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America’s Roundup: Dollar gains on fears of new pandemic wave, Wall Street ends mixed,Gold slips, Oil edges up on OPEC output cut compliance; pandemic still weighs-June 19th,2020

Market Roundup

• US Weekly jobless claims higher than expected

• US Continuing Jobless Claims 20,544K,19,800K forecast, 20,929K previous

• US Initial Jobless Claims1,508K,1,300K forecast, 1,542K previous

•   Canada May New Housing Price Index (MoM)  0.1%,0.0% previous

•   Canada ADP Nonfarm Employment Change 208.4K, -226.7K previous

•   Canada April Wholesale Sales (MoM) -21.6%, -12.6% forecast, -2.2% previous

•   US June Philly Fed CAPEX Index 26.30               , -21.6%,15.20 previous

•   US Philly Fed Employment -4.3, -15.3 previous

•   US June Philadelphia Fed Manufacturing Index  -23.0 forecast, -43.1 previous

•   US June Philly Fed New Orders  -25.7 previous

•   US June Philly Fed Business Conditions  49.7 previous

•   US June Philly Fed Prices Paid   11.10,  3.20 previous

•   US Jobless Claims 4-Week Avg 1,773.50K,  2,002.00K previous

• 13:00 Russia Central Bank reserves (USD) 570.8B,565.2B previous

•  US May Leading Index (MoM) 2.8%,   2.3% forecast, -4.4% previous

Looking Ahead Economic Data (GMT)

• 23:30 Japan May CPI, n.s.a (MoM)  -0.1% previous

• 23:30 Japan May National Core CPI (YoY)  -0.1% forecast, -0.2% previous

• 23:30 Japan May National CPI (YoY)  0.1% previous

• 01:30 Australia Retail Sales (MoM) -17.7% previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currencies summaries

EUR/USD: The euro declined on Thursday as dollar gained after U.S. data showed that a recovery in the labor market. The number of Americans filing for unemployment benefits fell last week, but the pace of decline appears to have stalled amid a second wave of layoffs as companies battle weak demand and fractured supply chains, supporting views that the economy faces a long and difficult recovery from the COVID-19 recession. Immediate resistance can be seen at 1.1242(5 DMA), an upside break can trigger rise towards 1.1291(23.6% fib).On the downside, immediate support is seen at 1.1179 (June18th low), a break below could take the pair towards 1.1164 (38.2% fib).

GBP/USD: Sterling declined against the dollar on Thursday after the Bank of England increasing its bond-buying by 100 billion pounds ($125 billion) to bolster the coronavirus-hit economy.The central bank, which also kept its benchmark interest rate at 0.1%, said it expects a new total of 745 billion pounds in government bond purchase to be hit by the end of the year. By22:20 GMT the pound was 0.5% down against the dollar at $1.2421. Immediate resistance can be seen at 1.2517 (38.2% fib),an upside break can trigger rise towards 1.2610 (11 DMA).On the downside, immediate support is seen at 1.2318 (50% fib), a break below could take the pair towards 1.2206 (Lower BB).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday as investors worried about a potential second wave of the coronavirus pandemic and after domestic data showed a record plunge in wholesale trade for the month of April. Canadian wholesale trade fell 21.6% in April from March, led by a decline in sales in the motor vehicles and motor vehicle parts and accessories subsector as a result of shutdowns related to the coronavirus outbreak. Immediate resistance can be seen at 1.3684 (38.2% fib), an upside break can trigger rise towards 1.3792 (50%fib).On the downside, immediate support is seen at 1.3549 (23.6%fib), a break below could take the pair towards 1.3511 (11 DMA).

USD/JPY: The dollar dipped against the Japanese yen Thursday as concerns about a rise in new coronavirus cases increased demand for safe-haven yen. A surge in new coronavirus infections in several U.S. states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder of the risks of re-opening economic activity before a vaccine has been developed. The Japanese yen was last 0.32% stronger at 106.66 , the highest since June 12, and close to the one-month high of 106.58 it rose to last week. Strong resistance can be seen at 107.57 (30 DMA), an upside break can trigger rise towards 108.02 (38.2% fib).On the downside, immediate support is seen at 106.67 (50% fib ), a break below could take the pair towards 106.00(Psychological level).

Equities Recap

European shares closed lower on Thursday as a spike in COVID-19 cases in China and some U.S. states triggered fears of a second wave of infections, while a 60% plunge in Wirecard shares over missing cash balances weighed on the STOXX 600 index.

UK's benchmark FTSE 100 closed down by  0.47 percent, Germany's Dax ended down by 0.81 percent, France’s CAC finished the day down by 0.75 percent.                

Wall Street struggled for direction on Thursday as investors weighed a resurgence in coronavirus infections and the possibility of a new round of shutdowns against data that suggested the U.S. economy might not bounce back with quick, V-shaped recovery.

Dow Jones closed down by  0.15% percent, S&P 500 closed up by 0.06 % percent, Nasdaq settled up by 0.33%  percent.

Treasuries Recap

U.S. Treasury yields fell on Thursday after cases of the novel coronavirus rose in several U.S. states, deepening concerns that the economy may not bounce back as quickly as hoped.

Benchmark 10-year Treasury yields edged lower in afternoon trading, last down nearly four basis points at 0.694%.

Commodities Recap

Gold eased on Thursday after data showed lower jobless claims in the United States and on reports Beijing was bringing its latest coronavirus outbreak under control, but mounting infections globally limited losses for the safe-haven metal.

Spot gold fell 0.2% to $1,723.23 per ounce by 12:30 p.m. ET (1630 GMT). U.S. gold futures shed 0.3% at $1,730.10.

Oil prices rose slightly on Thursday as a panel of OPEC and its allies met to review record oil supply cuts, even as the market remained concerned about additional coronavirus cases reported in parts of the United States and China.

Brent crude  futures settled at $41.51 a barrel, up 80 cents or nearly 2%. U.S. West Texas Intermediate (WTI) crude  futures settled at $38.84 a barrel, up 88 cents, or 2.3%.

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