Market Roundup
• German May Industrial Production (MoM)7.8%,10.0% forecast, -17.9% previous
• French May Current Account -8.50B, -5.40B previous
• French May Exports 27.7B, 23.7B previous
• French May French Imports 34.7B, 28.7B previous
• French May Trade Balance -7.1B, -5.0B previous
• French June Reserve Assets Total 197,166.0M, 217,404.0M previous
• UK Halifax House Price Index (YoY) 2.5%,2.6% previous
• UK June Halifax House Price Index (MoM) -0.1%,-0.9% forecast, -0.2% previous
• Italian May Retail Sales (YoY) -10.5%,-28.6% previous
• Italian May Italian Retail Sales (MoM) 24.3%,-11.5% previous
• UK Labour Productivity (Q1) -0.6%,0.3% previous
Looking Ahead - Economic Data (GMT)
• 12:55 US Redbook (MoM) -0.7% previous
• 12:55 US Redbook (YoY) -5.7% previous
• 14:00 Canada June Ivey PMI 39.1 previous
• 14:00 US May JOLTs Job Openings 4.850M, 5.046M previous
•14:00 Canada June Ivey PMI n.s.a 42.1 previous
•15:20 New Zealand GlobalDairyTrade Price Index 1.9% previous
Looking Ahead - Economic events and other releases (GMT)
• 13:00 US FOMC Member Bostic Speaks
• 17:00 US FOMC Member Quarles Speaks
• 17:00 US FOMC Member Daly Speaks
• 18:00 US FOMC Member Barkin Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as forecasts for a deeper-than-feared recession in the euro zone dimmed optimism post-Coronavirus pandemic. The European Commission said the 19 nation single currency area would contract by a record 8.7% this year before rising by 6.1% in 2021. In early May, the Commission had forecast a downturn of 7.7% this year and a rebound in 2021 of 6.3%. Immediate resistance can be seen at 1.1344 (July 6th high), an upside break can trigger rise towards 1.1381 (Higher BB).On the downside, immediate support is seen at 1.1297 (23.6% fib), a break below could take the pair towards 1.1260 (Daily low).
GBP/USD: Sterling held near a three-week high against the dollar on Tuesday as investors waited for more details of the government’s plans to support the British economy. Despite the pound’s gains, some investors remained cautious about the currency’s outlook. Positioning data showed hedge funds increasing their bearish bets on the British pound, as the UK and European Union try to reach a trade agreement in their Brexit negotiations. Immediate resistance can be seen at 1.2535 (38.2% fib), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2431 (14 DMA), a break below could take the pair towards 1.2412 (55 DMA).
USD/CHF: The dollar gained against the Swiss franc on Tuesday as risks from rising coronavirus cases offset strong economic data and kept a lid on confidence in an economic recovery from the COVID-19 pandemic. Following a Monday slide, the greenback was steady on most majors and clung on near a two-week low against a basket of currencies. Investors are watching nervously as infections surge in the United States and India, but are so far taking the view that more massive lockdowns are unlikely. Immediate resistance can be seen at 0.9449 (38.2% fib), an upside break can trigger rise towards 0.9469 (14 DMA).On the downside, immediate support is seen at 0.9395 (Lower BB), a break below could take the pair towards 0.9339 (23.6% fib).
USD/JPY: The dollar gained against the Japanese yen on Tuesday as yen was pressured by a rise in demand for the dollar, as investors took a breather from stocks and other riskier investments after several days of gains. A sharp rebound in U.S. services industry activity in June, almost returning to pre-pandemic levels, also helped appetite for dollar. At 1215 GMT, the dollar was 0.34 percent lower versus the Japanese yen at 107.70 Strong resistance can be seen at 107.81 (Higher BB), an upside break can trigger rise towards 108.03 (Higher BB).On the downside, immediate support is seen at 107.28 (50% fib ), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares fell on Tuesday as surging U.S. coronavirus cases and forecasts for a deeper-than-feared recession in the euro zone dimmed optimism around a post-pandemic rebound.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 1.35 percent, Germany's Dax was down by 1.25 percent, France’s CAC finished was down by 0.88 percent.
Commodities Recap
Gold fell on Tuesday in the face of competition from safe haven inflows into the dollar as COVID-19 cases increased globally and investors booked profits following bullion’s rally to a near eight-year peak.
Spot gold fell 0.4% to $1,776.43 per ounce by 959 GMT. It earlier touched a high of $1,786.91, $2.05 shy of Wednesday’s near eight-year peak of $1,788.96. U.S. gold futures fell 0.5% to $1,784.00 per ounce.
Oil prices fell on Tuesday amid concerns that a surge in new coronavirus cases, especially in the United States, will hamper any recovery in fuel demand.
Brent crude futures declined by 44 cents, or 1.02%, to $42.66, by 0935 GMT, after hitting a high of $43.19.
U.S. West Texas Intermediate (WTI) crude futures fell 53 cents, or 1.3%, to $40.10 a barrel, after a high of $40.79.
Treasuries Recap
Italian 10-year government bond yields were clinging to recent three-month lows on Tuesday as traders awaited signs of progress from talks this week in Brussels on a European recovery fund.
Italian 10-year BTP yields were last trading down 1.7 basis points at 1.29%, not far from 1.25%, the three-month low they last fell to on Friday.
German 10-year Bund yields also fell by 1.5 bps to -0.448% , having touched earlier a six-day low of -0.457%.
