Europe Roundup: Euro dips to two-week low against dollar, European stocks gains, Gold rises, Oil extends losses on supply overhang, weak outlook-May 7th,2020

Market Roundup

• U.S. jobs data awaited

• Turkey’s lira slumps to record low

• Swiss April Unemployment Rate n.s.a.  3.3%,3.3% forecast, 2.9% previous

• Swiss April Unemployment Rate s.a.  3.3%,3.3% forecast, 2.8% previous

• German March Industrial Production (MoM)  -9.2%,-7.5% forecast, 0.3% previous

• UK May BoE Interest Rate Decision 0.10%,0.10% forecast, 0.10% previous

• Russia April Markit Services PMI 12.2, 37.1 previous

• French March Industrial Production (MoM)  -16.2%,-12.4% forecast, 0.9% previous

• French March Current Account  -3.30B    , -3.80B previous

• French Industrial Investments (Q2) -7.0%,3.0% previous

• French Non-Farm Payrolls (QoQ) (Q1) -2.3%,0.4% previous

• UK April Halifax House Price Index (MoM)  -0.6%,-0.7% forecast, -0.3%  previous

• UK April Halifax House Price Index (YoY) 2.7%,3.0% previous

• Italian March Retail Sales (MoM)  -20.5%,0.8% previous

• Italian March Retail Sales (YoY)  -18.4%,5.7% previous

Looking Ahead - Economic Data (GMT)

•12:30 US Jobless Claims 4-Week Avg 5,033.25K previous

• 12:30 US Continuing Jobless Claims 19,905K forecast, 17,992K  previous

• 12:30 US Initial Jobless Claims 3,000K forecast, 3,839K previous

• 12:30 US Nonfarm Productivity (QoQ) (Q1) -5.5% forecast,1.2% previous

• 13:00 Russia April CPI (MoM)  0.8% forecast, 0.6% previous

• 13:00 Russia April CPI (YoY)  3.1% forecast,2.5% previous

• 14:00 Canada April Ivey PMI  25.0 forecast, 26.0 previous

• 14:00 Canada April Ivey PMI n.s.a  28.2 previous

• 19:00 US March Consumer Credit 15.00B forecast, 22.33B previous

Fxbeat

EUR/USD: The euro dipped to its lowest level in almost two weeks on Thursday, on nagging concern over the direction of the European Central Bank’s stimulus scheme following a German court ruling earlier this week. The euro dipped to $1.07785, its lowest level in almost two weeks and reversing modest gains earlier in the day. It has shed more than 1.5% this week and is set for its biggest weekly drop in just over a month. Immediate resistance can be seen at 1.0824 (38.2% fib), an upside break can trigger rise towards 1.0873 (21 DMA).On the downside, immediate support is seen at 1.0750 (23.6% fib), a break below could take the pair towards 1.0722 (24th March low).

GBP/USD:  The pound rose against the dollar after a Bank of England policy announcement on Thursday, but the rally was short-lived and more the result of the pound’s recent weakness than any surprises from the central bank. The Bank of England held rates steady and announced no further stimulus, as was broadly expected, and said it was ready to take fresh action to counter the economic fallout from the coronavirus pandemic.  Immediate resistance can be seen at 1.2414 (5 DMA), an upside break can trigger rise towards 1.2437 (21 DMA).On the downside, immediate support is seen at 1.2308 (Daily low), a break below could take the pair towards 1.2269 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors sought refuge in greenback in the wake of dire global economic numbers. The new coronavirus has infected more than 3.71 million people globally, battered global growth and prompted investors to seek safe havens such as greenback and gold. It has risen more than 10% so far this year.  Immediate resistance can be seen at 0.9789 (Higher BB), an upside break can trigger rise towards 0.9800 (Psychological level).On the downside, immediate support is seen at 0.9702 (9 DMA), a break below could take the pair towards 0.9676 (5 DMA).

USD/JPY: The dollar dipped  against the Japanese yen on Thursday as sombre economic data heightened fears over global growth increasing demand for Japanese yen. More dismal data from the United States underscored the deep economic impact of the virus, with U.S. private employers laying off a record 20.2 million workers in April.The focus now shifts to U.S. weekly initial jobless claims data due later on Thursday. Immediate resistance can be seen at 106.80 (5 DMA), an upside break can trigger rise towards 107.00 (9 DMA ).On the downside, immediate support is seen at 106.20 (Lower BB), a break below could take the pair towards 106.00  (Psychological level). 

Equities Recap

European shares rose on Thursday as a surprise rise in China’s exports overshadowed another set of grim results and a warning from Air France-KLM that demand could take “several years” to recover.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading up at 1.06 percent, Germany's Dax was up  by 1.07 percent, France’s CAC finished was up by 1.25 percent.

Commodities Recap

Gold prices gained on Thursday after a batch of sombre economic data heightened fears over global growth, while a stronger dollar and the easing of coronavirus-driven lockdowns by many countries limited the
upside.  

Spot gold was up 0.4% at $1,691.95 per ounce by 1006 GMT. U.S. gold futures   rose 0.6% to $1,698.

Oil prices extended losses on Thursday as the industry grappled with the growing global surplus of crude and the sharp coronavirus-led downturn in demand, with the outlook still grim despite April data showing a rise in imports into China.

Brent crude was down by 24 cents, or 0.8%, to $29.48 a barrel by 0649 GMT, after dropping 4% on Wednesday.

U.S. West Texas Intermediate futures dropped 34 cents, or 1.4%, to $23.65 a barrel, having declined more than 2% in the previous session.

Treasuries Recap

Euro zone bond yields were mostly steady on Thursday following a hefty sell-off a day earlier as issuance and a German court ruling targeting an ECB bond purchase programme remained in focus.

Most 10-year euro zone bond yields were up around 1 basis point on the day , with Germany’s benchmark at -0.50%. Spanish bonds underperformed, with 10-year yields up 2 bps at 0.95%.