Posted at 29 June 2020 / Categories Market Roundups
• Canada May Building Permits (MoM) 20.2%, -17.1% previous
• Canada May IPPI (MoM) 1.2%, -2.3% previous
• Canada May RMPI (YoY) -24.3%, -36.7% previous
• Canada May IPPI (YoY) -4.9%,-6.0% previous
• Canada May RMPI (MoM) 16.4%,-13.4% previous
• US May Pending Home Sales (MoM) 44.3%, 18.9% forecast, -21.8% previous
• US May Pending Home Sales Index 99.6, 69.0 previous
• US June Dallas Fed Mfg Business Index -6.1, -49.2 previous
Looking Ahead – Economic data (GMT)
• 23:30 Japan May Unemployment Rate 2.8% forecast, 2.6% previous
• 23:30 Japan May Jobs/applications ratio 1.23 forecast, 1.32 previous
• 23:50 Japan Industrial Production forecast 1m ahead (MoM) -4.1% previous
• 23:50 Japan Industrial Production forecast 2m ahead (MoM) 3.9% previous
• 23:50 Japan May Industrial Production (MoM) -5.6% forecast, -9.8% previous
• 01:00 China June Manufacturing PMI 50.4 forecast, 50.6 previous
• 01:00 China June Non-Manufacturing PMI 53.6 previous
• 01:00 New Zealand June ANZ Business Confidence -41.8 previous
• 01:00 New Zealand June NBNZ Own Activity -38.7% previous
• 01:00 Australia May Private Sector Credit (MoM) 0.1% previous
• 01:00 Australia May Housing Credit 0.2% previous
Looking Ahead - Economic events and other releases (GMT)
• 02:30 Australia RBA Assist Gov Debelle Speaks
EUR/USD: The euro edged higher on Monday as risk sentiment improved despite a rise in coronavirus cases. Investors have been weighing better economic data against a new uptick in COVID-19 infections. The global death toll from the virus reached half a million on Sunday, according to a Reuters tally. Cases surged in Southern and Western U.S. states, prompting California to order some bars to close in a rollback of efforts to reopen the economy. The next major U.S. economic focus will be Thursday’s jobs report for June. Immediate resistance can be seen at 1.1291 (23.6% fib), an upside break can trigger rise towards 1.1378 (Higher BB).On the downside, immediate support is seen at 1.1215 (Daily low ), a break below could take the pair towards 1.1161(38.2% fib).
GBP/USD: Sterling dipped against the dollar on Monday as investors shifted the focus to how Britain’s government will pay for its planned big infrastructure programme, while Brexit-related risks kept pressure on the pound. Prime Minister Boris Johnson said he would double down on plans to crank up public investment after Home Secretary (interior minister) Priti Patel said the government would roll out a plan on Tuesday to boost spending in infrastructure.After rising on the infrastructure spending promise in earlier trading against a weakening dollar, with investor fears of a fresh U.S. coronavirus wave also weighing, the pound fell 0.1% to 2330 GMT. Immediate resistance can be seen at 1.2390 (9 DMA ), an upside break can trigger rise towards 1.2454 (30 DMA).On the downside, immediate support is seen at 1.2288 (Daily low), a break below could take the pair towards 1.2213 (Lower BB).
USD/CAD: The Canadian dollar was little changed against the greenback on Monday, holding near its weakest level since the start of June as the lingering impact of a ratings downgrade offset evidence that Canada's economy is recovering from the coronavirus crisis. The Canadian dollar was trading nearly unchanged at 1.3689 to the greenback, or 73.05 U.S. cents. The currency traded in a range of 1.3646 to 1.3704, after having touched on Friday its weakest intraday level since June 1 at 1.3715. Immediate resistance can be seen at 1.3708 (June 29th high), an upside break can trigger rise towards 1.3743 (50% fib).On the downside, immediate support is seen at 1.3634 (30 DMA), a break below could take the pair towards 1.3600 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Monday as investors positioned for quarter-end and weighed an increase in coronavirus cases in some U.S. states against improving economic data. Thursday’s jobs report for June was also a factor in portfolio adjustments.U.S. employers are expected to have added 3 million jobs in June, according to the median estimate of economists polled. Projections vary widely among economists, however, from as few as 405,000 jobs to as many as 9 million. Data on Monday showed that contracts to buy U.S. previously owned homes rebounded by the most on record in May. Strong resistance can be seen at 107.55 (38.2% fib), an upside break can trigger rise towards 108.06 (38.2 % fib).On the downside, immediate support is seen at 107.06 (11 DMA), a break below could take the pair towards 106.76 (50% fib).
European shares ended a volatile session higher on Monday, lifted by strong gains on Wall Street and a rally in cyclical stocks as improving data spurred hopes of a faster economic recovery.
UK's benchmark FTSE 100 closed up by 1.01 percent, Germany's Dax ended up by 1.18 percent, France’s CAC finished the day up by 0.73 percent.
Wall Street climbed on Monday and the S&P 500 moved closer to clinching its biggest quarterly gain since 1998 as investors clung to hopes of a stimulus-backed economic rebound, while Boeing shares shot higher to help boost the blue-chip Dow.
Dow Jones closed up by 2.32%percent, S&P 500 closed down by 1.47% percent, Nasdaq settled up by 1.20 % percent.
U.S. Treasury yields on the long end of curve edged higher on Monday as investors, hoping for a stimulus-backed economic rebound, piled into stocks after last week's sharp sell-off.
The benchmark 10-year yield was last up less than a basis point at 0.6413%, while the 30-year yield rose 2.5 basis points to 1.397%.
Gold prices steadied on Monday, holding close to a near eight-year peak scaled last week, as the accelerating spread of the coronavirus threatened to derail hopes of an economic recovery.
Spot gold rose 0.1% to $1,772.39 per ounce by 11:08 a.m. EDT (1508 GMT), but only $6.67 shy of its highest since October 2012 hit last Wednesday.
Oil prices edged higher on Monday, after bullish data from Asia and Europe, but sharp spikes in new coronavirus infections around the world tempered gains.
Brent crude rose 30 cents, or 0.7%, to $41.32 a barrel by 11:12 a.m. EDT (1512 GMT). U.S. crude rose 44 cents, or 1.1%, to $38.93 a barrel.