Posted at 07 September 2020 / Categories Market Roundups
Market Roundup
•Oil falls more than $1 after Saudi price cuts
•German Jul Industrial Production (MoM) 1.2%,4.7% forecast,8.9% previous
•Finnish Jul Trade Balance -0.44B, -0.21B previous
•French Aug Reserve Assets Total 198,158.0M, 200,385.0M previous
•UK Halifax House Price Index (YoY) 5.2%, 3.8% previous
•UK Aug Halifax House Price Index (MoM) 1.6%, 1.5% forecast, 1.6% previous
•Irish GNP (YoY) (Q2) -2.5%,6.7% previous
•Irish GNP (QoQ) (Q2) -7.4%,0.1% previous
•Irish GDP (YoY) (Q2) -3.0%,5.7% previous
•Irish GDP (QoQ) (Q2) -6.1%,-2.1% previous
Looking Ahead - Economic Data (GMT)
•13:00 French 3-Month BTF Auction-0.568% previous
•13:00 French 6-Month BTF Auction-0.579% previous
•13:00 French 12-Month BTF Auction-0.567% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged lower against dollar on Monday as investors awaited the European Central Bank meeting on Thursday to see if policymakers will introduce yet more stimulus. Investors are not expecting any policy changes at Thursday’s ECB meeting but will be listening closely for anything said about the euro after a blistering rally that has likely unnerved some policymakers. In a quiet start to the trading day on Monday, the euro last stood at $1.1818, down 0.02% on the day .Immediate resistance can be seen at 1.1851(5 DMA), an upside break can trigger rise towards 1.1869 (38.2% fib).On the downside, immediate support is seen at 1.1787 (50 % fib), a break below could take the pair towards 1.1748 (Lower BB).
GBP/USD: Sterling fell on Monday against dollar as Brexit talks plunged into crisis following Britain’s threat to override its European Union divorce deal. Britain is reportedly planning new legislation that will override key parts of the Brexit Withdrawal Agreement a step that, if implemented, could jeopardise the January treaty and cause frictions in Northern Ireland. Britain left the EU in January but has until the end of this year to forge a post-Brexit trade deal with the bloc, during a so-called transition period. However, both parties have given October as a self-imposed deadline. By 12:30 GMT, the currency was down 0.93% at $1.3155.Immediate resistance can be seen at 1.3247 (38.2%fib), an upside break can trigger rise towards 1.3284 (Higher BB).On the downside, immediate support is seen at 1.3140 (Daily low), a break below could take the pair towards 1.3072 (50%fib).
USD/CHF: The dollar steadied against the Swiss franc on Monday as traders took stock of the latest U.S. jobs data. U.S. jobs data on Friday has helped the dollar. The U.S. Labour Department report showed that U.S. employment growth slowed and permanent job losses increased as government funding started running out. Still, the jobless rate fell to 8.4% from 10.2% in July. The dollar index rose 0.2% against its rivals. U.S. markets are shut for the Labor Day holiday on Monday. Immediate resistance can be seen at 0.9165(Higher BB), an upside break can trigger rise towards 0.9200 (2Psycgological level).On the downside, immediate support is seen at 0.9110 (5 DMA), a break below could take the pair towards 0.9075 (50%fib ).
USD/JPY: The dollar was little changed against the Japanese yen on Monday, ahead of a heavy week of macroeconomic data with figures on household spending, current account and gross domestic product due on Tuesday. Federal Reserve Chairman Jerome Powell said on Friday the U.S. jobs report for August was a good one, but noted that with gains likely to slow, the Fed is planning to keep its foot on the monetary policy gas pedal for years. At (GMT 11:01),the dollar was 0.02 percent higher versus the Japanese yen at 106.22.Strong resistance can be seen at 106.42 (Daily high), an upside break can trigger rise towards 106.86 (50%fib).On the downside, immediate support is seen at 106.14 (5DMA), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares rebounded on Monday after a Wall Street-led rout in technology stocks kept global sentiment subdued in the previous week, with investors keeping a close watch on COVID-19 vaccine developments.
At (GMT 11:12 ),UK's benchmark FTSE 100 was last trading up at 1.75 percent, Germany's Dax was up by 1.40 percent, France’s CAC was last up by 1.25 percent.
Commodities Recap
Gold steadied in a tight range on Monday, paring initial gains after a firmer dollar offset support from renewed fears over the economic hit from the COVID-19 pandemic.
Spot gold was steady at $1,931.91 per ounce by 0742 GMT, after hitting a one-week low of $1,916.24 on Friday. U.S. markets are shut for the Labor Day holiday on Monday.U.S. gold futures rose 0.1% to $1,936.20.
Oil prices fell on Monday as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months and uncertainty over China’s oil demand cloud oil markets’ recovery.
Brent crude was at $42.04 a barrel, down 62 cents or 1.4% by 0859 GMT, after earlier sliding to $41.51, the lowest since July 30.
U.S. West Texas Intermediate crude skidded 63 cents, or 1.6%, to $39.14 a barrel after earlier dropping to $38.55, the lowest since July 10.