|   Market Roundups


  |   Market Roundups


Americas Roundup: U.S. dollar slides to two-week low,Wall Street inches up, Gold smashes through $1,800 level,Oil falls as rise in virus cases, U.S. inventories stall recovery-July 9th,2020

Market Roundup

• Brazil May Retail Sales (YoY) 13.9%, -12.1% forecast,-16.8% previous

• Brazil May Retail Sales (MoM)  -7.2%, 6.0%,-16.8% previous

 • Russia June CPI (MoM)  0.2%,0.3% forecast, 0.3% previous

• Russia June CPI (YoY) 3.2%, 3.0% forecast, 3.0% previous

• US Seevol Cushing Storage Report 1.566M, -1.637M previous

• US Gasoline Production 0.140M,0.111M previous

• US Crude Oil Inventories 5.654M,-3.114M forecast, -7.195M previous

• US May Consumer Credit -18.28B ,-15.50B forecast, -68.78B previous

Looking Ahead - Economic Data (GMT) 

• 23:50 Japan May Core Machinery Orders (YoY)  -17.1% forecast,  -17.7% previous

•23:50 Japan May Core Machinery Orders (MoM)  -5.4% forecast,  -12.0% previous

•23:50 Japan June M3 Money Supply  1,856.1T previous

• 23:50 Japan June PPI (YoY) -2.4%,-2.7% previous

•23:50 Japan Foreign Investments in Japanese Stocks -494.4B previous

• 23:50 Japan Foreign Bonds Buying174.6B previous

Looking Ahead - Economic events and other releases (GMT)

Currencies Summaries

EUR/USD: The euro edged higher on Wednesday as dollar edged lower as investors weighed hopes for a swift economic recovery against fears about a resurgence in the pandemic, particularly in the United States. The U.S. currency’s weakness comes amid criticism over the government’s response to the coronavirus pandemic and protests over racial inequality that has eroded support for President Donald Trump months before the Nov. 3 presidential election. At the same time, investors increasingly expect growth to accelerate in Europe, threatening to narrow an economic performance gap that has boosted the dollar for years.  Immediate resistance can be seen at 1.1355 (Higher BB), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1246 (11 DMA), a break below could take the pair towards 1.1183  (38.2%fib).

GBP/USD: Sterling gained against the dollar on Wednesday as sterling was unmoved by Chancellor Rishi Sunak’s announcement of his plans to revive the economy.In a speech, the British finance minister said the government would pay bonuses to employers to bring workers back to their jobs from the state’s coronavirus emergency furlough scheme. Analysts had predicted prior to the announcement that there would not be much reaction in the pound, with the market also focused on renewed Brexit talks this week. Immediate resistance can be seen at 1.2615 (Daily high), an upside break can trigger rise towards 1.2663 (Higher BB).On the downside, immediate support is seen at 1.2575 (38.2% fib), a break below could take the pair towards 1.2506  (30 DMA).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday but stuck to a narrow range as investors globally weighed the risk of stalling economic recovery from the coronavirus crisis and ahead of a fiscal snapshot" from Ottawa. Canadian Finance Minister Bill Morneau is expected this afternoon to outline the current balance sheet, with the Globe and Mail reporting that a deficit of more than C$300 billion would be forecast. The Canadian dollar was trading 0.1% higher at 1.3585 to the greenback .Immediate resistance can be seen at 1.3550 (5 DMA), an upside break can trigger rise towards 1.3626 (38.2% fib).On the downside, immediate support is seen at 1.3492 (Lower BB), a break below could take the pair towards 1.3471 (23.6% fib).

 USD/JPY: The dollar declined against the Japanese yen on Wednesday as an increase in new coronavirus cases in some parts of the world undermined prospects for a quick economic recovery. California reported more than 10,000 coronavirus cases on Tuesday, a record rise for a single day. That exceeded the number of contact tracers recently trained by the state to detect and prevent potential outbreaks. Coronavirus cases were also on the rise in the Australian state of Victoria, which led to lockdown measures being re-imposed in Melbourne, the country’s second-biggest city. Strong resistance can be seen at 107.76 (100 DMA), an upside break can trigger rise towards 108.03 (Higher BB).On the downside, immediate support is seen at 107.17(Daily low ), a break below could take the pair towards 107.00 (Psychological level).

Equities Recap

HSBC and Nokia dragged European shares lower on Wednesday as a surge in coronavirus cases appeared to threaten a recovery in the global economy, while Britain’s plan to head off an unemployment crisis cushioned a fall in London’s domestically focused stocks.

UK's benchmark FTSE 100 closed down by 0.55 percent, Germany's Dax ended down by 0.97 percent, France’s CAC finished the day down by 1.24 percent.

U.S stocks were slightly higher in choppy trading on Wednesday, supported by technology shares as early signs of an economic rebound offset concern about further lockdowns due to a jump in coronavirus cases across the country.

At GMT (19:39) Dow Jones was trading  up by 0.60 percent, S&P 500 was trading  up by 0.58 percent, Nasdaq was trading  up by 1.10 percent.

Treasuries Recap

Treasury yields were stable in trading on Wednesday morning and put the U.S. on track to keep selling debt at record low yields, analysts expect, indicating strong demand for the safe securities  despite a flood of new issuance.

The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down less than a basis point at 0.1626 % in morning trading.

Commodities Recap

Gold rallied past the technical $1,800 threshold on Wednesday, scaling its highest since September 2011, as investors bolted for safety from the novel coronavirus and central banks implemented powerful stimulus packages to cushion its economic impact.

Spot gold jumped 1% to $1,811.55 per ounce by 11:12 a.m EDT (1512 GMT). U.S. gold futures gained 0.7% to $1,822.

Oil prices inched lower on Wednesday, as rising U.S. crude inventories and an increase in U.S. coronavirus infections put the brakes on a price recovery sparked by easing lockdowns.

Brent crude futures fell 19 cents to $42.89 a barrel by 11:23 AM EDT (1523 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 23 to at $40.39 a barrel.

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.