Market Roundup
• U.S. stocks bounce back, but on track for worst week in 3 months
• Gold on track for biggest weekly gain since April
• US Import Price Index (YoY) -6.0%,6.8% previous
• US Export Price Index (YoY) 0.5% -3.3%% previous
• US May Export Price Index (MoM) 0.5% ,0.6% forecast, -3.3%- previous
• US May Import Price Index (MoM) 1.0%-,0.6% forecast, -2.6% previous
• Canada Capacity Utilization Rate (Q1) 79.8%,80.0% forecast, 81.2% previous
• UK NIESR GDP Estimate -17.6%,-11.8% previous
• US June Michigan Consumer Expectations 73.1,70.0 forecast, 65.9 previous
• US June Michigan Consumer Sentiment 78.9 , 75.0 forecast, 72.3 previous
• US June Michigan Current Conditions 87.8, 85.0 forecast, 82.3 previous
• US June Michigan 5-Year Inflation Expectations 2.60%, 2.70% previous
• US U.S. Baker Hughes Total Rig Count 279,284 previous
Looking Ahead – Economic Data (GMT)
•No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro declined against the U.S. dollar on Friday as investors took in stride the U.S. Federal Reserve’s outlook for a long road to recovery and bet shutdowns to fight the coronavirus pandemic were unlikely to be reinstated widely. Going into next week, investors are bracing for a number of key events, including discussions on the European Union recovery fund, Brexit negotiations, Bank of England and Swedish National Bank meetings. Federal Reserve Chair Jerome Powell’s semi-annual testimony to the Senate banking committee is also scheduled next week. Immediate resistance can be seen at 1.1253 (21 DMA), an upside break can trigger rise towards 1.1290 (23.6% fib).On the downside, immediate support is seen at 1.1205 (14 DMA), a break below could take the pair towards 1.1165 (38.2% fib)
GBP/USD: The pound shed early gains against a weaker dollar on Friday to be 0.6% lower on the day as a combination of stronger appetite for risk, unprecedentedly weak economic data and Brexit concerns weighed on the British currency.The pound had a poor week, slipping back after it had risen 3.9% against the dollar in 10 consecutive days of gains.It recovered against the dollar on Friday, touching $1.2653 in earlier trade, before falling 0.6% on the day to $1.2528. Immediate resistance can be seen at 1.2673 (5 DMA), an upside break can trigger rise towards 1.2773(23.6% fib).On the downside, immediate support is seen at 1.2523 (38.2% fib), a break below could take the pair towards 1.2419 (21 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday along with a rebound in Wall Street stocks, but a sharp decline a day earlier left the loonie with a weekly loss, ending a three-week winning streak. The Canadian dollar was trading 0.2% higher on the day at 1.3595 to the greenback, or 73.56 U.S. cents. The currency traded in a range of 1.3527 to 1.3666. The loonie was down 1.3% for the week, after climbing for each of the previous three weeks. On Wednesday, it reached its strongest level in more than three months at 1.3311. Immediate resistance can be seen at 1.3706 (21 DMA), an upside break can trigger rise towards 1.3687(38.2%fib).On the downside, immediate support is seen at 1.3540 (23.6% fib), a break below could take the pair towards 1.3339 (June 11th low).
USD/JPY: The U.S. dollar rose against the safe-haven Japanese yen on Friday as stocks on Wall Street rallied from their worst one-day performance in three months. Hopes of a post-COVID global recovery, the easing of U.S.-China trade tensions and the prospect of capped long-term yields in the United States had weighed on the dollar, pushing it lower against most major currencies, before it strengthened. The dollar rose 0.6% against the yen to 107.455 yen. The dollar still posted its worst weekly performance against the yen since late March. Strong resistance can be seen at 107.54 (5 DMA), an upside break can trigger rise towards 108.11 (38.2 % fib).On the downside, immediate support is seen at 106.76 (50% fib), a break below could take the pair towards 106.50 (Lower BB).
Equities Recap
European shares closed slightly up on Friday after heavy losses in the previous session, but marked their worst week since the peak of the coronavirus sell-off due to persistent concerns over the pace of an economic recovery.
UK's benchmark FTSE 100 closed up by 0.47 percent, Germany's Dax ended down by 0.18 percent, France’s CAC finished the day up by 0.49 percent.
U.S. stocks were higher in late afternoon trading on Friday but had bounced between losses and gains as bargain hunting following a sharp losses a day earlier was offset by continued worries about the economy.
Dow Jones closed up by 1.90 percent, S&P 500 ended up by 1.31 percent, Nasdaq was up by 1.01 % percent.
Treasuries Recap
U.S. Treasury yields rose on Friday as stocks clawed back some ground from Thursday's biggest one-day drop in about three months.
The benchmark 10-year yield was last up 3.9 basis points at 0.6919%.
Commodities Recap
Gold prices gained on Friday as investors bought the safe-haven metal as fears of a fresh wave of coronavirus cases added to the gloomy economic outlook from the U.S. Federal Reserve.
Spot gold rose 0.3% to $1,732.72 per ounce by 12:57 p.m. ET (1657 GMT) and has jumped about 3% so far this week, heading for its biggest gain since the week of April 10.U.S. gold futures were up 0.1% at $1,740.90.
Oil was little changed on Friday and logged a first weekly decline since April as new U.S. coronavirus cases spiked, stoking fears of a second wave of the virus hitting fuel demand.
Brent settled at $38.73 a barrel, up 18 cents, while West Texas Intermediate settled at $36.26 a barrel, down 8 cents.
