Market Roundup
• Canada June Participation Rate 63.8%, 61.4% previous
• Canada June Employment Change 952.9K, 700.0K forecast, 289.6K previous
• Canada June Unemployment Rate 12.3%, 12.0% forecast, 13.7% previous
• US June Core PPI (MoM) -0.3%,0.1% forecast,-0.1% previous
• US June PPI (YoY) -0.8% -0.2%,-0.8% previous
• US June Core PPI (YoY) 0.1%, 0.4% forecast, 0.3% previous
• US June PPI (MoM) -0.2%, 0.4% forecast, 0.4% previous
• Canada June Part Time Employment Change 464.8K, 70.3K previous
• Canada June Full Employment Change 488.1K, 219.4K previous
• Brazilian June IPCA Inflation Index SA (MoM) 0.31%, -0.36% previous
• Brazilian June CPI (MoM) 2.13%, 0.29% forecast,-0.38% previous
• Russia May Trade Balance 3.67B, 5.50B forecast, 6.24B previous
• Brazilian June CPI (YoY ) 0.26%,2.16% forecast, 1.88% previous
• U.S. Baker Hughes Oil Rig Count 258,185 previous
Looking Ahead – Economic data ahead
• No data ahead
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro declined against dollar on Friday as investor mood soured as global markets reacted to the end of China's stock market rally and a surge in coronavirus cases in the United States. Investors in Europe have also been in a 'wait and see' mood for days ahead of next week's ECB meeting and the EU summit about the Commission's proposed recovery fund. Immediate resistance can be seen at 1.1300 (23.6% fib), an upside break can trigger rise towards 1.1336 (Higher BB).On the downside, immediate support is seen at 1.1254 (Daily low), a break below could take the pair towards 1.1200 (Psychological level).
GBP/USD: Sterling was little changed against the dollar on Friday as investors mostly stayed on the sidelines as negotiations between Britain and the European Union on a trade deal. This leaves sterling traders unsure how to approach the pound and the currency driven mostly by external factors. Britain is also facing challenges to reviving its economy, badly hit by the coronavirus. Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody’s said on Friday. Immediate resistance can be seen at 1.2663 (Higher BB), an upside break can trigger rise towards 1.2700 (Psychological level).On the downside, immediate support is seen at 1.2574 (38.2% fib), a break below could take the pair towards 1.2476 (21 DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday as investors weighed a record domestic jobs gain and rising U.S. coronavirus cases, with the loonie recovering from an earlier 10-day low. Canada’s economy added 952,900 jobs in June, mostly in the service sector, as firms reopened following closures triggered by COVID-19, data from Statistics Canada showed. Economists had expected an increase of 700,000. The loonie was trading nearly unchanged at 1.3580 to the greenback, or 73.64 U.S. cents, having touched its weakest intraday level since June 30 at 1.3631. The currency was on track to weaken 0.3% for the week. Immediate resistance can be seen at 1.3633 (38.2%), an upside break can trigger rise towards 1.3667 (Higher BB).On the downside, immediate support is seen at 1.3562 (5 DMA), a break below could take the pair towards 1.3492 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Friday as dollars safe-haven allure diminished, on hopes of a potential vaccine for the novel coronavirus that outweighed concerns about the surge in infections in the United States and around the world. The U.S. currency posted its largest weekly percentage loss against a basket of major currencies in a month. The dollar also slid after U.S. producer prices unexpectedly fell 0.2% in June, following a 0.4% rebound in May, as the economy battles depressed demand amid the COVID-19 pandemic. Strong resistance can be seen at 107.18 (50% fib), an upside break can trigger rise towards 107.83 (Higher BB).On the downside, immediate support is seen at 106.60 (Lower BB ), a break below could take the pair towards 106.10 (38.2% fib).
Equities Recap
European shares rose on Friday after upbeat industrial output data from Italy and France raised hopes of an economic recovery, even as a spike in coronavirus cases around the world kept gains in check.
UK's benchmark FTSE 100 closed up by 0.76 percent, Germany's Dax ended up by 1.15 percent, France’s CAC finished the day up by 1.01 percent.
The S&P 500 and the Dow advanced on Friday as a positive update from Gilead’s antiviral drug to treat COVID-19 countered nerves over a record rise in coronavirus cases in the United States that threatens to damage Corporate America.
Dow Jones closed ended up by 1.44 percent, S&P 500 closed up by 1.05 percent, Nasdaq was up by 0.66 % percent.
Treasuries Recap
Longer-term U.S. Treasury yields rebounded on Friday, following Wall Street higher as optimism about an antiviral drug to treat COVID-19 countered worries about the economic fallout from a record rise in coronavirus cases in the United States.
The yield on the benchmark 10-year U.S. Treasury note rose 2.8 basis points to 0.6332%, after dipping as low as 0.569% earlier in the session - its lowest level since April 22.
Commodities Recap
Gold prices on Friday were set to mark a fifth straight weekly gain, hovering above the key $1,800 level as a record surge in U.S. COVID-19 infections bolstered the metal’s safe-haven appeal.
Spot gold prices were little changed at $1,802.26 per ounce by 10:58 a.m. EDT (1458 GMT), and were up about 1.5% for the week, having soared to their highest since Sept. 2011 at $1,817.71 on Wednesday. U.S. gold futures rose 0.3% to $1,809.50 per ounce.
Oil prices climbed more than 2% on Friday after the International Energy Agency (IEA) bumped up its 2020 demand forecast but record-breaking new coronavirus cases in the United States tempered expectations for a fast recovery in fuel consumption.
Brent crude settled up 89 cents, or 2%, at $43.24 a barrel and U.S. oil settled up 93 cents, or 2.4%, at $40.55 a barrel.
