Market Roundup
• China urges U.S. to lift sanctions on Huawei as Trump-Xi meeting looms
• Fed's Daly says it's too early to say rate cut is needed -Bloomberg TV interview
• US Q1 GDP Final, 3.1%, 3.1% forecast 3.1% previous
• US Q1 GDP Sales Final, 2.6%, 2.5% forecast 2.5% previous
• US Q1 Core PCE Prices Final, 1.2%, 1.0% forecast 1.0% previous
• US Q1 PCE Prices Final, 0.5%, 0.4% forecast 0.4% previous
• US 22 Jun, w/e Initial Jobless Claims, 227k, 220k forecast 216k previous
• US 22 Jun, w/e Jobless Claims 4-Wk Avg, 221.25k, 218.75k previous
• US May Pending Homes Index, 105.4, 104.3 previous
• US May Pending Sales Change MM, 1.1%, 1.0% forecast, -1.5% previous
• UK discovers 26 billion pounds in statistics review
[Looking Ahead - Economic Data (GMT)]
• 27 June 23:30 Japan June CPI Tokyo Ex fresh food YY, 0.9% forecast 1.1% previous
• 27 June 23:30 Japan June CPI, Overall Tokyo, 1.1% previous
• 27 June 23:30 Japan May Jobs/Applicants Ratio, 1.63 forecast, 1.63 previous
• 27 June 23:30 Japan May Unemployment Rate, 2.4% forecast, 2.4% previous
• 27 June 23:50 Japan May Industrial Output Prelim MM SA, 0.7% forecast, 0.6% previous
• 28 June 05:00 Japan May Construction Orders YY, -19.9% previous
• 28 June 01:30 Australia May Private Sector Credit, 0.2% previous
• 28 June 01:30 Australia May Housing Credit, 0.3% previous
[Looking Ahead - Events, Other Releases (GMT)]
• 07:30 Introductory remarks by ECB executive board member Sabine Lautenschlager at the third ECRB meeting organised by the ECB in Frankfurt, Germany
• 09:00 Text of the opening speech of BOE Executive Director for Markets Andrew Hauser at an event titled 'Promoting Career Opportunities for Women in Foreign Exchange,' to be released in London
Currency Summaries
EUR/USD: The euro was little changed against dollar on Thursday, as traders moved to the sidelines in advance of this weekend's G20 summit where China and the United States may reach a truce on their trade conflict.The world's two largest economies have agreed to a tentative truce in their trade dispute, Hong Kong's South China Morning Post cited sources as saying. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet on Saturday. The report eased fears that Trump would impose additional tariffs on $300 billion on Chinese goods, but financial markets remain on edge about the trade talks.The euro was up 0.18 percent at $1.1306, erasing an earlier loss tied partly to weak regional growth data. An index that tracks the dollar versus a basket of six major currencies was down 0.45 at 96.867 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1417 (HIgher Bollinger Bands), an upside break can trigger rise towards 1.1443 (March 20th high).On the downside, immediate support is seen at 1.1341 (June 27th low), a break below could take the pair towards 1.1300 (Psychological level).
GBP/USD:The pound declined against dollar on Thursday, as traders unwound some of their long bets against the British currency before a Group of 20 meeting this weekend, where U.S. President Donald Trump and Chinese President Xi Jinping might agree to a trade truce. Risky assets including the pound were generally sold and perceived safe-haven currencies such as the Japanese yen and the Swiss franc were in demand. Against the dollar, the pound edged 0.12% lower at $1.2668 while against the euro, the pound was broadly steady at 89.48 pence. Immediate resistance can be seen at 1.2795 (10 DMA), an upside break can trigger rise towards 1.2850 (61.8% retracement level).On the downside, immediate support is seen at 1.2630 (23.6% retracement level), a break below could take the pair towards 1.2600 (Psychological level).
USD/CAD: The Canadian dollar strengthened slightly against its U.S. counterpart on Thursday, approaching a near five-month high posted the day before, as investors weighed the prospect of progress in a trade dispute between the United States and China. Canada is a major exporter of commodities, including oil, so its economy could benefit from reduced uncertainty for global trade. U.S. crude oil 1 prices were little changed at $59.37 a barrel, constrained by perceptions that supply is ample despite prospects for continued OPEC curbs. At (1337 GMT), the Canadian dollar was trading 0.1% higher at 1.3113 to the greenback, or 76.26 U.S. cents. The currency, which on Wednesday touched its strongest since Feb. 5 at 1.3108, traded in a narrow range of 1.3111 to. Immediate resistance can be seen at 1.3144 (38.2% retracement level), an upside break can trigger rise towards 1.3204 (50% retracement level).On the downside, immediate support is seen at 1.3075 (23.6% retracement level), a break below could take the pair towards 1.3000 ( Psychological level).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday, as some of the jitters ahead of the G20 summit in Japan eased amid hopes for progress there in resolving the Sino-U.S. trade war. Hong Kong's South China Morning Post, citing sources, said that the United States and China have agreed to a tentative truce in their trade dispute ahead of a meeting between leaders of the two nations on Saturday on the sidelines of the G20 summit. Investors are focusing on whether U.S. President Donald Trump and Chinese President Xi Jinping, at their Osaka meeting, can pave the way to resolve a trade dispute between the world's two biggest economies. The dollar was little changed versus the Japanese yen at 107.78. Strong resistance can be seen at 107.78. (Psychological level), an upside break can trigger rise towards 114.54 (Oct 3rd high).On the downside, immediate support is seen at 107.33 (23.6 % retracement level), a break below could take the pair towards 107:00 (Psychological level).
Equities Recap
European shares handed back gains to close flat on Thursday after comments from the White House undid optimism over a potential Sino-U.S. trade deal, while a strong rally in shares of chemicals giant Bayer propped up German equities.
UK's benchmark FTSE 100 closed down by 0.2 percent, the pan-European FTSEurofirst 300 ended the day up by 0.01 percent, Germany's Dax ended up by 0.2 percent, France’s CAC finished the day down by 0.1 percent.
The S&P 500 and the Nasdaq closed higher after a broad-based rally on Thursday as investors looked to the G20 summit in Osaka, Japan this weekend for progress in the long-running U.S.-China trade dispute, which has whipsawed markets for months.
Dow Jones closed up by 0.04 percent, S&P 500 ended up 0.39 percent, Nasdaq finished the day up by 0.73 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday on concerns that trade discussions between the United States and China on Saturday may be more complicated than previously expected, boosting demand for safe-haven debt.
Commodities Recap
Oil prices edged higher on Thursday on expectations that OPEC will extend an output cut agreement, while investors awaited a meeting between the United States and China that could produce a breakthrough on trade talks.
Brent crude futures rose 6 cents to settle at $66.55 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 5 cents to settle at $59.43 a barrel.
Gold steadied on Thursday as investors looked for further cues from trade talks between the United States and China, which bolstered risk appetite and lifted the dollar, but the metal held on to support around the key $1,400 per ounce pivot.
Spot gold edged 0.1% lower to $1,407.71 per ounce as of 1:37 p.m. EDT(1737 GMT), having briefly dipped below $1,400 earlier in the session. U .S. gold futures settled 0.2% lower at $1,412 per ounce.
