after a record increase in U.S. retail sales in May, reinforcing a growing belief that the worst may be over for the world's largest economy. Tuesday's data showed U.S. retail sales jumped 17.7% last month, the biggest rise since the government started tracking the series in 1992. Data for April was revised to show a record 14.7% drop in sales instead of the previously reported 16.2%. The dollar index was up 0.3% at 96.822.The euro dropped 0.4% against the dollar to $1.1282. Immediate resistance can be seen at 1.1338 (June 13h high), an upside break can trigger rise towards 1.1444 (Higher BB).On the downside, immediate support is seen at 1.1296 (23.6% fib), a break below could take the pair towards 1.1244 (14 DMA).
GBP/USD: The pound edged lower against greenback on Tuesday as the greenback strengthened after the United States reported a record increase in retail sales in May after two straight months of declines. The dollar further extended gains after Federal Reserve Chair Jerome Powell painted a bleak picture of the U.S. economy in the wake of the coronavirus pandemic. That bolstered the dollar’s safe-haven appeal.In the first of two-day hearings, Powell said there is significant uncertainty about the timing and strength of the U.S. recovery. Immediate resistance can be seen at 1.2630 (11 DMA), an upside break can trigger rise towards 1.2781 (23.6%fib).On the downside, immediate support is seen at 1.2518 (38.2%fib), a break below could take the pair towards 1.2446 (21DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors cheered the potential for new U.S. infrastructure spending and domestic data showed record demand for Canadian securities in April. Foreign investors bought a record C$49.04 billion in Canadian securities in April, all in debt securities, following a revised C$9.82 billion total sale in March, Statistics Canada said. The Canadian dollar was trading 0.2% higher at 1.3540 to the greenback. The currency, which on Monday hit a two-week low at 1.3685, traded in a range of 1.3504 to 1.3597. Immediate resistance can be seen at 1.3676 (Higher BB), an upside break can trigger rise towards 1.3765 (30 DMA).On the downside, immediate support is seen at 1.3542 (5 DMA), a break below could take the pair towards 1.3500 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday after a record increase in U.S. retail sales boosted dollar across the board. Tuesday’s data showed U.S. retail sales jumping 7.7% last month, the biggest rise since the government started tracking the series in 1992.Data for April was revised to show a record 14.7% drop in sales instead of the previously reported 16.2%. Economists polled had forecast retail sales would rise 8% in May. Strong resistance can be seen at 107.56 (30DMA), an upside break can trigger rise towards 100.05(38.2% fib).On the downside, immediate support is seen at 106.71 (50% fib), a break below could take the pair towards 106.43(Lower BB).
Equities Recap
European shares joined a global rally on Tuesday as the prospect of historic monetary and fiscal stimulus revived hopes of an economic rebound from the COVID-19 pandemic.
The UK's benchmark FTSE 100 closed up by 2.94 percent. Germany's Dax ended up by 3.39 percent, and France’s CAC finished the up by 2.84 percent.
Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected, five months into its pandemic-inflicted recession.
Dow Jones closed up by 2.04 percent, S&P 500 ended up 1.90 percent, Nasdaq finished the day up by 1.75 percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday as hopes of further U.S government stimulus boosted risk appetite, and after data showed that American retail sales had a record rise in May.
Benchmark 10-year note yields gained seven basis points to 0.768%. They remain below an 11-week high of 0.959% on June 5, when data showed that employers unexpectedly added jobs in May.
Commodities Recap
Oil prices rose 3% in volatile trade on Tuesday as Wall Street surged and the International Energy Agency (IEA) increased its oil demand forecast for 2020, but gains were capped by worries about a second wave of coronavirus cases.
Brent crude futures ended the session up $1.24, or 3.1%, at $40.96 a barrel while U.S. West Texas Intermediate crude (WTI) rose $1.26, or 3.4% to settle at $38.38 a barrel.
Gold edged up in seesaw trade on Tuesday as concerns over a fresh coronavirus outbreak in China countered pressure from a surge in Wall Street driven by a record rise in U.S. retail sales and optimism over a COVID-19 drug.
Spot gold rose 0.2% to $1,727.86 per ounce by 11:18 a.m. ET (1518 GMT). U.S. gold futures gained 0.5% to $1,736.20 per ounce.
