|   Market Roundups


  |   Market Roundups


Europe Roundup: Euro dips on fears of pandemic wave, European stocks rebound, Gold steadies, Oil slips towards $40 on record U.S. inventories, COVID fears-June 25th,2020

Market Roundup

• German GfK Consumer Climate  -9.6, -12.0 forecast, -18.9 previous

• Spanish PPI (YoY)  -8.7%,-8.4% previous

• Italian May Trade Balance Non-EU  4.15B, -0.15B previous

•France Jobseekers Total 4,167.4K, 4,315.7K previous

• UK June CBI Distributive Trades Survey  -37, -34 forecast, -50 previous

• US May Core Durable Goods Orders (MoM) 4.0%, 2.5% forecast, -7.7% previous

• US May Goods Trade Balance -74.34B, -70.73B previous

• US Corporate Profits (QoQ) (Q1) -12.4%,-14.2% previous

• US Wholesale Inventories (MoM) -1.2%  , 0.3% previous

• US Initial Jobless Claims 1,480K,1,300K forecast, 1,508K previous

• US Continuing Jobless Claims 19,522K, 19,968K forecast, 20,544K previous

• US Jobless Claims 4-Week Avg               1,620.75K,  1,773.50K previous

• US May Durables Excluding Defense (MoM) 15.5%, -16.6% previous

• US May Retail Inventories Ex Auto -1.5%, -1.1% previous

• US May Goods Orders Non Defense Ex Air (MoM) 2.3%, 1.0% forecast, -6.1% previous

• US May Durable Goods Orders (MoM) 15.8%, 10.9% forecast,-17.7% previous

• US GDP Price Index (QoQ) (Q1) 1.6%, 1.4% forecast, 1.4% previous

• US Core PCE Prices (Q1) 1.70%, 1.60% forecast, 1.60% previous

• US PCE Prices (Q1) 1.3%, 1.3% previous

• US GDP Sales (Q1) -3.5%, -3.7% previous

• US Real Consumer Spending (Q1) -6.8%,-6.8% previous

• US GDP (QoQ) (Q1) -5.0%,-5.0% forecast, 2.1% previous

Looking Ahead-Economic Data(GMT)

• 13:00 Russia Central Bank reserves (USD) 570.8B previous

• 15:00 US June KC Fed Composite Index  -19 previous

• 15:00 US June KC Fed Manufacturing Index  -25 previous

Looking Ahead - Events, Other Releases (GMT)

• 13:30 US FOMC Member Kaplan Speaks

• 13:30 US FOMC Member Bostic Speaks


EUR/USD: The euro declined against dollar on Thursday as investors turned cautious as rising coronavirus cases stoked fears of a second wave of infection, the IMF slashed its global output forecasts, and the U.S. flagged European products worth $3.1 billion as potential targets for future tariffs. Investors pushed funds into the dollar and other traditional safe havens as the trade tensions and rising coronavirus cases in India, Indonesia, the United States and parts of Europe cooled hopes of a quick global economy recovery. The euro was last down 0.43% against the U.S. currency at $1.1201. Immediate resistance can be seen at 1.0859 (11 DMA), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0780 (Daily low), a break below could take the pair towards 1.0754 (23.6% fib).

GBP/USD: Sterling gained against dollar on Thursday as traders bought back into the currency following its recent run lower, although worries about a second wave of COVID-19 infections and negotiations over a Brexit deal kept the rebound in check. Analysts said there was no specific new development that pushed the pound higher, but with European equities steadying after earlier falls and some calm returning to markets, sterling was able to claw its way upwards. The British currency was last up 0.3% at $1.2431 against a dollar. Before a sharp drop on Wednesday, the pound had traded around $1.254. Immediate resistance can be seen at 1.2521 (38.2% fib), an upside break can trigger rise towards 1.2543 (14 DMA).On the downside, immediate support is seen at 1.2313 (50% fib), a break below could take the pair towards 1.2245 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as rising concerns about the coronavirus pandemic pushed investors switch to dollar. Adding to the gloom, European Central Bank chief economist Philip Lane warned that the euro zone economy would need a long time to recover from the pandemic-induced crisis and a string of solid data in recent days was not necessarily a good guide to recovery. At (GMT 12:16), Greenback gained 0.22% versus the Swiss franc to 0.9494. Immediate resistance can be seen at 0.9538 (50% fib), an upside break can trigger rise towards 0.9600 (Psychological level).On the downside, immediate support is seen at 0.9451 (38.2% fib), a break below could take the pair towards 0.9381 (lower BB).

USD/JPY: The dollar gained against the Japanese yen on Thursday as factors ranging from rising trade tensions to fears of a second wave of the coronavirus fuelled demand for greenback. A resurgence of COVID-19 cases from the United States to Kyrgyzstan fuelled fresh fears that the V-shaped economic recovery expected by the market was in jeopardy. The International Monetary Fund slashed its 2020 global output forecasts further, predicting more damage from the pandemic than it had previously expected. Strong resistance can be seen at 107.38 (50 DMA), an upside break can trigger rise towards 108.12 (38.2% fib).On the downside, immediate support is seen at 106.71 (61.8% fib), a break below could take the pair towards 106.00 (Psychological level).

Equities Recap

European stocks swung to positive territory on Thursday, with a jump in shares of Lufthansa and Bayer helping Germany outperform as investors weighed the economic risks of a number of upturns in coronavirus infections.

At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 0.41 percent, Germany's Dax was down by 0.17 percent, France’s CAC finished was up by 0.02 percent.

Commodities Recap

Gold prices steadied on Thursday as a spike in coronavirus cases dented demand for riskier assets though gains were capped by rival safe haven buying of the dollar.

Spot gold was steady at $1,762.21 per ounce at 1114 GMT, trading below its highest since October 2012 at $1,779.06, hit on Wednesday. U.S. gold futures fell 0.2% to $1,772.20.

Oil slipped towards $40 a barrel on Thursday after a more than 5% fall the previous session, as record-high U.S. crude inventories and a resurgence in coronavirus cases cast doubt on a recovery in fuel demand.

Brent crude fell 13 cents, or 0.3%, to $40.18 at 0957 GMT, and traded as low as $39.47. The global benchmark dropped 5.4% on Wednesday. U.S. West Texas Intermediate (WTI) crude declined 23 cents, or 0.6%, to $37.78.

Treasuries Recap

Demand for safe European government debt rose on Thursday, with German bond yields falling and the spread with riskier Italian debt widening, as Wednesday’s risk-off mood extended through the Asian session.

Germany’s benchmark 10-year Bund yield was at -0.462% at 1050 GMT, down 3 bps but still trading within the week’s range .

  • Market Data

Welcome to EconoTimes

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