Posted at 26 August 2020 / Categories Market Roundups
Market Roundup
•France Jobseekers Total 3,792.5K, 3,964.7K previous
•US Mortgage Refinance Index 3,423.0, 3,809.7 previous
•US MBA Purchase Index 310.2, 308.9 previous
•US Mortgage Market Index 770.6, 824.5 previous
•US MBA 30-Year Mortgage Rate 3.11%,3.13% previous
•US MBA Mortgage Applications (WoW) -6.5%, -3.3% previous
Looking Ahead – Economic Data (GMT)
•US Goods Jul Orders Non Defense Ex Air (MoM) 1.9%, 3.4% previous
•US Jul Durables Excluding Defense (MoM) 9.5% previous
•US Jul Core Durable Goods Orders (MoM) 2.0% forecast ,3.6% previous
•US Jul Durable Goods Orders (MoM) 4.3% forecast ,7.6% previous
•US Gasoline Production -0.200M previous
•US Gasoline Inventories -1.533M forecast, -3.322M previous
•US Crude Oil Inventories-3.694M forecast, -1.632M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 Canada BoC Gov Council Member Wilkins Speaks
•16:00 UK BoE MPC Member Haldane Speaks
Currencies Recap
EUR/USD: The euro was little changed against dollar on Wednesday as investors refrained from taking risky bets a day ahead of a key speech by Federal Reserve Chairman Jerome Powell. Amid growing speculation Powell could unveil a softer policy stance towards inflation at the annual Jackson Hole retreat on Thursday, investors are bracing for the Fed’s possible new steps to prop up the U.S. economy. Both a policy change announcement and the lack of are expected to resonate strongly across trading floors. Immediate resistance can be seen at 1.1840 (23.6%fib), an upside break can trigger rise towards 1.1940 (23.6% fib).On the downside, immediate support is seen at 1.1752 (50% fib ), a break below could take the pair towards 1.1892 (Lower BB).
GBP/USD:The British currency held steady on Wednesday against the U.S. dollar, as Brexit uncertainty kept traders on the sidelines. This week’s biggest scheduled event is Bank of England Governor Andrew Bailey’s speech at Jackson Hole on Thursday. Sterling was steady at $1.3155 and rose 0.2% to 89.84 pence against the euro. The British currency has been dragged higher in recent weeks by a weakening U.S. dollar. Immediate resistance can be seen at 1.3192 (23.6%fib), an upside break can trigger rise towards 1.3228 (Lower BB).On the downside, immediate support is seen at 1.3130 (5 DMA), a break below could take the pair towards 1.2997 (38.2%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as investors made riskier bets amid optimism about U.S.-China trade and expectations of ample central bank stimulus before a key speech by the U.S. Federal Reserve chairman at Jackson Hole. Fed Chairman Jerome Powell is due to speak at a virtual Jackson Hole symposium on Thursday, where investors think he could outline a more accommodative approach to inflation which would open the door to easier policy for a long time to come. Immediate resistance can be seen at 0.9108 (Daily high), an upside break can trigger rise towards 0.9147 (38.2% fib).On the downside, immediate support is seen at 0.9078 (23.6% fib), a break below could take the pair towards 0.9021(Lower BB).
USD/JPY: The dollar was little changed against the Japanese yen on Wednesday as traders were firmly focused on Powell's speech on the U.S. central bank's policy framework review at this year's virtual edition of the Jackson Hole symposium on Thursday. Investors are waiting to see if Powell signals a shift in the Fed's inflation target to an average, which would allow inflation to rise more quickly than in the past.. Strong resistance can be seen at 106.78(50% fib), an upside break can trigger rise towards 107.19 (Higher BB).On the downside, immediate support is seen at 106.02 ( 5 DMA ), a break below could take the pair towards 105.52(38.2% fib).
Equities Recap
European stocks inched higher on Wednesday as hopes of additional stimulus for Germany and France outweighed worries about rising cases of COVID-19 across the continent.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.27percent, Germany's Dax was up by 0.23 percent, France’s CAC was last up by 0.06 percent.
Commodities Recap
Gold prices fell on Wednesday as the dollar gained, while investors waited for U.S. Federal Reserve Chairman Jerome Powell’s speech for a snapshot of the central bank’s monetary plan to revive the pandemic-hit economy.
Spot gold was down 0.5% at $1,918.59 per ounce by 0954 GMT. U.S. gold futures edged up 0.1% to $1,924.60.
Oil held near $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.
Brent crude slipped 14 cents, or 0.3%, to $45.72 a barrel by 1050 GMT, while U.S. West Texas Intermediate crude fell 17 cents, or 0.4%, to $43.18. Both benchmarks settled at a five-month high on Tuesday.