Global stocks mixed as the G20 meeting kick-off
Global stocks were mixed today as the G20 meeting started in Osaka, Japan. In China, all the benchmark indices declined, with the Shanghai and A50 shedding 18 and 25 points respectively. In Japan, the Nikkei index declined by 18 points while in Europe, the DAX and FTSE rose by 68 and 17 points respectively. In the US, futures rose slightly ahead of the market open. Investors hope that Donald Trump and Xi Jinping will reach a compromise, to at least pause the ongoing trade war. The war has been mentioned by most central banks when cautioning about the softening of their economies.
The euro eased after the European Union released key economic data. In June, consumer prices rose by an annualized rate of 1.2%. This was in line with investors’ expectations. The core CPIL, which removes the volatile food and energy products rose by 1.1%, which was better than expected. It was also above May’s rise of 0.8%. However, inflation in the region remains below the ECB target of 2.0%. In Italy, the headline CPI rose by 0.8% while in France, it rose by 1.2%. In Germany, the import price index declined by an annual rate of -0.2%, which was slightly better than the expected decline of -0.3%. In the UK, the country’s economy rose by an annualized rate of 1.8% in the first quarter as was expected.
In the US, the Bureau of Economic Analysis released the personal income and spending data. The data showed that in May, personal income rose by 0.5% on a MoM basis. This was slightly higher than the expected 0.3%. In the same month, personal spending rose by 0.4%. The core PCE price index rose by an annualized rate of 1.6%. The PCE deflator remained unchanged at 1.5%. Meanwhile, in Canada, the economy expanded by a MoM rate of 0.3%.
The EUR/USD pair declined slightly after the European Union released key economic data. The pair declined to an intraday low of 1.1367. On the hourly chart, the pair is along the 28-day and 14-day moving averages. It is also between the weekly high of 1.1412 and the important support of 1.1343. With the pair in consolidation mode, it means that it could break out in either direction when the markets open on Monday.
The GBP/USD pair moved up today after the UK released its GDP data. The pair moved from a low of 1.2660 to a high of 1.2698. On the hourly chart, the pair has formed a symmetrical triangle pattern. The price is above the 61.8% Fibonacci Retracement level. The pair could break out in either direction when the markets open on Monday.
The XBR/USD pair continued to move up, reaching a high of 65.80. On the four-hour chart, the price is above the important 38.2% Fibonacci Retracement level while the RSI is slightly below the overbought level of 70. The price is slightly above the 28-day and 14-day moving averages. The pair could continue moving higher to test the important resistance level of 66.85, which is also the 50% Fibonacci Retracement level.