Posted at 14 May 2020 / Categories Market Roundups
Market Roundup
• German April HICP (YoY) 0.8%,0.8% forecast, 1.3% previous
• German April WPI (YoY) -3.5%, -1.5% previous
• German April WPI (MoM) -1.4%, -0.4% previous
• German April HICP (MoM) 0.4%, 0.4% forecast, 0.1% previous
• German April CPI (MoM) 0.4%,0.3% forecast, 0.1% previous
• German April CPI (YoY) 0.9%,0.8% forecast, 1.4% previous
• Swiss April PPI (YoY) -4.0%,-2.7% previous
• Swiss April PPI (MoM) -1.3%,-0.3% previous"
• Spanish April CPI (MoM) 0.3%,0.3% forecast, -0.4% previous
• Spanish April HICP (YoY) -0.7% , -0.6% forecast, 0.1% previous
• Italian March Trade Balance EU 0.60B, 1.02B previous
• Italian March Trade Balance 5.685B, 6.085B previous
• Irish April CPI (MoM) -0.4%,0.4% previous
• Irish April HICP (MoM) -0.4%, 0.4% previous
Looking Ahead Economic Data
• 12:30 US Continuing Jobless Claims 25,100K forecast, 22,647K previous
• 12:30 US Jobless Claims 4-Week Avg 4,173.50K previous
• 12:30 US Initial Jobless Claims 2,500K forecast, 3,169K previous
• 12:30 Canada March Manufacturing Sales (MoM) -5.7% forecast, 0.5% previous
• 12:30 US Import April Price Index (MoM) -3.1% forecast, -2.3% previous
• 12:30 US Export April Price Index (MoM) -2.1% forecast, -1.6% previous
• 13:00 Russia Central Bank Reserves (USD) 567.3B previous
Looking Ahead - Events, Other Releases (GMT)
• 14:30 Canaada BoC Financial System Review
• 15:00 ECB's De Guindos Speaks
• 15:00 Canada BoC Gov Poloz Speaks
•17:00 US FOMC Member Kashkari Speaks
• 22:00 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro declined on Thursday as global markets remained wary of a second wave of coronavirus infections, while investors focused on ECB’s policy response to the pandemic. The European Central Bank released its latest economic bulletin, where it reiterated the message that it stands ready to do everything necessary to support the euro area during the coronavirus crisis. ECB policymaker Luis de Guindos is also scheduled to speak later in the session and is expected to reiterate the message that the ECB is ready to provide more stimulus if necessary. Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling declined against dollar on Thursday as a combination of a stronger dollar and weak UK economic data hurt the British currency. Britain’s economy shrank by a record 5.8% in March as the coronavirus crisis escalated and the government shut down much of the country, according to Wednesday’s official GDP data. An even bigger hit is expected in the coming months. The Bank of England said last week that the contraction of the economy in the April-June period could approach 25% and lead to the largest annual decline in more than three centuries. Immediate resistance can be seen at 1.2241 (Daily high), an upside break can trigger rise towards 1.2273 (5 DMA).On the downside, immediate support is seen at 1.2179 (Daily low), a break below could take the pair towards 1.2144 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday after U.S. Federal Reserve Chairman Jerome Powell dismissed speculation that policymakers will adopt negative interest rates. Powell is the latest in a parade of policymakers to brush off the notion that they might push rates into negative territory, after Fed futures began pricing a small chance of sub-zero U.S. rates within the next year. Immediate resistance can be seen at 0.9756 (Daily high), an upside break can trigger rise towards 0.9800 (Higher BB).On the downside, immediate support is seen at 0.9715 (5 DMA), a break below could take the pair towards 0.9706 (21 DMA).
USD/JPY: The dollar rose against the Japanese yen Thursday after Federal Reserve Chair Jerome Powell squashed growing speculation about negative interest rates in the United States and warned of an “extended period” of weak economic growth. Powell's comments sent investors moving to the relative safety of the greenback, with the dollar index rising to a near three-week high. Markets focus now shifts to weekly U.S. jobless claims data due at 1230 GMT for more clarity about the economic outlook. Strong resistance can be seen at 107.07 (21 DMA), an upside break can trigger rise towards 107.45 (30 DMA).On the downside, immediate support is seen at 106.69 (Ichimoku Cloud Base), a break below could take the pair towards 106.00(Psychological level).
Equities Recap
European shares retreated on Thursday as comments from U.S. officials fanned concerns of a prolonged economic downturn due to the coronavirus outbreak, while investors eyed the prospect of a second wave of infections fearfully.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading down at 2.99 percent, Germany's Dax was down by 2.63 percent, France’s CAC finished was down by 2.75 percent.
Commodities Recap
Gold held steady on Wednesday as concerns over prolonged economic weakness due to the coronavirus outbreak countered a strength in U.S. dollar after the Federal Reserve dashed hopes of sub-zero interest rates.
Spot gold was mostly unchanged at $1,715.03 per ounce by 0916 GMT. U.S. gold futures rose 0.5% to $1,724 per ounce.
Oil prices climbed on Thursday following an unexpected drop in U.S. crude stocks, but gains were capped by a bleak outlook for the world’s No. 1 economy as the coronavirus pandemic crushes fuel demand, and concern over a potential second wave of cases.
Brent crude futures were up 18 cents, or 0.6%, at $29.37 per barrel at 0621 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 23 cents, or 0.9%, at $25.52 a barrel.
Treasuries Recap
Euro zone bond yields fell further on Thursday as global markets remained wary of a second wave of coronavirus infections, while European analysts focused on the policy response to the pandemic.
Safe-haven 10-year German bond yields fell 1 basis point to -0.54%. Italian 10-year bond yields were unchanged at 1.81% after falling to a near 10-day low at 1.79% earlier in the session.