Market Roundup
- Oil prices slide as U.S. crude stockpile grow
- Gold rallies to more than 7-1/2 year high
Economic Data Ahead
- (0400 ET/0800 GMT) Germany IFO - Business Climate(Jun)
- (0400 ET/0800 GMT) Germany IFO - Current Assessment(Jun)
- (0400 ET/0800 GMT) Germany IFO - Expectations(Jun)
- (0400 ET/0800 GMT) Switzerland ZEW Survey - Expectations(Jun)
Key Events Ahead
- (0300 ET/0700 GMT) Non-Monetary Policy ECB Meeting
- (0300 ET/0700 GMT) ECB's Lane speech
FX Beat
DXY: The dollar index eased as Texas, Arizona and Nevada set records for a second week in their coronavirus outbreaks and 10 other states from Florida to California were grappling with surging infections. The greenback against a basket of currencies traded 0.1 percent down at 96.57, having touched a high of 97.74 on Monday, its highest since June 2.
EUR/USD: The euro surged, extending gains for the third straight session, as business surveys from France and Germany suggested both the economies were recovering from the depths of the COVID-19 crisis as they came out of lockdown. The European currency traded 0.1 percent up at 1.1322, having touched a low of 1.1168 on Friday, its lowest since June 3. Investors’ attention will remain on a series of data from Eurozone economies, ECB non-monetary policy meeting and ECB Lane's speech, ahead of U.S. housing price index and Fed officials' speech. Immediate resistance is located at 1.1353, a break above targets 1.1383. On the downside, support is seen at 1.1270 (10-DMA), a break below could drag it below 1.1237 (5-DMA).
USD/JPY: The dollar rebounded from a near 7-week low, as upbeat data out of Europe stoked hopes for a global economic recovery and underpinned appetite for riskier currencies. The major was trading 0.1 percent up at 106.59, having hit a low of 106.07 on Tuesday, its lowest since May 7. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. housing price index and Fed officials' speech. Immediate resistance is located at 106.84 (5-DMA), a break above targets 107.02 (10-DMA). On the downside, support is seen at 106.22, a break below could take it near at 105.99.
GBP/USD: Sterling eased after surging in the prior session on UK's better than expected PMI. The IHS Markit/CIPS flash composite Purchasing Managers’ Index, which measures activity in the services sector and manufacturing, advanced to 47.6 in June from 30.0 in May. The major traded 0.1 percent down at 1.2502, having hit a low of 1.2335 on Monday, 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 1.2566, a break above could take it near 1.2605. On the downside, support is seen at 1.2478, a break below targets 1.2458. Against the euro, the pound was trading 0.2 percent down at 90.48 pence, having hit a low of 90.78 on Tuesday, it’s lowest since March 27.
AUD/USD: The Australian dollar rallied amid growing optimism despite spiking coronavirus cases in the United States, Germany and elsewhere. The Aussie trades 0.1 percent up at 0.6936, having hit a high of 0.6974 on Tuesday, it’s highest since June 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6987, a break above could take it near 0.7012. On the downside, support is seen at 0.6893 (10-DMA) a break below targets 0.6857 (21-DMA).
Equities Recap
Asian shares gained as investors remained upbeat on the outlook for a re-opening of the global economy even as cases of the coronavirus rose to record peaks.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 percent.
Tokyo's Nikkei fell 0.05 percent to 22,534.32 points, Australia's S&P/ASX 200 index surged 0.2 percent to 5,965.70 points. South Korea's KOSPI rallied 1.6 percent to 2,165.08 points.
Shanghai composite index rose 0.4 percent to 2,981.22 points, while CSI 300 index traded 0.5 percent up at 4,143.79 points.
Hong Kong’s Hang Seng traded 0.2 percent lower at 24,868.00 points. Taiwan shares added 0.4 percent to 11,660.67 points.
Commodities Recap
Crude oil prices declined, extending losses from the previous day, after U.S. crude stockpiles grew more than expected, adding to worries about oversupply. International benchmark Brent crude was trading 0.6 percent higher at $42.59 per barrel by 0544 GMT, having hit a high of $43.92 on Tuesday, its highest since March 9. U.S. West Texas Intermediate was trading 0.5 percent up at $40.20 a barrel, after rising as high as $41.61 on Tuesday, its highest since March 6.
Gold prices rallied to its highest level since October 2012, as worries over a rise in coronavirus infections and hopes of more stimulus measures to combat the economic blow boosted the metal's appeal. Spot gold was trading 0.1 percent up at $1,769.75 per ounce by 0557 GMT, having touched a high of $1,773.55 earlier, its highest since late 2012. U.S. gold futures rose 0.4 percent to $1,789.20.
Treasuries Recap
On Tuesday, the benchmark U.S. 10-year yield was up less than a basis point at 0.7102 percent, while the two-year U.S. Treasury yield was unchanged at 0.1918 percent.
