Market Roundup
•Pound edges lower on fresh worries about hard Brexit
•UK ramps up no-deal preparations as EU trade talks stall
•French Non-Farm Payrolls (QoQ) (Q2) -0.9%, -0.6% forecast, -2.0% previous
•German Jul Exports (MoM) 4.7%,5.0% forecast, 14.9% previous
•German Jul Trade Balance 18.0B, 16.0B forecast, 14.5B previous
•German Jul Imports (MoM) 1.1%, 3.3% forecast, 7.0% previous
•German Jul Current Account Balance n.s.a 20.0B, 22.4B previous
•French Jul Exports 35.5B, 32.4B previous
•French Jul Trade Balance -7.0B, -8.0B previous
•French Jul Imports 42.5B, 40.4B previous
•French Jul Current Account -6.20B, -8.40B previous
•Sweden Industrial Production (MoM) 2.4%,8.8% previous
•Sweden Industrial Production (YoY) -8.0%,-8.2% previous
•Italian Jul Retail Sales (YoY) -7.2%,-2.2% previous
•Italian Jul Retail Sales (MoM) -2.2%, 12.1% previous
•EU GDP (YoY) (Q2) -14.7%,-15.0%,-15.0% previous
• EU Employment Overall (Q2) 155,597.0K, 155,894.7K previous
• EU Employment Change (YoY) (Q2) -3.1%,-2.9% forecast, 0.4% previous
• EU Employment Change (QoQ) (Q2) -2.9%,-2.8% forecast, -0.2% previous
• EU GDP (QoQ) (Q2) -11.8%,-12.1% forecast, - 12.1% previous
•US Aug NFIB Small Business Optimism 100.2, 98.8 previous
Looking Ahead - Economic Data (GMT)
•14:00 US Aug CB Employment Trends Index 50.89 previous
•14:00 US IBD/TIPP Economic Optimism 46.8 previous
•15:30 US 3-Month Bill Auction 0.115% previous
•15:30 US 6-Month Bill Auction 0.105% previous
•17:00 US 52-Week Bill Auction 0.140% previous
• 19:00 US July Consumer Credit 13.50B, 8.95B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as investors awaited European Central Bank meeting later this week. The main focus this week is on the European Central Bank’s policy decision on Thursday. Most analysts don’t expect a change in the central bank’s policy stance but are looking to the message on its inflation forecasts and whether it seems concerned by the euro’s strength. The meeting comes after the single currency marked a two-year high just above $1.20 at the beginning of the month. Immediate resistance can be seen at 1.1830 (5 DMA), an upside break can trigger rise towards 1.1870 (38.2%fib).On the downside, immediate support is seen at 1.1775 (50%fib), a break below could take the pair towards 1.1724 (Lower BB ).
GBP/USD: Sterling declined against the dollar on Tuesday as fears grew that Britain was preparing to undercut its Brexit divorce treaty and potentially torpedo trade talks with the European Union The latest round of negotiations started on Tuesday, with Britain warning Brussels that it was ramping up preparations to leave without an agreement. The EU has warned there will be no trade deal if Britain tries to override parts of the Withdrawal Agreement it signed in January. The pound dropped 1% to $1.3040, its weakest since Aug. 13, while it also fell heavily against the euro to a two-week low of 90.40 pence .Immediate resistance can be seen at 1.3070 (50%fib), an upside break can trigger rise towards 1.3178 (21DMA).On the downside, immediate support is seen at 1.3024 (Daily low), a break below could take the pair towards 1.2957 (Lower BB).
USD/CHF: The dollar gained against Swiss franc on Tuesday as investors awaited policy cues from the European Central Bank. Market players also awaited the policy meeting of the Bank of Canada on Wednesday, while the U.S. Fed’s next meeting is scheduled for next week. Global central banks have saturated markets with extraordinary liquidity steps to offset the economic damage inflicted by the coronavirus. Immediate resistance can be seen at 0.9196 (38.2%fib), an upside break can trigger rise towards 0.9260 (50%fib).On the downside, immediate support is seen at 0.9155 (Daily low), a break below could take the pair towards 0.9115 (23.6%fib).
USD/JPY: The dollar traded firmer against the Japanese yen on Tuesday amid talk of a snap election in Japan. Japan’s ruling party formally kicked off its leadership race on Tuesday, frontrunner and chief cabinet secretary Yoshihide Suga said that preventing the spread of the coronavirus should take priority in any decision to call a snap election. Markets have been rife with speculation that if elected, Suga might call a snap election to solidify his political grip. He signalled in an Asahi Shimbun interview that there was a chance of calling snap elections but cautioned that the coronavirus would impact any such decision. Strong resistance can be seen at 106.83 (50%fib), an upside break can trigger rise towards 107.00 (Psychological level).On the downside, immediate support is seen at 106.06 (9 DMA), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares dipped on Tuesday as investors pondered whether policy signals from the European Central Bank this week could weaken the euro..
At (GMT 11:25),UK's benchmark FTSE 100 was last trading down at 0.61 percent, Germany's Dax was down by 1.39 percent, France’s CAC was last down by 1.73 percent.
Commodities Recap
Gold prices fell on Tuesday on a strong dollar but the metal held in a tight range buoyed by lingering economic concerns as investors awaited policy cues from the European Central Bank.
Spot gold fell 0.5% to $1,919.07 per ounce by 0946 GMT. U.S. gold futures was also down 0.5%, at $1,924.80.
Oil slid more than 3% towards $40 a barrel on Tuesday, its fifth session of decline, pressured by concerns that a recovery in demand could weaken as coronavirus infections flare up around the world.
Brent crude fell $1.43, or 3.4%, to $40.58 a barrel at 1127 GMT, and earlier slipped to $40.55, the lowest since June 29. U.S. West Texas Intermediate (WTI) crude dropped $2.06, or over 5%, to $37.71.
