News

Europe Roundup: Euro buoyed as investor sentiment improves, European shares gain,Gold eases, Oil prices climb as faith in supply cuts grows-May 26th,2020

Market Roundup

• German June GfK German Consumer Climate -18.9, -18.3 forecast, -23.4 previous

• Swiss April Trade Balance 4.043B, 0.004B previous

• Swiss Employment Level (Q1) 5.102M , 5.130M previous

• UK May CBI Distributive Trades Survey -50, -50 forecast, -50 previous

Looking Ahead Economic Data

• 13:00 US April Chicago Fed National Activity -4.19 previous

• 13:00 US House Price Index (MoM) ) 0.7% previous

• 13:00 US March S&P/CS HPI Composite – 20 s.a. (MoM) 0.2% forecast ,0.4% previous

• 13:00 Russia April Unemployment Rate 5.5% forecast , 4.7% previous

• 13:00 US March House Price Index (YoY) 5.7% previous

• 13:00 US March S&P/CS HPI Composite – 20 n.s.a. (YoY) 3.3%,3.5% previous

• 13:00 US March S&P/CS HPI Composite – 20 n.s.a. (MoM) 0.5% previous

• 13:00 Russia April Retail Sales (YoY) -15.0% forecast, 5.6% previous

• 13:00 Russia March Russian Real Wage Growth (YoY) -7.0% forecast, 5.7% previous

• 14:00 US May CB Consumer Confidence 88.0 forecast, 86.9 previous

• 14:00 US April New Home Sales 490K forecast, 627K previous

• 14:00 US New Home Sales (MoM) -21.9% forecast, -15.4% previous

• 14:00 US May Dallas Fed Mfg Business Index -73.7 previous

• 14:00 Russia GDP Monthly (YoY) 0.9% previous

Looking Ahead – Events, Other Releases (GMT)

• 17:00 US FOMC Member Kashkari Speaks

Fxbeat

EUR/USD: The euro edged higher on Tuesday as euro got a boost from a weaker dollar as growing optimism about a global economic recovery from the COVID-19 pandemic supported riskier currencies, though Sino-U.S. tensions kept the mood in check. The euro was last up 0.6% at $1.0960, having rallied to $1.0973, its strongest since Thursday, while the dollar was down by 0.5% against a basket of currencies at 99.21. Immediate resistance can be seen at 1.0972 (23.6% fib), an upside break can trigger rise towards 1.1060 (50% fib).On the downside, immediate support is seen at 1.0877(21 DMA), a break below could take the pair towards 1.0835 (23.6% fib).

GBP/USD: Sterling rose against a weaker dollar on Tuesday after Prime Minister Boris Johnson set out plans to reopen thousands of high street shops, department stores and shopping centres next month. Johnson said at a news conference on Monday that outdoor markets and car showrooms could reopen from June 1 and all other non-essential retail from June 15 if the government’s tests are met. The pound was last at a six-day high against a weaker dollar, of $1.2265, up 0.6% Immediate resistance can be seen at 1.2336 (30 DMA), an upside break can trigger rise towards 1.2448(50% fib).On the downside, immediate support is seen at 1.2260 (38.2% fib), a break below could take the pair towards 1.2225 (5 DMA).

USD/CHF: The dollar declined against the Swiss franc on Tuesday as growing concerns of COVID-19 and Sino-U.S. tensions kept the mood in check. Trade, the handling of the pandemic and China’s move to impose laws on Hong Kong are all seen as potential catalysts for a further deterioration in already testy U.S.-China relations. At ( GMT 12:00),greenback edged lower 0.57% versus the Swiss franc to 0.9657 Immediate resistance can be seen at 0.9708 (38.2% fib) upside break can trigger rise towards 0.9783 (23.6% fib).On the downside, immediate support is seen at 0.9648(50 % fib), a break below could take the pair towards 0.9587(61.8% fib).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as lingering trade tensions between the United States and China increased demand for yen. White House National Security Adviser Robert O’Brien warned that the proposed legislation could lead to U.S. sanctions on Hong Kong and China, and threaten the city’s status as a financial hub. Market participants are waiting for the U.S. consumer confidence report due at 1400 GMT. Strong resistance can be seen at 107.68 (38.2% fib), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.21 (30 DMA), a break below could take the pair towards 106.42 (50% Fib).

Equities Recap

European shares hovered near a 11-week high on Tuesday, with UK markets surging after a long weekend, as businesses worldwide gradually reopened following a months-long lockdown.

At (GMT 12:00),UK’s benchmark FTSE 100 was last trading up at 0.99 percent, Germany’s Dax was up by 0.61percent, France’s CAC was trading up by 1.05 percent.

Commodities Recap

Gold prices edged lower on Tuesday as hopes of economic recovery lifted share markets with many countries easing coronavirus-driven lockdowns, although Sino-U.S. tensions over Hong Kong limited bullion’s losses.

Spot gold was down 0.2% at $1,725.25 per ounce by 1046 GMT. U.S. gold futures fell 0.6% to $1,724.60.

Oil prices rose on Tuesday, supported by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up as coronavirus lockdowns ease.

Brent crude futures were up 1.5%, or 53 cents, at $36.06 a barrel by 1100 GMT.U.S. West Texas Intermediate (WTI) crude futures gained 2.5%, or 84 cents, to $34.09. There was no WTI settlement on Monday because of the U.S. Memorial Day holiday.


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