Market Roundup
• French Non-Farm Payrolls (QoQ) (Q1) -2.0%, -2.3% forecast, 0.4% previous
• Sweden May CPI (YoY) 0.0%,-0.4% forecast, -0.4% previous
• Sweden May CPI (MoM) 0.6%,0.4% forecast, -0.3% previous
• Italian April Industrial Production (MoM) -19.1%,-24.0% forecast, -28.4% previous
• Italian April Industrial Production (YoY) -42.5%, -40.0% forecast, -29.3% previous
• Greek March Unemployment Rate 14.4%,16.1% previous
• France June Thomson Reuters IPSOS PCSI 40.35, 38.77 previous
• Irish May CPI (MoM) -0.5%,-0.4% previous
• Irish May HICP (YoY) -0.8%,-0.3% previous
• Irish May CPI (YoY) -0.5%, -0.1% previous
Looking Ahead – Economic Data (GMT)
• 12:30 US Jobless Claims 4-Week Avg 2,284.00K previous
• 12:30 US Continuing Jobless Claims 20,000K forecast, 21,487K previous
• 12:30 US Initial Jobless Claims 1,550K forecast , 1,877K previous
• 12:30 US Core PPI (YoY) 0.4%, 0.6% previous
• 12:30 US May Core PPI (MoM) -0.1% forecast,-0.3% previous
• 12:30 US May PPI (YoY) -1.2% forecast, -1.2% previous
• 12:30 US May PPI (MoM) 0.1% forecast, -1.3% previous
• 13:00 Russia April Trade Balance 5.76B forecast, 9.31B previous
• 13:00 Russia Central Bank reserves (USD) 563.9B previous
• 14:30 US Natural Gas Storage 93B forecast, 102B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Thursday as the U.S. Federal Reserve’s dour economic outlook spooked investors. The moves recouped the greenback’s initial losses after the Fed’s policy stance, projecting rates near zero for years, was welcomed as a sign of its continued support for asset prices. The euro which hit a three month peak overnight put up the best fight against dollar, sliding only 0.27%. Immediate resistance can be seen at 1.1358 (Daily high), an upside break can trigger rise towards 1.1420 (Higher BB).On the downside, immediate support is seen at 1.1324 (5 DMA), a break below could take the pair towards 1.1250 (9 DMA).
GBP/USD: The pound fell against the dollar on Thursday as Brexit-related concerns and speculation about negative rates weighed on sterling again. The pound had risen 3.9% against the dollar in 10 consecutive days of gains starting on May 28 - its longest winning streak since January 2018. The dollar bounced against riskier currencies after the U.S. Federal Reserve’s economic outlook spooked investors. Versus the dollar, the pound fell as much as 0.8% on the day to $1.2651 at 0710 GMT, having risen to a three-month high above $1.28 on Wednesday. Immediate resistance can be seen at 1.2778 (5 DMA), an upside break can trigger rise towards 1.2816 (Higher BB).On the downside, immediate support is seen at 1.2586 (9 DMA), a break below could take the pair towards 1.2509 (38.2% fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday as sobering outlook from the U.S. Federal Reserve challenged market optimism on the global economy. The Fed predicted the U.S. economy would shrink 6.5% in 2020 and unemployment would still be at 9.3% at year’s end. Fed Chair Jerome Powell said he was not even thinking about thinking about raising rates. Instead, he emphasised recovery would be a long road and that policy would have to be proactive with rates near zero out to 2022. Immediate resistance can be seen at 0.9443 (38.2% fib), an upside break can trigger rise towards 0.9531 (50% fib).On the downside, immediate support is seen at 0.9400 (Psychological level), a break below could take the pair towards 0.9338 (23.6% fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as expectations that the global economy will recover swiftly from the coronavirus pandemic took a beating after a U.S. central bank policy meeting. The Federal Reserve signaled it plans years of extraordinary support for the U.S. economy, which policymakers project will shrink by 6.5% in 2020, that the unemployment rate will be 9.3% at the end of this year, and that interest rates are expected to remain near zero until the end of 2022. Strong resistance can be seen at 107.50 (30 DMA), an upside break can trigger rise towards 108.07 (38.2% fin).On the downside, immediate support is seen at 106.73 (50% fib), a break below could take the pair towards 106.50 (Lower BB).
Equities Recap
European shares moved further away from their three-month peak on Thursday after a downbeat economic outlook from the U.S. Federal Reserve and on worries of a second wave of COVID-19 cases.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 2.73 percent, Germany's Dax was down by 2.74 percent, France’s CAC finished was down by 2.84 percent.
Commodities Recap
Gold eased on Thursday as investors booked profits after prices rose to a more than one-week high on bleak economic projections from the U.S. Federal Reserve.
Spot gold was down 0.5% at $1,728.40 per ounce by 0634 GMT, after hitting its highest since June 2 at $1,739.68 earlier in the session. U.S. gold futures climbed 1% to $1,737.80.
Oil prices fell on Thursday, hit by another record build-up in U.S. crude inventories and the U.S. Federal Reserve’s projections that the world’s biggest economy would shrink 6.5% this year.
Brent crude futures erased Wednesday’s gains, falling 3.6%, or $1.50, to $40.23 a barrel by 0802 GMT. U.S. West Texas Intermediate (WTI) crude dropped 4%, or $1.57, to $38.03 a barrel.
Treasuries Recap
Euro zone government bonds rallied on Thursday after the U.S. Federal Reserve signalled it plans years of extraordinary support to counter the economic fallout from the coronavirus pandemic and markets digested a deluge of issuance from lower-rated states.
Germany’s 10-year benchmark fell to an eight-day low at -0.38%, falling 5 basis points on the day. German Bunds followed U.S. Treasuries, which rallied on the Fed meeting and are down around 13 bps over the last two sessions.
