Market Roundup
• U.S. records biggest one-day spike in COVID-19 cases
• French June Manufacturing PMI 52.3, 52.1 forecast, 40.6 previous
•German June Unemployment Rate 6.4%,6.6% forecast, 6.3% previous
•German June Manufacturing PMI 45.2, 44.6 forecast, 36.6 previous
•German June Unemployment n.s.a. 2.853M, 2.813M previous
•German June Unemployment 2.943M, 2.875M previous
•German June Unemployment Change 69K, 120K forecast ,238K previous
•Greek June Manufacturing PMI 49.4, 41.1 previous
• EU June Manufacturing PMI 47.4, 46.9 forecast , 39.4 previous
•UK June Manufacturing PMI 50.1, 50.1 forecast , 50.1 previous
• US MBA Mortgage Applications (WoW) -8.7% previous
• US MBA 30-Year Mortgage Rate 3.30% previous
• US Mortgage Market Index 773.1 previous
• US June Challenger Job Cuts 397.016K previous
• US June Challenger Job Cuts (YoY) 577.8% previous
Looking Ahead - Economic Data (GMT)
• 12:15 US June ADP Nonfarm Employment Change 3,000K forecast, -2,760K previous
• 13:30 US Seevol Cushing Storage Report -0.183M previous
• 14:00 US June Manufacturing PMI 49.6 forecast, 39.8 previous
• 14:00 US June ISM Manufacturing New Orders Index 31.8 previous
• 14:00 US June ISM Manufacturing PMI 49.5 forecast, 43.1 previous
• 14:00 US June ISM Manufacturing Employment 43.0 forecast, 32.1 previous
• 14:00 US June ISM Manufacturing Prices 43.0 forecast, 43.0 previous
• 14:00 US Construction May Spending (MoM) 1.0% forecast, -2.9% previous
• 14:30 US Crude Oil Inventories -0.710M forecast, 1.442M previous
Looking Ahead - Economic events and other releases (GMT)
• 14:00 US Chicago Fed President Evans Speaks
•15:00 German Buba Wuermeling Speaks
• 18:00 US FOMC Meeting Minutes
Fx Beat
EUR/USD: The euro declined against dollar on Wednesday as markets balanced hopes for a global economic recovery with surging COVID-19 infections in the United States. With transmission rates of the coronavirus falling in much of Europe, and economies opening up, IHS Markit’s final euro zone Manufacturing Purchasing Managers’ Index (PMI) moved closer to the 50-mark separating growth from contraction in June. Germany’s manufacturing sector also contracted at a slower pace as Europe’s largest economy lifted restrictions. The euro fell 0.2% versus the dollar to $1.1191 at 1200 GMT. Immediate resistance can be seen at 1.1220 (5 DMA), an upside break can trigger rise towards 1.1289 (23.6% fib).On the downside, immediate support is seen at 1.1161 (38.2% fib), a break below could take the pair towards 1.1130 (Lower BB).
GBP/USD: Sterling strengthened against the U.S. dollar on Wednesday after manufacturing survey data pointed to a small increase in output after the historic collapse caused by the coronavirus.The Purchasing Managers Index survey for June came in at 50.1, in line with the forecast from economists polled by Reuters and up from 40.7 in May. It was unrevised from a preliminary reading. The move above the 50 line signifies growth for the first time since February. Immediate resistance can be seen at 1.2441 (14 DMA), an upside break can trigger rise towards 1.2516 (38.2% fib).On the downside, immediate support is seen at 1.2362 (5 DMA), a break below could take the pair towards 1.2306 (50% fib).
USD/CHF: The dollar held gains against Swiss franc on Wednesday ahead of data expected to show U.S. manufacturing activity and hiring continued to recover from the economic shock caused by the coronavirus pandemic. A surge in coronavirus infections in the U.S. south and southwest has worried some market participants, but most investors are betting this will not be enough to derail a broader rebound in the global economy. At (GMT 12:00 ), greenback gained 0.16% versus the Swiss franc to 0.9487. Immediate resistance can be seen at 0.9495 (Daily high), an upside break can trigger rise towards 0.9535 (50% fib).On the downside, immediate support is seen at 0.9448 (38.2% fib), a break below could take the pair towards 0.9419 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as surging coronavirus infections in the United States sent investors rushing back to safe haven assets. The United States recorded its biggest single-day spike since the pandemic began. The surge has prompted California, Texas and Florida to shut recently re-opened bars in the last few days, while Australia has locked-down parts of its second-biggest city, Melbourne, to try and stop a spike in cases there.Markets are looking to U.S. manufacturing activity data due at 1400 GMT for the latest gauge of its economic recovery and expect a rebound.. Strong resistance can be seen at 108.14 (5 DMA), an upside break can trigger rise towards 108.91 (Ichimoku Cloud Base).On the downside, immediate support is seen at 106.84 (March 3rd low), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares dipped on Wednesday as surging U.S. coronavirus cases held optimism in check.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading lower at 1.34 percent, Germany's Dax was down by 1.51 percent, France’s CAC was last down by 1.39 percent.
Commodities Recap
Gold prices rose to their highest in nearly eight years on Wednesday as a spike in coronavirus cases parked concerns over the economic recovery from the pandemic and boosted demand for safe-havens.
Spot gold hit its highest since early October 2012 at $1,788.96 in early trade, and by 0958 GMT was at $1,787.31 per ounce, up 0.4%. U.S. gold futures were up 0.3% at $1,805.10 per ounce.
Oil prices rose on Wednesday on a string of positive manufacturing data and a drawdown in U.S. crude inventories, both indicating an economic recovery and rise in energy demand despite surging coronavirus infections around the world.
Brent crude was up 59 cents, or 1.4%, to $41.86 a barrel at 1107 GMT, and U.S. crude was up 64 cents, or 1.6%, at $39.91 a barrel.
