Upward movement accelerates after the US open
Coffee was gaining over 6%
EUR/GBP rose to 3-month high
Global financial markets still seem to be dominated by coronavirus updates as the rising number of cases is particularly alarming in the US. Amid rising fears, European stocks started today’s trading without clear direction. However, following the US open, upward movement did accelerate. As a result, some European indices finished the day over 1% higher - DAX was up 1.18% while FTSE 100 added 1.08%. Gains can be spotted in America as well. All US major indices are gaining at press time - Russell 2000 is rising as much as 2.50%.
As far as commodities are concerned, coffee was surging over 6% today (we have covered the topic in our BREAKING commentary) while oil prices post some solid gains as well. Wheat and corn futures are in the green (around 2%). GBP is worth mentioning today as the British pound takes a serious beating. EUR/GBP climbed to 3-month high.
In terms of economic data, today’s calendar was rather light - as it is usually the case on Monday. Despite numerous CPI reports, Japan released its retail sales numbers for the month of May. The number came in slightly below expectations: -12,3% YoY (exp. -11.6% YoY). Apart from that, some data on housing market was published as well. Building permits in Canada rose in May 20.2% MoM (exp. 15.0%) while pending home sales in the US increased by a staggering 44.3% (exp. 18.9%) - the highest growth in history of the report.
Tomorrow (at night BST time) Japan will publish some key economic data on industrial production and employment. Chinese PMI for the month of June will be crucial too as Chinese figures might give us some insights about the pace of economic recovery. In the morning UK will release some key hard data (including GDP report and business investment). Canada will also inform investors about its GDP growth in April. All in all, one should prepare for a hectic day (as usual, we will give you some guidance in tomorrow’s “Economic calendar” in the morning).
EUR/GBP climbed to 3-month high today. The currency pair broke above the recent trading channel, which means that bulls will probably try to reach the upper limit of the wider trading channel in the near future. Source: xStation5