• Europe roundup: Sterling rises to three-week highs on news of Brexit talks, European shares slip, Gold steadies, Oil stable as rising virus cases, higher U.S. Crude stockpiles stall recovery-july 8th,2020

    Source: FxWire Pro - Media Round Ups / 08 Jul 2020 08:54:22   America/New_York

    Market Roundup

    • Swiss June Unemployment Rate n.s.a.  3.2%,3.4% forecast,3.4% previous

    • Swiss June Unemployment Rate s.a.  3.3%, 3.6% forecast, 3.4% previous

    •US MBA Purchase Index 325.2, 308.7 previous

    •US Mortgage Refinance Index 3,373.9, 3,359.2 previous

    •US MBA 30-Year Mortgage Rate 3.26%,3.29% previous

    • Brazil May Retail Sales (YoY) 13.9%, -12.1% forecast,-16.8% previous

    • Brazil May Retail Sales (MoM)  -7.2%, 6.0%,-16.8% previous

    Looking Ahead - Economic Data (GMT) 

    •13:00 Russia June CPI (YoY)  3.2% forecast, 3.0% previous

    •13:00 Russia June CPI (MoM)  0.3% forecast,0.3% previous

    •13:00 Russia June CPI (MoM)  0.3% forecast, 0.3% previous

    •13:00 Russia June CPI (YoY)  3.0% forecast, 3.0% previous

    •13:30 US Seevol Cushing Storage Report -1.637M previous

    •14:30 US Gasoline Production 0.111M previous

    •14:30 US Crude Oil Inventories -3.114M forecast, -7.195M previous

    •19:00 US May Consumer Credit  -15.50B forecast, -68.78B previous

    Looking Ahead - Economic events and other releases (GMT)

    • 14:00 ECB's De Guindos Speaks

    •17:45 German Buba Vice President Buch Speaks

    •16:15 US FOMC Member Bostic Speaks

    Fxbeat

    EUR/USD: The euro edged higher against dollar on Wednesday as dollar moved lower on concerns over rising coronavirus cases. Risk sentiment was also undermined after Federal Reserve officials expressed concern that rising coronavirus cases could harm economic growth just as stimulus measures start to expire. The euro strengthened a modest 0.12% to $1.2890   while a recent fall in selling positions against the greenback provided room for possible further drops.  Immediate resistance can be seen at 1.1300 (23.6% fib), an upside break can trigger rise towards 1.1355 (Higher BB).On the downside, immediate support is seen at 1.1246 (11 DMA), a break below could take the pair towards 1.1183  (38.2%fib).

    GBP/USD: Sterling gained against the dollar on Wednesday as talks resumed between the Britain and the European Union on terms for their future trade relations. The pound held on a nearly three-week high as traders awaited an announcement on Wednesday by British finance minister Rishi Sunak of his next moves to prevent a wave of job cuts from damaging an already weakened economy. Immediate resistance can be seen at 1.2575 (38.2% fib), an upside break can trigger rise towards 1.2675 (Higher BB).On the downside, immediate support is seen at 1.2506  (30 DMA), a break below could take the pair towards 1.2416  (55 DMA).

     USD/CHF: The dollar declined against the Swiss franc on Wednesday as investors weighed hopes for a swift economic recovery against fears about a resurgence in the pandemic, particularly in the United States. Demand for the U.S. currency as a safe haven ticked down as oil prices eased on oversupply fears, stocks dithered in Asia and European bourses opened in negative territory. Immediate resistance can be seen at 0.9447 (38.2% fib), an upside break can trigger rise towards 0.9469 (21 DMA).On the downside, immediate support is seen at 0.9388 (Lower BB), a break below could take the pair towards 0.9343 (23.6% fib).

    USD/JPY: The dollar declined against the Japanese yen on Wednesday as an increase in new coronavirus cases in some parts of the world undermined prospects for a quick economic recovery. California reported more than 10,000 coronavirus cases on Tuesday, a record rise for a single day. That exceeded the number of contact tracers recently trained by the state to detect and prevent potential outbreaks. Coronavirus cases were also on the rise in the Australian state of Victoria, which led to lockdown measures being re-imposed in Melbourne, the country’s second-biggest city. Strong resistance can be seen at 107.76 (100 DMA), an upside break can trigger rise towards 108.03 (Higher BB).On the downside, immediate support is seen at 107.28 (50% fib ), a break below could take the pair towards 107.00 (Psychological level).

    Equities Recap

    European shares opened lower on Wednesday, with banks and energy firms leading the declines as surging coronavirus infections globally dimmed the prospect of a swift economic recovery.

    At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.40 percent, Germany's Dax was down by 0.64 percent, France’s CAC finished was down by 1.00 percent.

    Commodities Recap

    Gold held steady near a more than eight-year high on Wednesday, with investors hitting pause on a rally fuelled by a surge in coronavirus cases and hopes of more stimulus measures from the U.S. Federal Reserve.

    Spot gold was little changed at $1,794.62 per ounce by 0459 GMT, after hitting its highest since November 2011 at $1,796.93 on Tuesday, just a few dollars away from the key level of $1,800.U.S. gold futures eased 0.1% to $1,807.80.

    Oil prices were broadly stable for a fourth session on Wednesday, with rising U.S. crude stockpiles and an increase in U.S. coronavirus infections arresting a recent recovery sparked by easing lockdowns.

    Brent crude futures rose 10 cents to $43.18 a barrel by 1135 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 3 cents at $40.65 a barrel.

    Treasuries Recap

    German government bond yields slipped towards a one-week low on Wednesday as weaker global stock markets prompted a bout of risk aversion after a rally in risky assets in recent weeks.

    Yields of German 10-year government debt edged 2 basis points lower to -0.477%, just above a one-week low of -0.495%.

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