Market Roundup
• UK CPI, n.s.a 108.60, 108.50 previous
• UK June Core PPI Output (YoY) 0.5% , 0.6% forecast, 0.6% previous
• UK June Core PPI Output (MoM) 0.0%,0.1% forecast, 0.0% previous
• UK June PPI Input (MoM) 2.4%,3.0% forecast, 0.3% previous
• UK June PPI Input (YoY) -6.4% , -6.5% forecast, -10.0% previous
• UK June PPI Output (YoY) -0.8%,-1.1% forecast, -1.4% previous
• UK June CPI (YoY) 0.6%,0.4% forecast, 0.5% previous
• UK June CPI (MoM) 0.1%, -0.2% forecast, 0.0% previous
• UK June Core CPI MoM (MoM ) 0.2%,-0.1% forecast, 0.1% previous
• Russia June Industrial Production (YoY) 0.0%, -7.9% forecast, -9.6% previous
•Italian June CPI (MoM) 0.1%,0.1% forecast, -0.2% previous
• US MBA 30-Year Mortgage Rate 3.19%, 3.26% previous
• US MBA Purchase Index 305.4, 325.2 previous
Looking Ahead - Economic data (GMT)
• 12:30 US June Import Price Index (MoM) 1.0% forecast, 1.0% previous
• 12:30 US Export Price Index (MoM) 0.8% , 0.5% previous
• 12:30 US Jul NY Empire State Manufacturing Index 10.00 forecast, -0.20 previous
• 12:30 Canada May Manufacturing Sales (MoM) 9.5%,-28.5% previous
• 12:30 Canada June May Core CPI (MoM) -0.1% previous
• 12:30 Canada June Core CPI (YoY ) 0.7% previous
• 12:30 Canada June CPI (MoM) 0.7% forecast, 0.3% previous
• 12:30 Canada Common CPI (YoY) 1.4% previous
• 12:30 Canada Median CPI (YoY) 1.9% previous
•12:30 Canada Trimmed CPI (YoY) 1.7% previous
• 13:15 US June Industrial Production (YoY) -15.27% previous
• 13:15 US Manufacturing Production (MoM) 5.6% forecast, 3.8% previous
• 13:15 US June Capacity Utilization Rate 67.7% forecast, 64.8% previous
• 13:15 US June Industrial Production (MoM) 4.3% forecast, 1.4% previous
• 13:30 US Seevol Cushing Storage Report 1.566M previous
Looking Ahead - Economic events and other releases (GMT)
• 14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous
• 14:00 Canada BoC Rate Statement
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday on hopes European Union leaders may agree on stimulus and deepening fiscal integration to shield the economy from the pandemic. The euro has been helped by hopes the European Union could agree at its summit later this week on a rescue financing package that will limit the economic damage to the bloc from the coronavirus pandemic. The euro rose to as high as $1.1442 , its highest level since March 10 and not far off its peak so far this year of $1.1495. Immediate resistance can be seen at 1.1442 (Daily high), an upside break can trigger rise towards 1.1500 (Psychological level).On the downside, immediate support is seen at 1.1386 (23.6% fib), a break below could take the pair towards 1.1356 (23.6% fib).
GBP/USD: Sterling rose against dollar on Wednesday weaker dollar and an improvement in risk sentiment boosted sterling. Investors are also waiting for more news on Britain’s negotiations with the European Union on concluding a trade deal for the post-Brexit period. Britain left the bloc on Jan. 31, with a one-year transition period to iron out a future relationship . The pound was up 0.5% at against dollar at $1.2630. Immediate resistance can be seen at 1.2655 (Higher BB), an upside break can trigger rise towards 1.2700 (Psychological level).On the downside, immediate support is seen at 1.2574 (38.2% fib), a break below could take the pair towards 1.2476 (21 DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as optimism about a coronavirus vaccine bolstered risk appetite w ahead of a crucial EU summit. Risk appetite was boosted by Moderna Inc’s experimental vaccine for COVID-19 which showed it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study. Immediate resistance can be seen at 0.9422 (11DMA), an upside break can trigger rise towards 0.9463 (38.2% fib).On the downside, immediate support is seen at 0.9422 (Lower BB), a break below could take the pair towards 0.9361 (23.6% fib).
USD/JPY: The dollar declined against the Japanese yen Wednesday as dollar was weighed down after data showed that core inflation remained below Fed’s target . U.S. consumer prices rebounded by the most in nearly eight years in the month, but a resurgence in new COVID-19 cases after the reopening of businesses suggests a moderation in demand that could keep inflation muted June. Strong resistance can be seen at 107. 31 (11 DMA), an upside break can trigger rise towards 107.50 (50% fib).On the downside, immediate support is seen at 106.80 (Daily low), a break below could take the pair towards 106.54 (Lower BB).
Equities Recap
European shares rebounded on Wednesday from losses in the previous session, bolstered by positive updates on a potential COVID-19 vaccine, while investors weighed a mixed bag of quarterly reports at the start of earnings season.
At (GMT 12:14 ),UK's benchmark FTSE 100 was last trading up at 2.06 percent, Germany's Dax was up by 1.82 percent, France’s CAC finished was up by 2.50 percent.
Commodities Recap
Gold rose to a one-week high on Wednesday, holding comfortably above the key $1,800 level, on safe-haven demand fuelled by concerns over brewing U.S.-China tensions and their impact on a global economy already reeling from the COVID-19 pandemic.
Spot gold was up 0.1% to $1,809.61 per ounce at 0940 GMT, having hit its highest since July 9 at $1,814.40. U.S. gold futures were steady at $1,813.10.
Oil prices rose on Wednesday following a sharp drop in U.S. crude inventories, with the market waiting for next steps from a meeting later in the day on the future level of output cuts by OPEC and its allies.
Brent crude futures were up 19 cents, or 0.4%, at $43.09 a barrel as of 0343 GMT, and U.S. West Texas Intermediate (WTI) crude futures rose 17 cents, or 0.4%, to $40.46 a barrel.
Treasuries Recap
Euro zone bond yields held steady in early Wednesday trade, with a light data calendar keeping focus on Thursday’s European Central Bank meeting and Friday’s European Union summit.
Germany’s 10-year yield was unchanged on Wednesday at -0.45% after falling 3 basis points on Tuesday. Italy’s 10-year bond yield was unchanged at 1.27%.
