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Europe Roundup: Sterling dips as rising U.S. yields lift dollar, European shares turn lower, Gold gains, Oil prices drop amid supply glut, fears of second coronavirus wave-May 11th,2020

Market Roundup

• Italian March Industrial Production (MoM)  -28.4%,-20.0% forecast, -1.2% previous

• Italian March Industrial Production (YoY)  -29.3%, -20.7% forecast, -2.4% previous

• Greek March Industrial Production (YoY)  0.6% , -3.4% previous

Looking Ahead - Economic Data (GMT)

•14:00 US April CB Employment Trends Index 60.39 previous

 •15:30 US 6-Month Bill Auction 0.130% previous

• 15:30  US 3-Month Bill Auction 0.110% previous

Looking Ahead - Events, Other Releases (GMT)

• 16:00 US   FOMC Member Bostic Speaks

• 16:00 US Chicago Fed President Evans Speaks

Fxbeat

EUR/USD: The euro dipped against dollar on Monday as demand for greenback increased after moves by the United States and other countries to re-open their economies raised hopes for a quicker global recovery from a deep recession triggered by the coronavirus health crisis. The euro was up 0.18 percent at $1.0815. Immediate resistance can be seen at 1.0829 (38.2% fib), an upside break can trigger rise towards 1.0860 (11 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0755 (23.6% fib).

GBP/USD: Sterling dipped against the dollar on Monday as rising U.S. Treasury yields put the U.S. currency in demand, with investors cautious about the easing of coronavirus lockdown measures in Britain.As several countries moved to reopen their economies with a gradual easing of lockdown measures, risk sentiment recovered in markets, giving stock markets a boost. The yield on the U.S. 10-year Treasury bond rose to 0.7036%. Immediate resistance can be seen at 1.2369 (5 DMA), an upside break can trigger rise towards 1.2425  (9 DMA).On the downside, immediate support is seen at 1.2303  (Daily low), a break below could take the pair towards 1.2251 (lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Monday as risk appetite was boosted by more countries making moves to re-open their economies, despite the coronavirus continuing to spread. Easing lockdowns is interpreted as positive by traders as it enables economic activity curtailed by the coronavirus to resume. Lifting the lockdowns too early, however, risks triggering another wave of the new coronavirus. At (GMT 12:16), Greenback gained 0.20% versus the Swiss franc to 0.9720. Immediate resistance can be seen at 0.9735 (Daily high), an upside break can trigger rise towards 0.9787 (Higher BB).On the downside, immediate support is seen at 0.9705 (11 DMA), a break below could take the pair towards 0.9695(21 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Monday as demand for riskier assets increased as more countries lifted lockdowns imposed on businesses to curb the spread of the novel coronavirus. Japan plans to end a state of emergency for areas where infections have stabilised, while France is set to cautiously emerge from one of Europe’s strictest lockdowns on Monday. Some countries, such as India, Spain, Italy and parts of the United States, began easing lockdowns last week. Strong resistance can be seen at 107.48 (30 DMA), an upside break can trigger rise towards 107.73 (55 DMA).On the downside, immediate support is seen at 107.13 (20 DMA), a break below could take the pair towards 106.66 (5DMA). 

Equities Recap

European stocks gave up early gains on Monday, with travel and oil stocks taking a hit even as several countries emerged from coronavirus-driven lockdowns.

At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 0.45 percent, Germany's Dax was down by 1.25 percent, France’s CAC finished was down by 1.63 percent.

Commodities Recap

Gold prices rose on Monday as bullion’s safe-haven appeal was boosted by worries about a new wave of coronavirus infections, which reinforced expectations of more stimulus measures and lower interest rates.

Spot gold gained 0.3% to $1,705.73 per ounce by 0742 GMT, having lost about 1% in the previous session. U.S. gold futures eased 0.3% to $1,708.

Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers.

Brent crude futures were down 29 cents, or 0.9%, at $30.68 a barrel by 0431 GMT, while U.S. West Texas Intermediate crude futures fell 17 cents, or 0.7%, to $24.57 a barrel.

Treasuries Recap

Borrowing costs across the euro area nudged higher on Monday, reflecting a slightly more upbeat tone in world markets as more countries look to restart their economies after coronavirus lockdowns.

Germany’s benchmark 10-year Bund yield was up 1.5 basis points in early trade at -0.52%, not far off 1-1/2 month lows hit at the end of April.Ten-year bond yields in Italy were also 1.5 bps higher, trading at 1.8%.
        
 

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