Friday 15.05.2020
Asian Session
Asian stock market were mixed today and failed to sustain Wall Street rally and futures markets indicated that US stocks could open with loss later in the day. Chinese economic data showed factory activity picking up, but the country’s shoppers were still reluctant to spend. Japan index was down by 0.3%, while Hong Kong index remained flat. South Korea’s KOSPI and Shanghai indexes rose by 0.1%. Australia’s index rose by 0.4%.
| Asian Stock | Closed |
| Nikkei | -0.3% |
| Hong Kong HSI | -0.1% |
| China Shanghai SSE | +0.1% |
| KOSPI – South Korea | +0.1% |
US Stocks
US stocks closed the day higher yesterday despite the spike to the downside, as investors overlooked the negative data from Initial Jobless claims report which showed another 2.9 million people lost their jobs last week with overall unemployment reaching 36.55 million due to the pandemic. Many analysts said the historic stimulus efforts from Central Banks won’t be enough to ensure a rapid rebound Dow Jones rose by 1.62%, while SP500 index went up 1.15% and Nasdaq Composite index rose up by 0.90%.
| US Stocks | Closed |
| DOW | +1.62% |
| S&P500 | +1.15% |
| NASDAQ | +0.90% |
Major Currencies & Dollar Index
The potential for a strong EURUSD is related to reflationary trends but is unlikely upside risk. EURUSD forecast is about 1.09 in short term and we may see further drop on the ling term to 1.07. Yesterday euro ignored the initial jobless claims report as the pair closed the day negatively. After the recent data of UK Gross Domestic Product and their economy, we observed that pound declined to 1.21 price range, but there is a bullish bias above 1.2185, as the pair found strong support level there against dollar. The rebound could lead pound reach again the 1.227 price level. Dollar yen indicates a bearish trend may continue to find a minor support level at 106.9 from 107.2 where is currently traded. Short positions remained below 107.4 and above 107.4 we may see further highs to 107.8.
Gold Market
Gold finally broke above the symmetrical triangle consolidation pattern and reached the 1730 level. The precious metal has robust support and the multi-year high is already in sight. The level of 1722 could be strong support level for gold, and we may see further gains to upside to 1747 one month high.
Oil Market
According to CME Group yesterday open interest in crude oil futures plunged by around 47.4k contracts and went down for the second day in a row. WTI faces strong resistance level at $30 as it was expected from many analysts few weeks ago. We expect to see at May 19 the June contract expiration, where it is expected to see another decline in oil prices due to oversupply to the market. Oil exports fell by 5.96 million barrels per day in May.
European Stocks
Selling pressure observed yesterday in European stock market amid investors fears of prolonged economic downturn due to the virus, leading euro banks to all time lows. Stoxx600 index closed yesterday lower by 2.2%.
On the data front 15-05-2020
| Time (GMT+2) | Event | Impact |
| 09:00 am | EUR Producer Price Index (MoM) (Apr) | Medium |
| N/A | EUR Gross Domestic Product (QoQ) (Q1) | High |
| 12:00 pm | EUR Gross Domestic Product s.a (QoQ) (Q1) | High |
| 12:00 pm | EUR Gross Domestic Product s.a (YoY) (Q1) | High |
| 15:30 pm | USD Retail Sales Control Group (Apr) | High |
| 17:00 pm | USD Michigan Consumer Sentiment Index (May) | High |
