Posted at 24 August 2020 / Categories Market Roundups
Market Roundup
•Coronavirus treatment, vaccine hopes support sentiment
•World stocks gain for second session
•Gulf of Mexico storms lift crude oil futures
•Global coronavirus deaths exceed 800,000
•US Jul Chicago Fed National Activity 1.18, 4.11
Looking Ahead – Economic Data (GMT)
•13:00 French 3-Month BTF Auction -0.571% previous
•13:00 French 12-Month BTF Auction -0.571% previous
•13:00 French 6-Month BTF Auction -0.605% previous
•15:30 US 3-Month Bill Auction 0.105% previous
•15:30 US 6-Month Bill Auction 0.120% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Recap
EUR/USD: The euro edged higher against dollar on Monday as weak dollar and signs of progress in developing a COVID-19 treatment supported euro across the board. Central banks worldwide have rolled out massive stimulus measures to alleviate the economic damage caused by the COVID-19 pandemic, but that has also increased the probability of rising inflation. The euro has pulled back slightly from a two-year high versus the dollar reached last week, which makes it vulnerable to short-term profit taking. Immediate resistance can be seen at 1.1848 (Daily high), an upside break can trigger rise towards 1.1925 (23.6% fib).On the downside, immediate support is seen at 1.1800(38.2% fib ), a break below could take the pair towards 1.1756 (21st Aug low).
GBP/USD The pound gained against dollar on Monday as hopes for a coronavirus treatment boosted risk assets and markets geared up for the U.S. Federal Reserve’s annual Jackson Hole meeting later in the week. Investors have been eagerly awaiting details on possible changes to how the Fed targets inflation. While global investors cheered the U.S. drug regulator's authorisation of the use of blood plasma from recovered patients as a COVID-19 treatment option, concerns about a continued spike in infections capped gains. Immediate resistance can be seen at 1.3145 (Daily high), an upside break can trigger rise towards 1.3190 (23.6% fib).On the downside, immediate support is seen at 1.3078 (21DMA), a break below could take the pair towards 1.2994 (38.2%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Monday as traders looked Federal Reserve’s Chairman Jerome Powell's speech at Jackson Hole later this week for clarity on the direction of U.S. monetary policy. Federal Reserve Chairman Jerome Powell will discuss monetary policy on Thursday at the opening day of the Kansas City Fed’s annual symposium. This year the meeting will be held online, and not at the hunting and fishing resort of Jackson Hole, Wyoming because of the coronavirus pandemic. Immediate resistance can be seen at 0.9120 (21DMA), an upside break can trigger rise towards 0.9164 (38.2% fib).On the downside, immediate support is seen at 0.9057 (21 Aug low), a break below could take the pair towards 0.9013 (Lower BB ).
USD/JPY: The dollar declined against the Japanese yen on Monday as markets geared up for the U.S. Federal Reserve’s annual Jackson Hole meeting later in the week. The quantitative easing that the Fed has deployed so far has flooded financial markets with excess liquidity and weighed on the dollar. Investors will also be watching out for a further run of data this week for clues on the global economy, including a second estimate of U.S. GDP for the second quarter as well as weekly jobless claims and some second tier Asian indicators. Last week the dollar index against a basket of six major currencies fell to the lowest in more than two years. It was last trading at 93.218, little changed from Friday. Strong resistance can be seen at 106.13 (30 DMA), an upside break can trigger rise towards 106.78 (50%fib).On the downside, immediate support is seen at 105.52 (38.2% fib ), a break below could take the pair towards 104.41(Lower BB).
Equities Recap
European stocks bounced from a two-week low on Monday as signs of progress in developing a COVID-19 treatment offset fears about a resurgence in virus cases across the continent that could risk stifling an economic recovery.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.63 percent, Germany's Dax was up by 2.25 percent, France’s CAC was last up by 2.16 percent.
Commodities Recap
Gold prices edged up on Monday as the dollar dipped, making bullion cheaper for holders of other currencies, but hopes for progress in the treatment of COVID-19 limited further gains in the safe-haven metal.
Spot gold was up 0.5% at $1,949.64 an ounce by 1147 GMT, off an earlier low of $1,929.69, while U.S. gold futures gained 0.6% to $1,958.10.
Crude oil prices nudged higher on Monday as storms bore down on the Gulf of Mexico, shutting more than half the region’s oil production, although gains were capped by ongoing concerns about demand from coronavirus lockdowns.
Brent crude oil futures added 8 cents, or 0.2%, to $44.43 a barrel by 0040 GMT while U.S. West Texas Intermediate crude was up 7 cents, or 0.2%, to $42.41 a barrel.