Market Roundup
- Oil prices rise on demand recovery hopes
- Gold ticks higher amid virus fears
Economic Data Ahead
- (0400 ET/0800 GMT) EZ Current Account n.s.a(Apr)
- (0400 ET/0800 GMT) EZ Current Account s.a(Apr)
Key Events Ahead
- (0400 ET/0800 GMT) EU Summit
FX Beat
DXY: The dollar index eased from a 2-week peak as a resurgence in coronavirus cases offset confidence in a rapid economic recovery. The greenback against a basket of currencies traded 0.1 percent down at 97.38, having touched a high of 97.58 on Thursday, its highest since June 4.
EUR/USD: The euro rose, halting a 3-day losing streak, as investors awaited a European Union summit beginning later in the day, where bloc leaders are trying to navigate regional divisions to deliver a 750 billion euro coronavirus recovery fund. The European currency traded 0.1 percent up at 1.1250, having touched a low of 1.1185 on Thursday, its lowest since June 3. Investors’ attention will remain on a series of data from Eurozone economies, and EZ current account, ahead of U.S. current account, Fed Quarles speech and Fed Chair Powell's speech. Immediate resistance is located at 1.1257 (5-DMA), a break above targets 1.1288 (10-DMA). On the downside, support is seen at 1.1174 (21-DMA), a break below could drag it below 1.1154.
USD/JPY: The dollar declined, extending losses for the fourth straight session, weighed down by geopolitical tensions on the Korean peninsula, in the Himalayas and between China and its trading partners. On Thursday, U.S. President Donald Trump renewed his threat to cut ties with China, a day after the first high-level talks between the countries in months. The major was trading 0.1 percent down at 106.81, having hit a low of 106.66 on Thursday, its lowest since June 12. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. current account, Fed Quarles speech and Fed Chair Powell's speech. Immediate resistance is located at 107.27, a break above targets 107.64. On the downside, support is seen at 106.58, a break below could take it near at 105.99.
GBP/USD: Sterling nudged up after tumbling to a 2-1/2 week low below the 1.2500 handle in the prior session on Bank of England's decision to increase its bond-buying programme by 100 billion pounds ($125 billion) to bolster the coronavirus-hit economy. The major traded 0.2 percent up at 1.2443, having hit a low of 1.2401 on Thursday, it’s lowest since June 1. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2484 (21-DMA), a break above could take it near 1.2538 (5-DAM). On the downside, support is seen at 1.2377, a break below targets 1.2344. Against the euro, the pound was trading 0.1 percent up at 90.09 pence, having hit a low of 90.41 on Thursday, it’s highest since May 29.
AUD/USD: The Australian dollar consolidated within narrow ranges as investors kept a wary eye on Australian trade ties, amid growing relation strains with China, over the handling of the coronavirus outbreak. The Aussie trades 0.1 percent up at 0.6860, having hit a low of 0.6776 on Monday, it’s lowest since June 2. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6902, a break above could take it near 0.6921 (10-DMA). On the downside, support is seen at 0.6808 (21-DMA), a break below targets 0.6776.
Equities Recap
Asian shares nudged lower as lingering concerns about a second pandemic wave offset growing hopes for a quick economic recovery.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.06 percent.
Tokyo's Nikkei surged 0.6 percent to 22,484.22 points, Australia's S&P/ASX 200 index gained 0.2 percent to 5,946.80 points. South Korea's KOSPI tumbled 0.05 percent to 2,132.23 points.
Shanghai composite index rose 0.9 percent to 2,965.94 points, while CSI 300 index traded 1.4 percent up at 4,100.82 points.
Hong Kong’s Hang Seng traded 0.7 percent higher at 24,651.00 points. Taiwan shares added 0.05 percent to 11,549.86 points.
Commodities Recap
Crude oil prices rallied to a near 2-week peak after OPEC producers and allies promised to meet their supply cut commitments, while two major oil traders said demand was recovering well. International benchmark Brent crude was trading 0.8 percent higher at $41.81 per barrel by 0455 GMT, having hit a high of $42.01 earlier, its highest since June 8. U.S. West Texas Intermediate was trading 0.8 percent up at $39.14 a barrel, after rising as high as $39.47 earlier, its highest since June 10.
Gold prices surged, supported by concerns over a second wave of coronavirus infections, although a stronger U.S. dollar limited gains. Spot gold was trading 0.2 percent at $1,726.76 per ounce by 0505 GMT, having touched a high of $1,744.91 last week, its highest since June 2. The metal has fallen 0.3 percent so far this week. U.S. gold futures rose 0.2 percent to $1,733.90.
Treasuries Recap
The benchmark 10-year U.S. Treasury notes fell in price to yield to 0.7068 percent, from 0.694 percent late on Thursday.
