Attention turns to US as markets tank

June 25, 2020

An array of significant market data is expected to be published today, with the US in focus.

The USD strengthened overnight, putting pressure on paired currencies. The EURUSD began the day at $1.13066 and was flat early in the day, edging up to a high of$1.13253. Mid-session trading saw the euro slide, eventually hitting a low of $1.12473 late in the day. It is not far off those lows and is now trading at $1.12558. The GBPUSD also finished the day lower after opening at $1.25184. The pair lifted to a high of $1.25421 early and remained above $1.25 for almost half the session. The pound tumbled over the back half of the day, hitting lows of $1.24114 late in the day. It has come off those lows slightly and is now trading at $1.24300.

Indices were belted overnight as some suggest that concerns over a spike in coronavirus cases is the cause for market jitters. Analysts also suggest that the lingering trade negotiations between the US and China and the belief that indices may have been overbought in the last few days could also be contributing factors. The IMF had also adjusted the impact of worldwide shutdowns on the global economy, declaring that economic growth will now contract by 4.9%, up from 3% they forecast earlier in the year. The Dow opened the day at 26,093.63 and edged up to a high of 26,249.05 early in the session. The sell-off began shortly afterwards, with the flagship US index plummeting to lows of 25,290.27. It has bounced off those lows and is now trading at 25,538.49. The Dax buckled under negative news and a falling down after starting the day at 12,435.85. The German index ticked up to a high of 12,501.64 early before the rot set in. Sharp declines over the second half of the trading session saw the Dax fall to lows of 12,012.68. It has cone off those lows and is now trading at 12,161.07.

Focus shifts to the US and the publication of some crucial economic data. The US will be releasing Durable and Core Durable Goods Orders data. After plummeting by 17.7% and 7.7% respectively, analysts are expecting a big bounce back, with Durable Goods Orders expected to grow by 10.3% and Core Durable Orders tipped to grow by 2.1%.

Other data published today includes:

Europe – German GfK Consumer Climate

UK – CBI Realised Sales, MPC Member Andy Haldane speaks

US – Unemployment Claims, Final GDP, Final GDP Price Index, Goods Trade Balance, Prelim Wholesale Sales, Natural Gas Storage, Bank Stress Test Results


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