Posted at 04 August 2020 / Categories Market Roundups
Market Roundup
•13;00 French 12-Month BTF Auction -0.560% ,-0.556% previous
• 13;00 French 6-Month BTF Auction-0.590% ,-0.562% previous
•13;00 French 3-Month BTF Auction -0.574% ,-0.565% previous
•13:45 US Jul Manufacturing PMI 50.9, 51.3 forecast, 49.8 previous
•14:00 US Jul ISM Manufacturing Prices 53.2, 52.0 forecast, 51.3 previous
•14:00 US Jul ISM Manufacturing Employment 44.3, 48.3 forecast, 42.1 previous
•14:00 US Jul ISM Manufacturing PMI 54.2 ,forecast 53.6, 52.6 previous
•14:00 US Jul Construction Spending (MoM) -0.7%, 1.0% forecast, -2.1% previous
•14:00 US Jul ISM Manufacturing New Orders Index 61.5, 56.4 previous
•15:30 US 3-Month Bill Auction 0.100%, 0.105% previous
•15:30 US 6-Month Bill Auction 0.105%, 0.130% previous
Looking Ahead Economic Data
• 23:30 Japan Jul CPI Tokyo Ex Food and Energy (MoM) -0.2% previous
• 23:30 Jul Japan Jul Tokyo CPI (YoY) 0.3% previous
• 23:30 Jul Japan Tokyo Core CPI (YoY) 0.2%forecast, 0.2% previous
• 01:00 Australia Jul Trade Balance 8.800B forecast, 8.025 previous
• 01:00 Australia Exports (MoM) -4% previous
• 01:00 Australia Jul Imports (MoM) -6% previous
• 01:30 Australia Retail Sales (MoM) 2.4% forecast, 16.9% previous
• 01:30 Australia Aug RBA Interest Rate Decision 0.25% forecast,0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 04:30 Australia RBA Rate Statement
Currencies Summaries
EUR/USD: The euro dipped against dollar on Monday as rising coronavirus cases and concerns over the U.S. economy weighed on investor sentiment. Investors were nervous at the lack of a new stimulus package in the United States with White House Chief of Staff Mark Meadows not optimistic on reaching agreement soon on a deal.A Bank of England rate decision on Thursday and U.S. jobs data on Friday will also keep investors on the sidelines. Immediate resistance can be seen at 1.1793 (38.2% fib), an upside break can trigger rise towards 1.1829 (23.6%fib).On the downside, immediate support is seen at 1.1689 (Daily low), a break below could take the pair towards 1.1676 (11DMA).
GBP/USD: The pound fell against a stronger dollar on Monday as investors weighed the government’s strategy of local lockdowns and looked ahead to the Bank of England’s policy meeting on Thursday. The pound reached $1.3170 - its highest in nearly five months - on Friday, benefiting from investor caution about rising COVID-19 cases in the United States and data suggesting the economic recovery there was losing momentum. But on Monday the dollar strengthened, pushing cable down to $1.3074 .Immediate resistance can be seen at 1.3113 (Daily high), an upside break can trigger rise towards 1.3174 (23.6%fib).On the downside, immediate support is seen at 1.2959 (38.2%fib), a break below could take the pair towards 1.2886(11 DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as upbeat US manufacturing data boost dollar. Manufacturing activity in US accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections. The Canadian dollar was trading 0.03% lower at 1.3394 to the greenback. The currency touched its weakest intraday level since 1st August. Immediate resistance can be seen at 1.3435 (23.6%fib), an upside break can trigger rise towards 1.3471 (21 DMA).On the downside, immediate support is seen at 1.3361 (31st July low), a break below could take the pair towards 1.3300 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as upbeat U.S. economic data boosted greenback. Manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections, the Institute for Supply Management said. The dollar index rose 0.151,while Japanese yen weakened 0.10% versus the greenback at 106.05 per dollar. Strong resistance can be seen at 106.45 (Daily high), an upside break can trigger rise towards 107.64 (61.8% fib).On the downside, immediate support is seen at 105.59 (Daily low), a break below could take the pair towards 105.08 (38.2%fib).
Equities Recap
Equities Recap
A modest expansion in euro zone manufacturing activity and hopes of fresh U.S. stimulus lifted European stocks across the board on Monday, with automakers, miners and construction & material firms leading the gains.
UK's benchmark FTSE 100 closed up by 2.29 percent, Germany's Dax ended up by 2.73 percent, France’s CAC finished the day up by1.93 percent.
Wall Street rallied on Monday as a rebound in multibillion-dollar deals, including Microsoft’s pursuit of TikTok’s U.S. operations, lifted sentiment, and efforts to hammer out a coronavirus relief bill resumed.
Dow Jones closed up by 0.89% percent, S&P 500 closed up by 0.72% percent, Nasdaq settled up by 1.47% percent.
Treasuries Recap
The Treasury yield curve steepened on Monday, an indication of improved investor sentiment, after an Institute for Supply Management (ISM) report showed that U.S. manufacturing activity rose to a 1-1/2 year high in July.
The long end of the yield curve was higher, with the benchmark 10-year yield last up 2.3 basis points and the 30-year yield last up 4.3 basis points. At the short end, the two-year and five-year yields were up less than a basis point.
Commodities Recap
Gold prices retreated from a record high on Monday after the dollar strengthened and investors booked some profits, with the focus now on proposals for new U.S. coronavirus aid to extend relief benefits to jobless Americans.
Spot gold fell 0.3% to $1,969.74 per ounce at 12:33 p.m. EDT (1633 GMT), having earlier hit a record high of $1,984.66. U.S. gold futures eased 0.1% at $1,984.10.
Oil prices were up more than 1% on Monday on positive economic data from the United States, Europe and Asia, but investors remained concerned about rising COVID-19 cases globally and oversupply as OPEC begins to lift supply cuts.
Brent crude settled at $44.15 a barrel, rising 63 cents, or 1.5%. U.S. West Texas Intermediate (WTI) crude rose 74 cents, or 1.8%, to end at $41.01 a barrel.