Market Roundup
• U.S. Treasury to sell $32 bln in 7-year notes
• US Continuing Jobless Claims1, 650K, 1,665K forecast, 1,665K previous
• US Initial Jobless Claims 213K, 212K forecast 210K previous
• US Jobless Claims 4-Week Avg 212.00K, 212.75K previous
• US Core PCE Prices (Q2) 1.90%, 1.70% forecast 1.10% previous
• US Corporate Profits (QoQ) (Q2) 3.7%,-3.1% previous
• US GDP (QoQ) (Q2) 2.0%,2.0% forecast, 2.0% previous
• US GDP Price Index (QoQ) (Q2) 2.6%, 2.4% forecast, 0.6% previous
• US GDP Sales (Q2) 3.0%, 3.1% forecast 3.0% previous
• US Aug Goods Trade Balance -72.83B, -77.33B forecast, -72.46B previous
• US Aug Retail Inventories Ex Auto 0.0%, 0.4% previous
• US Aug Wholesale Inventories (MoM) 0.4%,0.1% previous
• Russia Central Bank Reserves (USD) 532.6B, 531.2B previous
• US Aug Pending Home Sales (MoM) 1.6%, 0.9% forecast, -2.5% previous
• US Sep KC Fed Composite Index -2, -6 previous
Looking Ahead - Economic Data (GMT)
• 23:00 UK Sep GfK Consumer Confidence -14 forecast, -14 previous
• 23:30 Japan Sep Tokyo Core CPI (YoY) 0.6% forecast,0.7% previous
• 23:30 Japan Sep Tokyo CPI (YoY) 0.8%,0.6% previous
• 23:30 Japan Sep CPI Tokyo Ex Food and Energy (MoM) 0.6% previous
• 23:50 Japan Foreign Bonds Buying 476.0B previous
• 01:30 China Aug Industrial profit (YoY) 2.60% previous
• 01:30 China Aug Industrial profit YTD -1.7% previous
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Thursday, as upbeat US GDP data and hopes for end to trade friction between US-china lifted greenback, meanwhile political worries eased as investors largely shrugged off the Democrats’ decision to begin an impeachment inquiry into Trump.The euro was down 0.21 percent at $1.0919. An index that tracks the dollar versus a basket of six major currencies was down 0.21 at 99.22. Immediate resistance can be seen at 1.13248 (38.2% retracement level), an upside break can trigger rise towards 1.1299 (50% retracement level).On the downside, immediate support is seen at 1.1183 (23.6% retracement level), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: Sterling declined against greenback on Thursday, as investors further priced in the probability of Britain leaving the European Union without a deal in place. Most investors have been forced to recalculate their assumptions of a no-deal Brexit. If Britain leaves the EU without a transition agreement, it would revert to trading under World Trade Organization rules. Most economists think that would cause serious harm to the world's fifth-largest economy as trade with the EU would become subject to tariffs.By 1913 (GMT),the pound was trading lower at $1.2329 in the late US session, not far from the yesterday’s low of $1.2291. Immediate resistance can be seen at 1.3134 (38.2% retracement level), an upside break can trigger rise towards 1.3250 (50% retracement level).On the downside, immediate support is seen at 1.2984 (23.6% retracement level), a break below could take the pair towards 1.2900 (Psychological level).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Thursday, as domestic data showed a uptick in employee earnings, while optimism that a trade deal between the United States and China was drawing closer lifted investors sentiment. Earlier in the day, Beijing said it was in close communication with the United States and was preparing to make progress with their trade talks in October. U.S. Oil was largely flat on Thursday as impeachment inquiry into President Donald Trump weakened demand sentiment.The Canadian dollar was last trading 0.05% lower at 1.3274 to the greenback. Immediate resistance can be seen at 1.3400 (50% retracement level), an upside break can trigger rise towards 1.3470 (61.8% retracement level).On the downside, immediate support is seen at 1.3335 (38.2% retracement level), a break below could take the pair towards 1.3293 (April 3rd low).
USD/JPY: The dollar strengthened against Japanese yen on Thursday, as the greenback rose amid optimism over a trade deal between the United States and China. The potential for a trade deal between the world’s two largest economies was on investors minds after Trump told reporters on Wednesday that the United States and China were having good conversations about an agreement. Beijing confirmed on Thursday it was in talks with Washington to resolve their tariff dispute. The dollar was 0.08 higher versus the Japanese yen at 107.84. Strong resistance can be seen at 111.98 (38.2% retracement level), an upside break can trigger rise towards 112.81 (23.6% retracement level).On the downside, immediate support is seen at 111.29 (50% retracement level), a break below could take the pair towards 110.61 (61.8% retracement level).
Equities Recap
European shares rose on Thursday, as encouraging comments from China on trade with the United States came as a welcome relief to investors.
The UK's benchmark FTSE 100 closed up by 0.84 percent, Germany's Dax ended up by 0.45 percent, and France’s CAC finished the up by 0.66 percent.
Wall Street’s main indexes fell on Thursday ,after a report that the United States is unlikely to extend a waiver allowing American firms to supply China’s Huawei, added to worries over an inquiry into the impeachment of President Donald Trump.
Dow Jones closed down by 0.30 percent, S&P 500 ended down 0.21 percent, Nasdaq finished the day down by 0.58 percent.
Treasuries Recap
U.S. Treasury yields dropped on Thursday after the House Intelligence Committee released a whistle-blower complaint that accused President Donald Trump of pressing a foreign government to investigate one of his main political rivals in next year's presidential election.
The U.S. 10-year note yields fell to 1.683% from 1.732% late on Wednesday. Yields on 30-year bonds were also lower at 2.132%, from 2.1835 on Wednesday. U.S. two-year yields were down at 1.635%, from Wednesday's 1.683%.
Commodities Recap
Gold prices rose on Thursday after a nearly 2% slide in the previous session triggered buying interest for the safe-haven metal, although a strengthening U.S. dollar capped gains.
Spot gold was up 0.3% at $1,507.87 an ounce as of 1:41 p.m. EDT (1741 GMT), while U.S. gold futures settled up 0.2% at $1,515.20.
Oil was largely flat on Thursday after a Pentagon statement intensified concerns of a Middle East conflict disrupting supply, supporting prices, while new details connected to the impeachment inquiry into U.S. President Donald Trump weakened demand sentiment.
Brent crude futures settled at $62.74 a barrel, up 0.6%, or 35 cents. U.S. West Texas Intermediate (WTI) crude settled at $56.41 a barrel, down 8 cents.
