Market Roundup
• Canada New Housing Price Index (MoM) 0.0%,0.3% previous
• US Initial Jobless Claims 2,438K,2,400K forecast, 2,981K previous
• US Continuing Jobless Claims 25,073K,24,765K forecast, 22,833K previous
• US Jobless Claims 4-Week Avg 3,042.00K, 3,616.50K previous
• Canada ADP Nonfarm Employment Change -226.7K,-177.3K previous
• US May Philadelphia Fed Manufacturing Index -43.1, -41.5 forecast, -56.6 previous
• US May Philly Fed Employment -15.3,-46.7 previous
• US May Philly Fed New Orders -25.7, -70.9 previous
• US May Philly Fed CAPEX Index 15.20 , 12.40 previous
• US May Philly Fed Prices Paid 3.20,-9.30 previous
• US May Philly Fed Business Conditions 49.7, 43.0 previous
• Russia Central Bank Reserves (USD) 562.9B, 562.4B previous
• US May Markit Composite PMI 36.4,27.0 previous
• US Services PMI May 36.9, 30.0 forecast, 26.7 previous
• US May Manufacturing PMI 39.8, 38.0 forecast, 36.1 previous
• US April Leading Index (MoM) 4.4%, -5.5% forecast, -6.7% previous
• US Existing Home Sales (MoM) -17.8% , -18.9% forecast,-8.5% previous
• US April Existing Home Sales 4.33M, 4.30M forecast, 5.27M previous
• US Natural Gas Storage 81B, 83B forecast, 103B previous
Looking Ahead - Events, Other Releases (GMT)
•22:45 New Zealand Retail Sales Quarterly Vs. Year Ago (Q1) 3.3% previous
•22:45 New Zealand Retail Sales (QoQ) (Q1) 0.7% previous
•22:45 New Zealand Core Retail Sales (QoQ) 0.5% previous
•23:30 Japan CPI Apri n.s.a (MoM) -0.2% previous
• 23:30 Japan April National Core CPI (YoY) -0.1% foreast,0.4% previous
• 23:30 Japan April National CPI (YoY) 0.4% previous
• 23:30 Japan National CPI (MoM) 0.0% previous
• 03:00 Japan BoJ Interest Rate Decision -0.10% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro steadied on Thursday after a four-day rising streak that was fuelled by optimism of a closer fiscal union in Europe fizzled out, with U.S.-China tensions and concerning economic data coming to the fore. France and Germany proposed a 500-billion-euro ($543 billion) recovery fund on Monday. The news lifted the euro from the $1.08 levels where it has been languishing for the last two months and pushed it towards $1.10, though the single currency remains more than 4% away from the 2020 highs of $1.15 levels tested in early March.But on Thursday, the euro took a breather, easing down 0.04% to $1.0974 as stock markets across Europe traded in negative territory. Immediate resistance can be seen at 1.1004 (higher BB), an upside break can trigger rise towards 1.1167 (61.8% fib).On the downside, immediate support is seen at 1.0919 (5 DMA), a break below could take the pair towards 1.0831(23.6% fib).
GBP/USD: Sterling edged lower against dollar on Thursday as a combination of weak business activity data and the risk of sub-zero interest rates weighed on the pound. The currency remained under pressure as British five-year government bond yields fell below zero for the first time on Thursday, a day after Britain sold its first government bond with a negative yield.Earlier on Wednesday, IHS Markit’s Flash Composite Purchasing Managers (PMI) data showed Britain’s economy flattened out a bit this month from its nosedive in April caused by the coronavirus lockdown, but remained in the grip of a severe contraction. Immediate resistance can be seen at 1.2337 (21 DMA),an upside break can trigger rise towards 1.2391 (30 DMA).On the downside, immediate support is seen at 1.2201 (5 DMA), a break below could take the pair towards 1.2095 (Lower BB).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, holding on to gains since the start of the week as oil prices rose and investors grappled with rising tensions between the United States and China. U.S. stock indexes seesawed as growing Sino-U.S. tensions and mixed retail earnings added to worries about the pace of a recovery from a coronavirus-fueled economic slump. The Canadian dollar was trading 0.2% higher at 1.3923 to the greenback, its strongest level since May 11. Immediate resistance can be seen at 1.3971 (5 DMA), an upside break can trigger rise towards 1.3995 (50%fib ).On the downside, immediate support is seen at 1.3930 (38.2% fib), a break below could take the pair towards 1.3856 (23.6% fib).
USD/JPY: The dollar gained against the Japanese yen Thursday as weak Japanese export data and Sino-U.S. trade worries lifted dollar against Japanese yen. Japan’s exports fell the most since the 2009 global financial crisis in April as the coronavirus pandemic slammed world demand for cars, industrial materials and other goods, likely pushing the world’s third-largest economy deeper into recession. The U.S. Dollar Currency Index, which measures the greenback’s strength against six major currencies, was up 0.1% at 99.27. Strong resistance can be seen at 107.83 (Daily high), an upside break can trigger rise towards 108.16 (Higher BB).On the downside, immediate support is seen at 107.43 (5 DMA), a break below could take the pair towards 107.15 (11 DMA).
Equities Recap
European shares fell on Thursday, as signs of worsening U.S.-China relations added to concerns over the pace of recovery from the coronavirus-led economic downturn.
UK's benchmark FTSE 100 closed down by 0.77 percent, Germany's Dax ended up by 80 percent, France’s CAC finished the day down by 0.89 percent.
Wall Street receded on Thursday, a day after hitting two-month highs, on a fresh wave of China-U.S. tensions, raising doubts about the trade deal reached early this year between the world’s two largest economies.
Dow Jones closed down by 0.41 percent, S&P 500 ended down by 0.78 percent, Nasdaq finished down by 0.97 percent.
Commodities Recap
Gold fell more than 1% on Thursday as investors booked profits from recent rallies and some switched to the safety of cash driven by growing U.S-China trade tensions and doubts about an economic recovery.
Spot gold was down 1.5% to $1,722.78 per ounce by 2:49 a.m. EDT (1849 GMT), having earlier fallen to $1,716.44. U.S. gold futures settled 1.7% lower at $1,721.90.
Global benchmark Brent rose more than 1% on Thursday to its highest since March, supported by lower U.S. crude inventories, OPEC-led supply cuts and recovering demand as governments ease coronavirus restrictions on people’s movements.
Brent rose 34 cents, or 1%, to settle at $36.09 per barrel. U.S. West Texas Intermediate crude CLc1 closed up 43 cents, or 1.28%, to $33.92.
