Market Roundup
• German May WPI (YoY) -4.3%, 3.5% previous
•German May WPI (MoM) -0.6%,-1.4% previous
• UK May Claimant Count Change 528.9K, 400.0K forecast, 856.5K previous
• UK April Average Earnings ex Bonus 1.7%,1.9% forecast, 1,032.7% previous
• UK April Average Earnings Index +Bonus 1.0%,1.4% forecast, 2.7% previous
• UK April Unemployment Rate 3.9%,4.7% forecast, 3.9% previous
• UK April Employment Change 3M/3M (MoM) 6K, -83K forecast, 211K previous
• German May CPI (MoM) -0.1%,-0.1% forecast, -0.1% previous
• German May CPI (YoY) 0.6%,0.6% forecast, 0.6% previous
• German May HICP (YoY) 0.5%, 0.5% forecast, 0.5% previous
• German May HICP (MoM) 0.0%,0.0% forecast, 0.4% previous
• German June ZEW Economic Sentiment 63.4, 60.0 forecast, 51.0 previous
• EU June ZEW Economic Sentiment 58.6, 46.0 previous
• EU Labor Cost Index (YoY) (Q1) 3.40%,2.30% forecast, 2.40% previous
• German Jun ZEW Current Conditions -83.1, -84.0 forecast, -93.5 previous
• Spain Wages in euro zone (YoY) (Q1) -0.554%,-0.451% previous
Looking Ahead Economic Data(GMT)
• 12:30 US May Retail Control (MoM) 4.7%,-15.3% previous
• 12:30 US May Retail Sales (YoY) -21.61% previous
• 12:30 US May Core Retail Sales (MoM) 5.5%forecast,-17.2% previous
• 12:30 US May Retail Sales (MoM) 8.0% forecast, -16.4% previous
• 12:30 US May Retail Sales Ex Gas/Autos (MoM) -16.2% previous
• 12:30 Canada April Foreign Securities Purchases by Canadians -42.24B previous
• 12:30 Canada April Foreign Securities Purchases -9.78B previous
• 12:55 US Redbook (YoY) -9.7% previous
• 12:55 US Redbook (MoM) -3.2% previous
• 13:00 Russia May Industrial Production (YoY) -8.0% forecast,-6.6% previous
• 13:15 US May Industrial Production (YoY) -15.04% previous
• 13:15 US May Manufacturing Production (MoM) 4.6% forecast, -13.7% previous
• 13:15 US May Capacity Utilization Rate 66.9% forecast, 64.9% previous
• 13:15 US May Industrial Production (MoM) 2.9%,-11.2% previous
• 14:00 US April Business Inventories (MoM) -0.8% forecast, -0.2% previous
• 14:00 US Jun NAHB Housing Market Index 45 forecast, 37 previous
• 14:00 US April Retail Inventories Ex Auto -1.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 19:00 Canada BoC Gov Council Member Wilkins Speaks
• 22:30 US FOMC Member Clarida Speaks
Fxbeat
EUR/USD: The euro declined on Tuesday as traders feared a second wave of coronavirus and decided to cash in on euro’s gains. Global cases of the novel coronavirus have reached over 8 million. Deaths stand at over 434,000 and have doubled in seven weeks. German investor sentiment rose more than expected in June on hopes that the worst of a sharp downturn in Europe’s largest economy prompted by the coronavirus pandemic will be over by the summer, a survey showed on Tuesday, but this has not had any impact on the common currency. Immediate resistance can be seen at 1.1359 (Daily high), an upside break can trigger rise towards 1.449 (Higher BB).On the downside, immediate support is seen at 1.1280 (23.6% fib), a break below could take the pair towards 1.1200 (Psychological level).
GBP/USD: The pound rose on Tuesday after hitting a two-week low in the previous session against the dollar as a combination of friendlier Brexit talks and better than feared job data helped the pound against a broadly weaker dollar. Britain’s jobless rate unexpectedly held at 3.9% over the three months to April as firms turned to the government’s job retention scheme to keep employees on their books during a record slump in economic output because of the coronavirus lockdown. Immediate resistance can be seen at 1.2759 (23.6% fib), an upside break can trigger rise towards 1.2869 (Higher BB).On the downside, immediate support is seen at 1.2658 (14 DMA), a break below could take the pair towards 1.2515 (38.2 %fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday after the U.S. Federal Reserve prepared to start its corporate bond buying scheme, while a report flagging the possibility of more fiscal stimulus helped underpin investor sentiment.The Fed said it would start purchasing corporate debt on Tuesday as part of an already announced stimulus scheme, and launched its Main Street Lending Program for businesses. The move boosted confidence across asset classes and underpinned dollar. Immediate resistance can be seen at 0.9533 (50% fib), an upside break can trigger rise towards 0.9546 (14 DMA).On the downside, immediate support is seen at 0.9447 (38.2 % fib), a break below could take the pair towards 0.9340 (23.6% fib).
USD/JPY: The dollar gained against the Japanese yen Tuesday after the U.S. Federal Reserve announced it would begin broad buying of corporate debt, boosting investor sentiment and appetite for riskier currencies. The Bank of Japan kept monetary settings steady on Tuesday and stuck to its view the economy will gradually recover from the coronavirus pandemic, signalling it has taken enough steps to support growth for now. Market participants are awaiting the U.S. retail sales and industrial production due later in the day. Strong resistance can be seen at 107.55 (50 DMA), an upside break can trigger rise towards 108.10 (Higher BB).On the downside, immediate support is seen at 106.90 (5 DMA), a break below could take the pair towards 106.10 (Lower BB).
Equities Recap
European stock index futures joined a global rally on Tuesday, ahead of the U.S. Federal Reserve’s plan to kick off its corporate bond buying programme in an attempt to contain the economic damage from the COVID-19 pandemic.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 3.58 percent, Germany's Dax was up by 3.90 percent, France’s CAC finished was up by 3.44 percent.
Commodities Recap
Gold rose on Tuesday supported by a weaker dollar as well as the U.S. Federal Reserve’s announcement of details of a plan to start buying corporate debt to revive the country’s economy.
Spot gold rose 0.3% to $1,729.05 per ounce by 0924 GMT, after falling more than 1% before the Fed announcement on Monday. U.S. gold futures gained 0.6% to $1,737.
Oil prices rose on Tuesday, with Brent crude rising above $40 a barrel, as the IEA increased its oil demand forecast for 2020 and as record supply cuts supported.
Brent crude rose 77 cents, or 1.94%, at $40.49 a barrel by 0918 GMT. U.S. oil gained 61 cents, or 1.64%, to $37.73 a barrel.
