|00:00||Japan||BoJ Interest Rate Decision||-0.10%||-0.10%|
|00:00||Japan||BoJ Monetary Policy Statement|
|06:00||United Kingdom||PSNB, bln||April||-2.33||-35|
|06:00||United Kingdom||Retail Sales (YoY)||April||-5.8%||-22.2%|
|06:00||United Kingdom||Retail Sales (MoM)||April||-5.1%||-16%|
|11:30||Eurozone||ECB Monetary Policy Meeting Accounts|
|12:30||Canada||Retail Sales YoY||March||3%|
|12:30||Canada||Retail Sales, m/m||March||0.3%||-10%|
|12:30||Canada||Retail Sales ex Autos, m/m||March||0%||-5%|
|17:00||U.S.||Baker Hughes Oil Rig Count||May||258|
Board announced on Thursday its Leading Economic Index (LEI) for the U.S. fell 4.4
percent m-o-m in April to 98.8 (2016 = 100), following a downwardly revised 7.4
percent m-o-m plunge in March (originally a 6.7 percent m-o-m decline).
Economists had forecast a drop of 5.5 percent m-o-m.
Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board, noted: that the US LEI continued on a downward trajectory in April, after posting the largest decline in its 60-year history in March. “The erosion has been very widespread, except for stock prices and the interest rate spread which partially reflect the rapid and large response of the Federal Reserve to offset the pandemic’s impact and support financial conditions. he added.
The report also revealed the Conference Board Coincident Economic Index (CEI) for the U.S. declined 8.9 percent m-o-m in April to 96.6, following a 1.5 percent m-o-m drop in March. Meanwhile, its Lagging Economic Index (LAG) for the U.S. increased 4.1 percent m-o-m in April to 115.3, following a 1.7 percent m-o-m advance in March.
“Business conditions may recover for some sectors and industries over the next few months,” suggested Bart van Ark, Chief Economist at The Conference Board, “But, the breadth and depth of the decline in the LEI suggests that an imminent re-opening of some sectors does not imply a fast rebound for the economy at large.”
Economists had forecast home resales decreasing to a 4.30 million-unit pace last month.
In y-o-y terms, however, existing-home sales plunged 17.2 percent in April.
According to the report, single-family home sales stood at 3.94 million in April, down 16.9 percent from March, and down 15.5 percent from one year ago. The median existing single-family home price was $288,700 in April, up 7.3 percent from April 2019. Meanwhile, existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 390,000 units in April, down 26.4 percent from March and down 31.6 percent from a year ago. The median existing condo price was $267,200 in April, an advance of 7.1 percent from a year ago.
“The economic lockdowns - occurring from mid-March through April in most states - have temporarily disrupted home sales,” noted Lawrence Yun, NAR’s chief economist. “But the listings that are on the market are still attracting buyers and boosting home prices.”
data released by IHS Markit on Thursday pointed to a slightly slower rate of contraction of
the U.S. business activity in May, as the economy began to reopen.
According to the report, the Markit flash manufacturing purchasing manager's index (PMI) came in at 39.8 in May, up from 36.1 in April, but nonetheless pointing to a further substantial deterioration in operating conditions midway through the second quarter. Economists had expected the reading to increase to 38. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. According to the report, significant contractions in production and new orders drove the deterioration, as businesses slowly returned to work amid challenging domestic and foreign demand conditions. The rates of reduction were among the most marked since the depths of the financial crisis.
Meanwhile, the Markit flash services purchasing manager's index (PMI) rose to 36.9 in May from the record low of 26.7 in the prior month but nonetheless signaling one of the most severe contractions in service sector activity on record. Economists had expected the reading to rise to 30.0. According to the report, the contraction in the headline index was driven by further weakness in domestic and foreign client demand.
Overall, IHS Markit Flash U.S. Composite PMI Output Index came in at 36.4 in May, up from 27.0 in April, but nonetheless indicating the second-sharpest decline in business activity since the series began in late-2009.
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at HIS Markit, noted: “Encouragement comes from the survey indicating that the rate of economic collapse seems to have peaked in April. In the absence of a second wave of COVID-19 infections, the decline should moderate further in coming months as measures taken to contain the coronavirus are steadily lifted.”
Canada reported on Thursday the New Housing Price Index (NHPI) was unchanged
m-o-m in April, following a 0.3 percent m-o-m advance in the previous month.
Economists had forecast the NHPI to increase 0.1 percent m-o-m in April.
According to the report, new home prices rose in 13 of the 27 census metropolitan areas (CMAs) surveyed in April, led by gains Guelph (+0.6 percent m-o-m), Kitchener–Cambridge–Waterloo (+0.5 percent m-o-m) and Ottawa (+0.4 percent m-o-m), which were supported by favourable market conditions. In contrast, new home prices dropped the most in Edmonton (-0.3 percent m-o-m), Calgary and Regina (both down 0.2 percent m-o-m) in April, with the decreases primarily attributable to weak market conditions.
In y-o-y terms, NHPI rose 0.9 in April, the same pace as in the previous month.
U.S. stock-index futures fell slightly on Thursday, as tensions between the U.S. and China over the origin of coronavirus increased, while the latest jobless claims figures showed the pace of filings had declined from previous weeks.
Today's Change, points
Today's Change, %
FXStreet reports that economist at UOB Group Ho Woei Chen, CFA, gives her opinion on the latest decision by the PBoC.
“The People’s Bank of China (PBoC) kept its benchmark 1Y Loan Prime Rate (LPR) and the 5Y & above LPR unchanged at 3.85% and 4.65% respectively at the monthly fixing...”
“Last Friday also saw the PBoC inject CNY100 bn liquidity into the banking system via the MLF while the second part of the reserve requirement ratio (RRR) cut announced in April kicked in. The 50 bps reduction in RRR for small and medium-sized banks released an additional CNY200 bn liquidity into the financial system.”
“The central bank’s targeted measures and liquidity injections, rather than broad-based aggressive loosening of the monetary policy, are expected to continue in the coming months so long as domestic economic risks remain contained. This will help to maintain the recovery momentum in the domestic economy. Easing inflation as seen in the April CPI and sharper PPI deflation will create room for further monetary policy measures as signaled in the PBoC’s Monetary Policy Implementation Report for 1Q20.”
“The annual National People’s Congress (NPC) that opens this Friday (22 May) is likely to reaffirm the need to continue with counter-cyclical measures given the economic challenges. We expect the PBoC to resume easing monetary policy after the NPC. As such, we maintain our forecast for the 1Y LPR to be cut by 10 bps in June and expect another 20 bps rate reduction in the second half of the year. This will bring the 1Y LPR to 3.55% by end-4Q20.”
“We also see room for another one to two rounds of RRR cut in the next 3-6 months to reduce funding costs and increase the room for banks to expand credit and absorb higher government bonds issuance.”
Wall Street. Stocks before the bell
(company / ticker / price / change ($/%) / volume)
ALTRIA GROUP INC.
Amazon.com Inc., NASDAQ
American Express Co
AMERICAN INTERNATIONAL GROUP
Cisco Systems Inc
Citigroup Inc., NYSE
Deere & Company, NYSE
Exxon Mobil Corp
FedEx Corporation, NYSE
Ford Motor Co.
Freeport-McMoRan Copper & Gold Inc., NYSE
General Electric Co
General Motors Company, NYSE
Home Depot Inc
HONEYWELL INTERNATIONAL INC.
International Business Machines Co...
Johnson & Johnson
JPMorgan Chase and Co
Procter & Gamble Co
Starbucks Corporation, NASDAQ
Tesla Motors, Inc., NASDAQ
The Coca-Cola Co
Twitter, Inc., NYSE
UnitedHealth Group Inc
Verizon Communications Inc
Wal-Mart Stores Inc
Walt Disney Co
Yandex N.V., NASDAQ
Initiations before the market open
Boeing (BA) initiated with an Outperform at RBC Capital Mkts; target $164
Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of
Philadelphia on Thursday, revealed the weakness in the region's manufacturing
activity continued in May.
According to the survey, the diffusion index for current general activity rose from its 40-year low of -56.6 in April to -43.1 this month.
Economists had forecast the index to increase to -41.5.
A reading above 0 signals expansion, while a reading below 0 indicates contraction.
According to the report, the indexes for new orders surged 45 points out of an all-time low for the series last month, from -70.9 to -25.7. The current shipments index climbed 44 points out of an all-time low last month, from -74.1 to -30.3. The current employment index increased 31 points to -15.3, and the average workweek index rose 47 points to -7.1. Elsewhere, unfilled orders held steady at -13.7, while delivery times dropped 11 points to -6.7, suggesting shorter delivery times. On the price front, prices paid index increased 13 points to 3.2, while prices received index rose 8 points to -3.1, its second consecutive negative reading.
The data from
the Labor Department revealed on Thursday the number of applications for
unemployment reduced last week to the lowest level since the U.S. economy went
into lockdown made to fight the COVID-19 pandemic, but still remained evaluated.
According to the report, the initial claims for unemployment benefits totaled 2,438,000 for the week ended May 16. That brings the number of job losses over the past nine weeks to 38.6 million.
Economists had expected 2,400,000 new claims last week.
Claims for the prior week were revised downwardly to 2,687,000 from the initial estimate of 2,981,000.
Meanwhile, the four-week moving average of claims fell to 3,042,000 from a revised 3,543,000 in the previous week.
|08:30||United Kingdom||Purchasing Manager Index Manufacturing||May||32.6||36||40.6|
|08:30||United Kingdom||Purchasing Manager Index Services||May||13.4||25||27.8|
|10:00||United Kingdom||CBI industrial order books balance||May||-56||-59||-62|
EUR rose against other major currencies in the European session on Thursday as weak Eurozone PMI data, which again revealed the devastating impact of the COVID-19 pandemic on the region’s economy, were not enough to outweigh investors' cheer over the EU recovery fund plan.
IHS Markit reported that its latest survey revealed the Eurozone's private sector remained stuck in its deepest downturn ever in May due to ongoing measures taken amid Covid-19 pandemic. However, the rate of contraction eased as parts of the economy started to emerge from lockdowns. The flash IHS Markit Eurozone Composite PMI increased from an all-time low of 13.6 in April to 30.5 in May, its highest since February. The service sector business activity index picked up from 12.0 in April to 28.7 this month, its highest since February, while manufacturing output index rose from 33.4 in April to 39.5, its two-month high. Nonetheless, all three indicators remained well below the 50.0 no-change level, indicating a rapid rate of decline.
On Monday, the leaders of France and Germany, Emmanuel Macron and Angela Merkel, proposed the creation of a EUR500 billion recovery fund "to support a sustainable recovery that restores and strengthens growth in the European Union". According to a joint statement of German Chancellor and French President, the fund is meant to be "ambitious, temporary and targeted" financed by money borrowed by the European Commission (EC) on capital markets "on behalf of the European Union" with guarantees from the Member States on favorable terms. The money would be distributed in the coming years as "budgetary expenditure" to the Member States and "the sectors and regions most affected". The EC's chief Ursula von der Leyen welcomed the proposal, which she said "acknowledges the scope and the size of the economic challenge that Europe faces". The EC is to present its proposal for the recovery fund next week.
FXStreet notes that USD/CAD saw another test and hold of the pivotal support zone seen at the current range lows, 50% retracement of the 2020 surge and ‘neckline’ to the large base at 1.3856/3793, which analysts at Credit Suisse continue to look to provide a solid floor the market.
“We look for a renewed swing higher within the range, with resistance initially seen at 1.3961/70, above which would complete a small base to confirm the range bottom has held, with next resistance then seen at 1.4080/89, ahead of 1.4114/17.”
“A clear and conclusive break below 1.3793 would turn the trend back lower and see weakness extend further, with support seen at 1.3734 next.”
FXStreet reports that according to analysts at Westpac, EUR may gain from the initial rush of enthusiasm over the Macron/Merkel Recovery Plan and easing of lockdown restrictions, but upside is likely to be limited.
“The recent Macron/Merkel proposals for a shared responsibility COVID-19 Recovery Fund for the region has heralded talk of the EU’s Hamiltonian moment, which brings forth genuine fiscal union, but the realities of EU politics mean that this is far from a secured deal.”
“Germany’s legal rulings against ECB and ECJ as well as potential for the Frugal Four to lead opposition against a Recovery Fund may not be key issues at present, but they will return and dampen current EUR rebounds.”
“Markets are currently focusing upon marked improvements in sentiment and so EUR/USD may breach its recent 1.07-1.10 range for a push to 1.12.”
FXStreet reports that economists at Westpac are hoping that the current move higher extends above 109.50 post the BoJ announcement. MUFG Bank also expect the BoJ’s measures to support the USD/JPY pair.
“We hope and expect to see a meaningful injection of liquidity designed to target cash-strapped small businesses. Key will be the incentives to encourage banks to take up the liquidity.”
“We see an inevitable deterioration in US-China trade relations and disappointment about the speed of economic improvement as countries reopening as factors that will support the yen on a medium-term basis.”
“Sub 107.50/108 is not the level to be establishing shorts near-term. We remain frustrated sellers of strength and are hoping that the current move higher extends above 109.50 post the BoJ announcement.”
FXStreet reports that EUR/JPY has eroded the 55-day moving average at 117.55 and the late April high at 117.77. The important base noted by Credit Suisse has been marked.
“We look for a challenge of the April high and also the 200-day moving average at 119.03/119.30. Further up the 55-week ma lies at 119.85 and the 2019-2020 resistance line lies at 121.06.”
“Minor support lies at the 116.86 12th May high and the 116.15 March low. Below here lies the 115.34 mid-May trough. Further down sits the current May low at 114.44. This is viewed as an interim low.”
survey by the Confederation of British Industry (CBI) revealed on Thursday the
UK manufacturers' order books deteriorated further in May.
According to the report, the CBI's monthly factory order book balance fell to -62 in May from -56 in the previous month. That was the lowest reading since October 1981. Economists had forecast the reading to come in at -59. Export order books dropped to their lowest since October 1998 (-55 from -49 in April).
The CBI also reported that output in the quarter to May (-54 from -21 in April) fell at the fastest pace on record since 1975 and is expected to decline at a slightly slower pace in the next three months (-49). Meanwhile, the average selling prices for the next three months (-20 from -11 in April) are expected to decrease at the fastest pace since April 2009.
Anna Leach, CBI Deputy Chief Economist, noted: “These results show that UK manufacturers are still grappling with the impact of the pandemic. Production levels have fallen even more sharply as firms experience collapsing demand and supply chain disruption, leading some to temporarily shut down their factories. The sector is bracing for what will be a challenging period.”
FXStreet reports that the Aussie was stopped out of our short on the pop above 0.6600 but can’t see the case for sustained further gains while China’s trade threats to Australia are having a major impact, per Westpac. OCBC Bank prefers to short the AUD/USD pair after the retreat from the 0.66 level.
“China announced 80% tariffs on Australian barley imports, alleging dumping. This followed a partial ban on Australian beef imports and of course the Chinese ambassador to Australia’s threats to a range of Australian exports.”
“There is no disputing the economic pain of barley growers and beef producers but iron ore remains Australia’s dominant merchandise export to China and this week spot prices reached highs since Aug 2019 as Brazilian supply faltered.”
“Global risk appetite still threatens AUD/USD multi-week but near-term we can’t rule out another push above 0.66.”
CNBC reports that compared to many countries, China has rolled out little additional support for its economy that’s been hit by the coronavirus pandemic, said former Goldman Sachs chief economist, Jim O’Neill.
“It is striking when you look at China’s contrast to so many other countries in the rest of the world so far, how little fiscal expansion China has introduced,” O’Neill, now the chair of U.K. think tank Chatham House, told CNBC.
“I think they’re being both prudent and very cautious and certainly, given the scale of the supply and the demand shock, China’s policy has been quite timid so far,” he added.
According to the International Monetary Fund, China has announced around 2.6 trillion yuan ($365.97 billion) worth of fiscal measures to counter the impact of the coronavirus, as of May 14 this year.
The amount includes unemployment insurance payouts and some tax relief and accounts for about 2.5% of its gross domestic product, according to the fund.
That’s far lower than many other major economies.
O’Neill explained that China is more cautious in stimulating the economy this time because the country does not want debt rising to unsustainable levels. Debt levels in China rose rapidly in the years after the global financial crisis, as Chinese authorities expanded debt to kickstart economic activity.
But China will have to do more, especially now that consumers have become a much more important growth driver, he said. He added that measures that help to support income, such as tax cuts, may eventually be “inevitable.”
FXStreet reports that economists at Westpac Institutional Bank now expect the RBNZ will reduce the OCR to -0.5% in April 2021 (previously November 2020). The kiwi tends to rise when global risk sentiment improves and risk sentiment will indeed improve as the Covid crisis fades over a number of years.
“The Reserve Bank revealed that it has asked the trading banks to ready themselves to implement a negative OCR by December 1 this year. We now expect that the RBNZ will cut the OCR to -0.5% in April 2021.”
“We expect that the RBNZ will expand its Large Scale Asset Purchase (LSAP) programme to $70bn at the June OCR Review, and $80bn at the August MPS.”
“We forecast that the weekly pace of LSAP bond purchases will average $1.1bn until April 2021, slowing to $0.8bn after a negative OCR is introduced. We calculate that the LSAP will eventually total $100bn by June 2022.”
“We are not forecasting foreign bond purchases, but if there is another big negative economic shock this year then the RBNZ could use that option.”
According to the report from IHS Markit / CIPS, UK private sector output remained on a steep downward trajectory in May. The rate of decline in overall business activity eased since April, but was much faster than at any other time since comparable data were first compiled in January 1998.
The headline seasonally adjusted UK Composite Output Index – which is based on approximately 85% of usual monthly replies - registered 28.9 in May, to remain well below the crucial 50.0 no change threshold. Although the index was up from 13.8 in April, the latest reading still signalled a far steeper pace of contraction than at the worst point of the global financial crisis (index at 38.1 in November 2008). Lower volumes of business activity were again almost exclusively linked to business shutdowns, cancellations of customer orders and a general slump in demand amid the coronavirus disease 2019 (COVID-19) pandemic.
May data also signalled rapid declines in new work and employment across the UK private sector, with both rates of contraction the second-fastest in more than 20 years of data collection (exceeded only by that seen in April).
Average prices charged were cut again in May, largely reflecting discounting strategies across the service economy in response to a slump in sales volumes.
Meanwhile, the index measuring business expectations for the next 12 months continued to improve from the series record low seen in March. Survey respondents nonetheless widely commented on concerns that customer demand would take a long time to recover to levels seen before the public health crisis, with some service sector companies still deeply pessimistic about their near-term prospects.
According to the report from IHS Markit, the eurozone economy remained stuck in its deepest downturn ever recorded in May due to ongoing measures taken to control the coronavirus disease 2019 (COVID-19) outbreak. However, the rate of decline eased as parts of the economy started to emerge from lockdowns.
The flash Eurozone Composite PMI rose from an all-time low of 13.6 in April to 30.5 in May, its highest since February. By remaining well below the 50.0 no-change level, the PMI registered a third successive monthly fall in output and continued to indicate a rate of contraction in excess of anything seen prior to the COVID-19 outbreak. The prior low of 36.2 was seen during the peak of the global financial crisis in February 2009.
The pandemic was again by far the most commonly cited cause of falling output, resulting in widespread closures of non-essential businesses, disrupting supply chains and hitting demand for a wide variety of goods and services. The rise in the PMI nevertheless indicated a markedly slower pace of contraction compared to April’s record collapse. Rates of decline eased in manufacturing and services, reflecting both a reduction in the number of companies reporting lower activity and an increase in the number of firms reporting an improvement.
The service sector business activity index picked up from 12.0 in April to 28.7, its highest since February, but social distancing and other virus related lockdown measures continued to hit businesses such as hotels, restaurants, travel and tourism and other consumer-facing firms especially hard, resulting in the third-steepest decline ever recorded.
According to the report from IHS Markit, business activity continued to fall across Germany’s private sector in May, albeit with the rate of decline easing from the record pace seen in April. Meanwhile, despite being less pessimistic about the outlook, firms continued with further steep job cuts and discounting of prices charged for goods and services.
The headline Flash Germany Composite PMI Output Index recorded a reading of 31.4 in May, up sharply from April’s record low of 17.4 but still the second-lowest figure since comparable data were first compiled in 1998. Underlying data showed similarly steep falls in manufacturing production and services business activity, though in both cases the rates of contraction were discernibly slower than in April amid the reopening of parts of the economy. In the majority of cases lower activity was attributed to restrictions on business operating capacity and reduced demand, linked in turn to the coronavirus disease 2019 (COVID-19) outbreak. Indeed, firms across both monitored sectors reported sustained (albeit much slower) downturns in inflows of new business in May, with export sales showing particular weakness.
The easing of lockdown restrictions and growing hopes of a recovery in domestic and international demand saw the survey’s measure of future output improve further from March’s series record low. That said, business sentiment remained firmly in negative territory and lower than at any point prior to March (since this particular series began in July 2012). Manufacturers remained more downbeat about the longer-term outlook than their service sector counterparts.
|00:30||Japan||Nikkei Services PMI||May||21.5||25.3|
|02:30||Australia||RBA's Governor Philip Lowe Speaks|
During today's Asian trading, the US dollar was trading higher against the euro, yen and pound. On Wednesday, the euro rose against the dollar for the fourth day in a row. This week, the euro's growth was supported by optimism about the Franco-German initiative to restore the European economy after the crisis caused by the COVID-19 pandemic.
Federal reserve (Fed) leaders discussed the next stage of monetary policy - to convince markets that rates will remain low for a long time, according to the minutes of the April meeting of the Federal open market Committee (FOMC). It says that the Central Bank may want to clarify its intentions regarding interest rates at upcoming meetings.
On Thursday, traders expect the release of data from the US Department of labor on the change in the number of applications for unemployment benefits last week. As reported last week, since the introduction of restrictive measures in the country to prevent the spread of COVID-19 coronavirus infection, about 36.5 million Americans have applied for benefits.
Meanwhile, Japan's Finance Ministry on Thursday reported that the country's exports fell 21.9% year-on-year in April. Japanese exports fell for the 17th month in a row last month amid weak global demand and the ongoing COVID-19 coronavirus pandemic, which caused a number of businesses to suspend operations.
The ICE Dollar index, which shows the value of the US dollar against six major world currencies, rose 0.27% compared to the previous trading day.
FXStreet reports that FX Strategists at UOB Group still see USD/JPY attempting a move to the 108.50 in the next weeks.
24-hour view: “Yesterday, we expected USD to ‘rise to 108.15 first before a pullback can be expected’. Our expectation did not materialize as USD drifted lower from a high of 107.98. Momentum indicators have turned ‘neutral’ and for today, USD is expected to consolidate and trade between 107.35 and 108.00.”
Next 1-3 weeks: “After trading in a quiet manner for about a week, USD was jolted awake as it surged past the major 107.80 resistance (high of 108.08) before closing at 107.68 in NY (+0.33%). While we would prefer a daily closing above 107.80, the rapid pick-up in momentum suggests USD could head higher towards 108.50 in the coming days. At this stage, the prospect for a move to the next resistance at 108.90 is slim. Overall, the outlook for USD is positive as long as the ‘strong support’ at 107.15 is not taken out.”
Reuters reports that 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 ugly trade numbers come as policymakers seek to balance virus containment measures against the need to revive battered parts of the economy, with the risk of a second wave of infections only complicating this challenge.
Ministry of Finance (MOF) data on Thursday showed Japan's exports fell 21.9% in April year-on-year as U.S.-bound shipments slumped 37.8%, the fastest decline since 2009, with car exports there plunging 65.8%.
The fall in overall shipments was the biggest since October 2009 during the global financial crisis, but slightly less than a 22.7% decrease seen by economists in a Reuters poll. Exports fell 11.7% in March.
Exports to China, Japan's largest trading partner, fell 4.1% in the year to April, due to slumping demand for chemical materials, car parts and medicines.
Shipments to Asia, which account for more than half of Japanese exports, declined 11.4%, and exports to the European Union fell 28.0%.
FXStreet reports that in opinion of FX Strategists at UOB Group, Cable is now expected to trade within the 1.21/1.24 range in the short-term horizon.
24-hour view: “Our view for GBP to ‘test 1.2310 first before a more sustained can be expected’ did not work out as GBP retreated after touching 1.2287. While downward momentum is not exactly strong, the pull-back has scope to extend lower. From here, a dip below 1.2200 would not be surprising but the next support at 1.2175 is likely out of reach. On the upside, the 1.2287 high is acting as a solid resistance for today (minor resistance is at 1.2265).”
Next 1-3 weeks: “GBP took out 1.2230 ‘key resistance’ and as highlighted yesterday (19 May, spot at 1.2205), a break of this level would indicate that the weak phase that started earlier last week (see annotations in chart below) has run its course. The current movement is viewed as the early stages of a consolidation phase. For the next couple of weeks, GBP is likely to trade sideways within a relatively broad range of 1.2100/1.2400.”
CNBC reports that the global number of confirmed coronavirus cases is nearing 5 million, according to data compiled by Johns Hopkins University.
Now, the Federal Reserve is concerned that a second wave of infections around year’s end will result in another round of social distancing and further damage to the economy
WHO made clear Wednesday that the pandemic is far from over after countries around the world collectively reported the largest daily increase in coronavirus cases so far.
Apple and Google have released contract tracing technology and three U.S. states have committed to using it.
Global deaths: At least 328,079
U.S. cases: More than 1.55 million
U.S. deaths: At least 93,416
Resistance levels (open interest**, contracts)
Price at time of writing this review: $1.0953
Support levels (open interest**, contracts):
- Overall open interest on the CALL options and PUT options with the expiration date June, 5 is 92227 contracts (according to data from May, 20) with the maximum number of contracts with strike price $1,0700 (5204);
Resistance levels (open interest**, contracts)
Price at time of writing this review: $1.2190
Support levels (open interest**, contracts):
- Overall open interest on the CALL options with the expiration date June, 5 is 23674 contracts, with the maximum number of contracts with strike price $1,3500 (3420);
- Overall open interest on the PUT options with the expiration date June, 5 is 29189 contracts, with the maximum number of contracts with strike price $1,3500 (3095);
- The ratio of PUT/CALL was 1.23 versus 1.23 from the previous trading day according to data from May, 20
* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.
** - Open interest takes into account the total number of option contracts that are open at the moment.
|Index||Change, points||Closed||Change, %|
|00:30||Japan||Nikkei Services PMI||May||21.5|
|02:30||Australia||RBA's Governor Philip Lowe Speaks|
|08:30||United Kingdom||Purchasing Manager Index Manufacturing||May||32.6||36|
|08:30||United Kingdom||Purchasing Manager Index Services||May||13.4||25|
|10:00||United Kingdom||CBI industrial order books balance||May||-56||-59|
|12:30||U.S.||Continuing Jobless Claims||May||22833||24765|
|12:30||Canada||New Housing Price Index, YoY||April||0.9%|
|12:30||Canada||New Housing Price Index, MoM||April||0.3%||0.1%|
|12:30||U.S.||Philadelphia Fed Manufacturing Survey||May||-56.6||-41.5|
|12:30||U.S.||Initial Jobless Claims||May||2981||2400|
|14:00||U.S.||FOMC Member Williams Speaks|
|14:00||U.S.||Existing Home Sales||April||5.27||4.3|
|17:00||U.S.||FOMC Member Clarida Speaks|
|18:30||U.S.||FOMC Member Brainard Speaks|
|18:30||U.S.||Fed Chair Powell Speaks|
|22:45||New Zealand||Retail Sales YoY||Quarter I||3.3%|
|22:45||New Zealand||Retail Sales, q/q||Quarter I||0.7%|
|23:30||Japan||National CPI Ex-Fresh Food, y/y||April||0.4%||-0.1%|
|23:30||Japan||National Consumer Price Index, y/y||April||0.4%|
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TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.