Market Roundup
•US Weekly unemployment claims fall below 1 million
•US Import Price Index (YoY) -3.3%,-3.8% previous
•US Export Price Index (YoY) -4.4%, -4.4% previous
• US Jobless Claims 4-Week Avg 1,252.75K, 1,337.75K previous
• US Continuing Jobless Claims15,486K, 15,898K forecast, 16,107K previous
•US Initial Jobless Claims 963K, 1,120K forecast, 1,186K previous
•US Jul Export Price Index (MoM) 0.8%, 0.4% forecast, 1.4% previous
•US Jul Import Price Index (MoM) 0.7%, 0.6% forecast,1.4% previous
•Russia Central Bank reserves (USD) 600.7B, 591.8B previous
•US Natural Gas Storage 58B, 57B forecast, 33B previous
Looking ahead economic data (GMT)
•22:30 New Zealand Jul Business NZ PMI 56.3 previous
•23:50 Japan Foreign Bonds Buying 1,146.4B previous
•23:50 Foreign Investments in Japanese Stocks previous
•23:50 Japan Foreign Bonds Buying 1,146.4B previous
•02:00 China July House Prices (YoY) 0.1%,-1.8% previous
• 02:00 China Retail Sales (YoY) 0.1%, -1.6% previous
• 02:00 China Fixed Asset Jul Investment (YoY) -1.6%,-3.1% previous
• 02:00 China Industrial Production (YoY) 5.1%, 4.8% previous
• 02:00 Chinese Jul Industrial Production YTD (YoY) -1.3% previous
• 02:00 Chinese Unemployment Rate5.7% previous
Looking Ahead - Events, Other Releases (GMT)
•Australia RBA Governor Lowe Speaks
Currencies Summaries
EUR/USD: The euro gained on Thursday as dollar lost ground as hopes of more stimulus in the United States waned, while investors awaited a meeting between Washington and Beijing to discuss the Phase 1 trade deal over the weekend. The U.S. dollar, which is already weighed down by a decline in Treasury yields, fell further as investors remained unsure that there would be a compromise between Republicans and Democrats over additional coronavirus aid. Immediate resistance can be seen at 1.1858 (Daily high), an upside break can trigger rise towards 1.1923 (23.6%fib).On the downside, immediate support is seen at 1.1804 (April 21 st low), a break below could take the pair towards 1.1777 (5DMA).
GBP/USD: Sterling rose against the dollar on Thursday as traders shrugged off Wednesday’s dismal economic data but remained cautious about the longer-term outlook for Britain, before Brexit and the end of the UK furlough scheme. Markets were bearish in early trading, with European stocks down and the dollar weaker as investors started to lose hope that the U.S. government would agree on a stimulus deal to support the economy and the millions of workers who have lost their jobs. Immediate resistance can be seen at 1.3116 (Daily high), an upside break can trigger rise towards 1.3176 (23.6% fib).On the downside, immediate support is seen at 1.3044 (14 DMA), a break below could take the pair towards 1.2963 (38.2%fib).
USD/CAD: TheCanadian dollar advanced to its strongest level in nearly six months against the greenback on Thursday as data from the U.S. Labor Department supported optimism on global economic recovery . The number of Americans seeking unemployment benefits dropped below 1 million last week for the first time since the start of the COVID-19 pandemic in the United States, signaling a recovery in the job market was on track. The Canadian dollar was trading 0.3% higher at 1.3208 to the greenback, or 75.71 U.S. cents. The currency touched its strongest intraday level since Feb. 21 at 1.3206. Immediate resistance can be seen at 1.3300 (5 DMA), an upside break can trigger rise towards 1.3372 (38.2%fib).On the downside, immediate support is seen at 1.3200 (23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Thursday as stalemate in U.S. stimulus talks, trade war angst in both Europe and China and the COVID-19 pandemic increased demand for safe haven yen. Investors remained focused on the stimulus package talks, which broke down last week. Funding for the U.S. Postal Service and to shore up election infrastructure became a major sticking point in congressional talks on coronavirus relief, as President Donald Trump on Thursday vowed to block any money to facilitate mail-in voting.On Wednesday, Trump accused congressional Democrats of not wanting to negotiate over a U.S. coronavirus aid package as Republican and Democratic negotiators traded blame for a five-day lapse in talks over relief legislation. Immediate resistance can be seen at 107.21 (100 DMA), an upside break can trigger rise towards 107.57 (38.2% fib).On the downside, immediate support is seen at 106.37 (50% fib), a break below could take the pair towards 105.75 (14 DMA).
Equities Recap
European stocks snapped a four-day winning run on Thursday as the U.S. government left tariffs on Airbus and a host of other European goods unchanged, while a clutch of blue-chip companies trading ex-dividend knocked the UK’s FTSE 100 lower.
The UK's benchmark FTSE 100 was last trade date down by 1.50 percent, Germany's Dax ended down by 0.50 percent, and France’s CAC finished the down by 0.61 percent.
The S&P 500 and Nasdaq rose on Thursday, with Apple inching toward $2 trillion in market capitalization, as data showed jobless claims fell below one million last week for the first time since the start of the pandemic in United States.
Dow Jones closed down at 0.28 percent, S&P 500 ended down 0.22 percent, Nasdaq finished the day up by 0.27 percent.
Treasuries Recap
U.S. Treasury yields held near five-week highs on Thursday before the Treasury will sell a record amount of 30-year bonds, the final sale of $112 billion in new coupon-bearing supply this week.
Thirty-year bond yields were last up one basis point at 1.375%. They have risen from 1.165% last Thursday, which was the lowest since April 24.
Ten-year yields were at 0.668%. They are up from 0.504% last Thursday, which was the lowest since March 9.
Commodities Recap
Gold jumped over 1% on Thursday, rebounding from a near three-week low hit in the last session, as the dollar dipped and a slow recovery in the U.S. labor market reinforced the economic toll from the coronavirus pandemic.
Spot gold rose 1.5% to $1,947.08 per ounce by 10:58 am EDT (1458 GMT), having slipped below $1,900 on Wednesday. U.S. gold futures rose 0.2% to $1,952.10.
Crude oil prices eased slightly on Thursday but held most of their gains from the previous session after U.S. government data showed a fall in inventories, supporting the view that fuel demand is returning despite the coronavirus pandemic.
Brent crude was down 8 cents at $45.35 a barrel by 0150 GMT, after a gain of around 2% in the previous session. West Texas Intermediate oil was down by 6 cents at $42.61 a barrel after gaining 2.6% on Wednesday.
