Last session market review
The dollar index held steady all the way up, the day further hit a high of 100.23. Spot gold showed a shock decline, has rebounded from the low point, up 0.14 percent on the day. And the oil market retreated again, five consecutive positive momentum stopped abruptly.
On Thursday, the focus was on the bank of England’s interest rate decision, the U.S. initial invitation, as well as speeches by bank of England governor pele, European central bank President Christine lagarde and federal reserve officials josef bostick, kashkari and haq.
Fx: euro/dollar at 1.0792; The pound closed at $1.2347; The Australian dollar closed at 0.6397; Dollar/yen closed at 106.11; Us dollar/Canadian dollar closed at 1.4143; The dollar was last at 0.9748 Swiss francs.
Commodities: spot gold closed at $1,684.50 an ounce; Comex gold ended at $1688.50 an ounce; Spot silver settled at $14.84 an ounce; Comex silver ended at $15.015 an ounce; Brent crude settled at $29.72 a barrel; NYMEX crude closed at $23.99 a barrel.
In the currency market
Euro: the euro fell for a third day, or 0.43%, to 1.0792, as the dollar continued to rally. On the technical plane, the pivot point of the currency pair is at 1.0807, the initial resistance of the exchange rate upward is at 1.0832, the further resistance is at 1.0872, and the key resistance is at 1.0897. The initial support of the exchange rate down at 1.0768, further support at 1.0743, more critical support at 1.0703.
Sterling: the pound fell for the fourth day in a row, closing at 1.2347, down 0.71%. On the technical level, the pivot point of the currency pair is 1.2375, the initial resistance to the upward trend of the exchange rate is 1.2414, further resistance is 1.2489, and the key resistance is 1.2529. The initial support of the exchange rate down at 1.2299, further support at 1.2260, more critical support at 1.2184.
Yen: dollar/yen fell for the fourth day in a row, closing at 106.11, down 0.40%. On the technical level, the pivot point of the currency pair is 106.23, the initial resistance to the upward trend of the exchange rate is 106.46, the further resistance is 106.83, and the key resistance is 107.07. The initial support of the falling exchange rate is at 105.85, further support at 105.62, more critical support at 105.25.
The stock market
U.S. and European stocks: the three major U.S. stock indexes ended mixed Wednesday, with the dow jones industrial average down 218.50 points, or 0.91%, at 23,664.64, as investors pondered the prospect of the U.S. economy reopening and a grim jobs report. The s&p 500 closed down 20 points, or 0.70%, at 2,848.42. The dow and the s&p 500 posted their first declines in three days. Still, the NASDAQ composite index ended up 45.30 points, or 0.51%, at 8854.39 as large-cap technology stocks extended their recent gains.
European stocks ended lower on Wednesday as investors reacted to falling oil prices, efforts to lift the blockade, and fresh economic data. The pan-European Stoxx 600 closed down 0.35 percent, or 1.16 percent, at 334.34, led lower by oil and gas energy shares. Germany’s DAX closed down 121.06 points, or 1.13%, at 10608.40. Britain’s FTSE 100 closed up 1.08 points, or 0.02%, at 5,850.50. France’s CAC-40 index closed down 49.75 points, or 1.11%, at 4433.38. Spain’s IBEX35 index closed down 70.70 points, or 1.05%, at 6,677.00. Italy’s FTSE closed down 247.88 points, or 1.43 percent, at 17139.50. Europe’s Stoxx 50 index closed down 32.66 points, or 1.14 percent, at 2843.25.
The bond market
On the us side, Treasury yields rose after the Treasury on Wednesday announced the issuance of new 20-year notes in response to record borrowing during the new pandemic: the yield on the benchmark 10-year Treasury note jumped 5 basis points to a session high of 0.72 per cent, the highest since April 15. The yield on the 30-year Treasury note jumped 9 basis points to 1.41 per cent.
International spot gold started at $1704.74 an ounce in early trading on Wednesday, rising as high as $1707.70 an ounce, and dipping as low as $1682.10 to close at $1684.50, down $20.20 or 1.18%.
COMEX gold futures for June ended down 1.3 percent at $1688.50 an ounce, hurt by a stronger dollar ahead of the U.S. nonfarm payrolls report.
Oil prices closed lower Wednesday, ending a five-day winning streak: U.S. WTI crude for June delivery fell 57 cents, or 2.3%, to $23.99 a barrel. Brent crude for July delivery fell $1.25, or 4 percent, to $29.72 a barrel. WTI crude is down 60.71% from $61.06 / BBL in December 2019, while oil distribution is down nearly 55% from $66 / BBL last year.