Midday Analysis – 24th June 2020

Today’s Market Outlook

During market open today, Risk appetite maintained its firmness overnight as NASDAQ made another record high. Asian markets on the other hand seemed rather quiet despite movements at wall street. The NZD dropped broadly today as dovish RBNZ hints on further easing with talks that hinted that, the central bank would expand asset purchases in August’s meeting. On the other hand, the AUD is trading moderately Bullish for today, followed by Euro. As for the week, Dollar remains the weakest one even though there is no clear follow through selling so far. 

Today’s High Impact Events

The times below are GMT+3

8.00 am (Post) – Japan Leading Economic Index 

The Japan Leading Economic Index was better than expected which was released at 77.7 for April in final reading vs 76.2 in first estimate and 85.1 in March. The JPY seemed to be strongly Bullish against the EUR, GBP, AUD & NZD for the short to Medium term (4hr chart).

10.00 am (Post) – ECB Lane Speech 

Lane’s speech concentrated on the impact of the monetary policy measures taken by the ECB in response to the ‘pandemic emergency on euro area financial conditions’ and the outlook for growth and inflation. In terms of the impact on EUR, it is seen to be trading in strongly Bullish territory against the GBP, AUD & NZD especially on the short to medium time frames ( 1hr & 4hr charts).EUR seemed strongly Bearish against the USD,JPY & CHF on the 4hr chart. 

11.00 am (Post) – Germany ILO Related Data   

German business sentiment rose in June, beating forecasts as the index showed its strongest increase ever recorded, the IFO Institute said today. The data obtained were based on a poll of about 9,000 companies in manufacturing, services, trade and construction. 

4.00 pm – US Housing Price Index

The House price index figures are due at 9 a.m. ET while The International Monetary Fund (IMF) is also releasing its latest economic forecasts at the same time. How will it fair this time? Well it’s best to look at the previous report and figures as a probable indicator. The S&P CoreLogic Case-Shiller 20-city price index posted a 3.9% year-over-year gain in March, up from 3.5% the previous month. On a monthly basis, the index increased 0.5% between February and March. As buyers return to the market as the country rebounds from the pandemic, a limited inventory of homes for sale could fuel bidding wars and push prices higher. 

10.00 pm – US Fed Bullard Speech 

So far, St. Louis Fed leader James Bullard has been optimistic and did say just recently that, the U.S. economy can see a meaningful rebound over the final six months of the year, as it continues addressing the fallout of the coronavirus pandemic. Overall, it could be a speech that reflects positivity. 

Coronavirus Status Update 

US COVID-19 cases rose by 26,643 vs. Prev. 27,616 increase and the death toll rose by 410 vs. Prev. 308 increase. Texas coronavirus cases increased by a record 5,489 (+4.8%) and hospitalizations increased by 10.3% to 4,092.  

Furthermore, a Texas County Official said that the Houston area COVID-19 ICU beds are to hit capacity in 11 days, while there were also comments from NJ Governor Murphy that transmissions are beginning to creep up. (Newswires).

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