Market Roundup
• Swiss May Trade Balance 2.801B, 4.043B
• Swiss SNB Interest Rate Decision-0.75%,-0.75% forecast,-0.75% previous
• Italian April Trade Balance -1.157B, 5.685B previous
• Italian April Trade Balance EU -1.00B, 0.60B previous
•EU ECB LTRO 1,308.4B, 115.0B previous
• UK June BoE Interest Rate Decision 0.10%,0.10% forecast, 0.10% previous
• UK June BoE QE Total 725B, 725B forecast, 645B previous
Looking Ahead Economic Data (GMT)
•12:00 Brazil IBC-Br Economic Activity -5.90% previous
•12:30 US Continuing Jobless Claims 19,800K forecast, 20,929K previous
•12:30 US Initial Jobless Claims 1,300K forecast, 1,542K previous
• 12:30 Canada May New Housing Price Index (MoM) 0.0% previous
• 12:30 Canada ADP Nonfarm Employment Change -226.7K previous
• 12:30 Canada April Wholesale Sales (MoM) -12.6% forecast, -2.2% previous
• 12:30 US June Philly Fed CAPEX Index 15.20 previous
• 12:30 US Philly Fed Employment -15.3 previous
• 12:30 US June Philadelphia Fed Manufacturing Index -23.0 forecast, -43.1 previous
• 12:30 US June Philly Fed New Orders -25.7 previous
• 12:30 US June Philly Fed Business Conditions 49.7 previous
• 12:30 US June Philly Fed Prices Paid 3.20 previous
• 12:30 US Jobless Claims 4-Week Avg 2,002.00K previous
• 13:00 Russia Central Bank reserves (USD) 565.2B previous
•14:00 US May Leading Index (MoM) 2.3% forecast, -4.4% previous
Looking Ahead - Events, Other Releases (GMT)
• 16:15 US FOMC Member Mester Speaks
• 17:30 Canada BoC Gov Council Member Schembri Speaks
Fxbeat
EUR/USD: The euro declined on Thursday as investors questioned whether the European Union would be able to pass an ambitious stimulus plan proposed by the European Commission, given that some countries are opposed to handing out aid as grants. Investors now await U.S. weekly jobless claims data, due later on Thursday, for further clues on the global economic outlook. Immediate resistance can be seen at 1.1291 (23.6% fib), an upside break can trigger rise towards 1.1360 (June 16th high).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1164 (38.2% fib).
GBP/USD: GBP/USD: Sterling declined against the dollar on Thursday after the Bank of England increasing its bond-buying by 100 billion pounds ($125 billion) to bolster the coronavirus-hit economy.The central bank, which also kept its benchmark interest rate at 0.1%, said it expects a new total of 745 billion pounds in government bond purchase to be hit by the end of the year. By 1230 GMT the pound was 0.4% down against the dollar at $1.2453 and 0.5% down against the euro at 89.85 pence. Immediate resistance can be seen at 1.2603 (14 DMA),an upside break can trigger rise towards 1.2775(23.6% fib).On the downside, immediate support is seen at 1.2419 (30 DMA), a break below could take the pair towards 1.2307 (50%fib). Immediate resistance can be seen at 1.2603 (14 DMA),an upside break can trigger rise towards 1.2775(23.6% fib).On the downside, immediate support is seen at 1.2419 (30 DMA), a break below could take the pair towards 1.2307 (50%fib).
USD/CHF: The dollar gained against the Swiss franc on Thursday as growing concerns about a rise in coronavirus cases increased demand for risker dollar. A surge in new coronavirus infections in several U.S. states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder about the risks of re-opening economic activity before a vaccine has been developed. The greenback bought 0.9506 Swiss franc, holding onto a 0.3% gain on Thursday. Immediate resistance can be seen at 0.9510 (11 DMA), an upside break can trigger rise towards 0.9533 (50 % fib).On the downside, immediate support is seen at 0.9449 (38.2% fib), a break below could take the pair towards 0.9380 (June 11th low ).
USD/JPY: The dollar dipped against the Japanese yen Thursday as concerns about a rise in new coronavirus cases increased demand for safe-haven yen. A surge in new coronavirus infections in several U.S. states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder of the risks of re-opening economic activity before a vaccine has been developed. Strong resistance can be seen at 107.57 (30 DMA), an upside break can trigger rise towards 108.02 (38.2% fib).On the downside, immediate support is seen at 106.67 (50% fib ), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares retreated on Thursday as a spike in COVID-19 cases in China and some U.S. states triggered fears of a second wave of infections, knocking back hopes of a swift recovery from the pandemic-led economic slump.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.96 percent, Germany's Dax was down by 1.43 percent, France’s CAC finished was down by 1.46 percent.
Commodities Recap
Gold prices rose on Thursday, as fears that new coronavirus cases could impede economic recovery bolstered demand for the precious metal and weighed on riskier assets.
Spot gold was up 0.3% at $1,731.88 per ounce by 0933 GMT, having earlier hit a near one-week high of $1,736.49. U.S. gold futures rose 0.5% to $1,744.80 per ounce.
Oil prices were broadly stable on Thursday as Brent erased losses in early European trading ahead of a meeting of OPEC members and their allies against the backdrop of demand concerns over new coronavirus cases in China and elsewhere.
Brent crude futures were up 2 cents at $40.73 a barrel at 0725 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 14 cents to $37.82 a barrel.
Treasuries Recap
Euro zone bonds held steady in early Thursday trade ahead of the results of the ECB’s new funding round of cheap loans to banks, with strong take-up expected to support the bond market.
German 10-year government bond yields were unchanged at -0.42%. Italian 10-year yields were also unchanged at 1.37%.
