Market Roundup
• U.S. jobless claims fall, producer prices rise
• US Jobless Claims 4-Week Avg 2,002.00K, 2,284.00K previous
• US Continuing Jobless Claims 20,929K, 20,000K forecast, 21,487K previous
• US Initial Jobless Claims 1,542K, 1,550K forecast , 1,877K previous
• US Core PPI (YoY) 0.3%,0.4%, 0.6% previous
• US May Core PPI (MoM) -0.1%, -0.1% forecast,-0.3% previous
• US May PPI (YoY) -1.2% forecast, -1.2% previous
• US May PPI (MoM) 0.1% forecast, -1.3% previous
• Russia April Trade Balance 6.24B, 5.76B forecast, 9.31B previous-0.8%
• Russia Central Bank reserves (USD) 565.2B,563.9B previous
• US Natural Gas Storage 93B forecast, 102B previous
Looking Ahead – Economic Data (GMT)
• 21:00 New Zealand Westpac Consumer Sentiment 104.2 previous
•21:30 New Zealand May Business NZ PMI 26.1 previous
•21:30 New Zealand FPI (MoM) 1.0% previous
• Japan Industrial Production (MoM) -9.1% forecast,-9.1% previous
• Japan April Capacity Utilization (MoM) -3.6%-3.6%
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies summaries
EUR/USD: The euro dipped against dollar on Thursday as the U.S. Federal Reserve’s dour economic outlook spooked investors. The moves recouped the greenback’s initial losses after the Fed’s policy stance, projecting rates near zero for years, was welcomed as a sign of its continued support for asset prices. The euro which hit a three month peak overnight put up the best fight against dollar, sliding only 0.27%. Immediate resistance can be seen at 1.1358 (Daily high), an upside break can trigger rise towards 1.1420 (Higher BB).On the downside, immediate support is seen at 1.1324 (5 DMA), a break below could take the pair towards 1.1250 (9 DMA).
GBP/USD: The pound fell against the dollar on Thursday as stronger dollar and Brexit weighed on pound. The pound had risen 3.9% against the dollar in 10 consecutive days of gains starting on May 28 its longest winning streak since January 2018. But this trajectory looked set to end on Thursday, as the pound changed course and fell back below $1.27. The pound fell as much as 0.9% against dollar on the day to $1.2634 at 1349 GMT, having risen to a three-month high above $1.28 on Wednesday. By 1500 GMT it was down 0.8% at $1.2643.Immediate resistance can be seen at 1.2778 (5 DMA), an upside break can trigger rise towards 1.2816 (Higher BB).On the downside, immediate support is seen at 1.2586 (9 DMA), a break below could take the pair towards 1.2509 (38.2% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as investors re-evaluated prospects of the global economy recovering quickly from the coronavirus crisis. The price of oil, one of Canada's major exports, was also pressured by the Fed's gloomy projections as well as another record buildup in U.S. crude inventories. U.S. crude prices were down 6.6% at $36.97 a barrel.The Canadian dollar was trading 0.6% lower at 1.3496 to the greenback Immediate resistance can be seen at 1.3697 (9DMA), an upside break can trigger rise towards 1.3733 (38.2% fib).On the downside, immediate support is seen at 1.3377 (5 DMA), a break below could take the pair towards 1.3332 (9 DMA).
USD/JPY: The dollar declined against the Japanese yen on Thursday amid diminished expectations that the global economy would recover swiftly from the coronavirus pandemic. Investors were also worried about new coronavirus infections as the world gradually reopened following shutdowns aimed at curbing the spread of the disease. In early late US trading, the dollar fell 0.3% against the yen to 106.86 yen, after earlier dropping to a one-month trough. Strong resistance can be seen at 107.50 (30 DMA), an upside break can trigger rise towards 108.07 (38.2% fin).On the downside, immediate support is seen at 106.73 (50% fib), a break below could take the pair towards 106.50 (Lower BB).
Equities Recap
European shares suffered their worst day in more than 11 weeks on Thursday after a sobering economic outlook from the U.S. Federal Reserve and worries of a second wave of COVID-19 cases.
UK's benchmark FTSE 100 closed down by 3.99 percent, Germany's Dax ended down by 4.75 percent, France’s CAC finished the day up by 4.77 percent.
Wall Street plummeted on Thursday as investors reacted to renewed fears of a pandemic resurgence and digested dour economic forecasts from the U.S. Federal Reserve.
Dow Jones closed ended down by 6.90 percent, S&P 500 was ended by 5.89 percent, Nasdaq finished the day own by 5.27 % percent.
Treasuries Recap
U.S. Treasury yields continued their downward trajectory on Thursday amid uncertainty over whether the Federal Reserve would turn to yield curve control in the coming months, while the prospect of negative interest rates seeped back into the market.
The benchmark 10-year yield was last down 9 basis points at 0.6576%. The 30-year yield was last down 11.5 basis points at 1.4046%.
Commodities Recap
Gold prices rose on Thursday supported by the U.S. Federal Reserve’s grim economic outlook and commitment to continue injecting support, while stock markets slipped on fears of a second wave of coronavirus infections.
Spot gold rose 0.3% to $1,740.97 per ounce by 10:24 a.m. ET (1424 GMT), having hit its highest since June 2 at $1,742.71 earlier in the session. U.S. gold futures climbed 1.8% to $1,751.20.
Oil prices tumbled about 8% a barrel on Thursday, fuelled by renewed concerns about demand destruction as new cases of coronavirus tick up globally, while crude inventories hit a record in the United States.
Brent crude futures fell $3.18, or 7.6%, to settle at $38.55 a barrel. U.S. West Texas Intermediate (WTI) crude fell $3.26, or 8.2%, to settle at $36.34 a barrel. Brent and WTI posted their worst daily drops since April 21 and 27, respectively.
