Posted at 10 September 2020 / Categories Market Roundups
Market Roundup
•Sweden Aug CPI (MoM) -0.1%,-0.1% forecast,0.2% previous
•Sweden Aug CPI(YoY) 0.8%,0.9% forecast, 0.5% previous
•Italian Jul Industrial Production (YoY) -8.0%,-9.7% forecast, -13.7% previous
•Italian Jul Industrial Production (MoM) 7.4%,3.5% forecast, 8.2% previous
•Greek Aug CPI (YoY) -1.9% , -1.8% previous
•Greek Jun Unemployment Rate 18.3%,17.0% previous
•Portuguese Aug CPI (YoY) 0.0%,-0.2% forecast, 0.1% previous
•Portuguese Aug CPI (MoM) -0.3%, -0.2% forecast, -1.3% previous
•Irish Aug CPI (YoY) -1.0%,-0.4% previous
•Irish Aug HICP (YoY) -1.1%, -0.6% previous
•Irish Aug HICP (MoM) -0.1%,-0.2% previous
•Eurozone ECB Interest Rate Decision 0.00%,0.00% forecast, 0.00% previous
• Eurozone Sep Deposit Facility Rate -0.50%, -0.50% forecast, -0.50% previous
• Eurozone ECB Marginal Lending Facility 0.25%,0.25% previous
• US Continuing Jobless Claims 13,385K, 12,925K forecast, 13,254K previous
• US Jobless Claims 4-Week Avg 970.75K, 991.75K previous
• US Initial Jobless Claims 884K, 846K forecast, 881K previous
• US Aug Core PPI (YoY) 0.6%,0.3% forecast, 0.3% previous
• US Aug Core PPI (MoM) 0.4%,0.2% forecast, 0.5% previous
• US Aug PPI (MoM) 0.3%, 0.2% forecast, 0.6% previous
• US Aug PPI (YoY) 0.2%,-0.3% forecast, -0.4% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Central Bank reserves (USD) 591.8B previous
•14:00 US Jul Wholesale Trade Sales (MoM ) 2.8% forecast,8.8% previous
•14:00 US Wholesale Inventories (MoM) -0.1% forecast, -1.4% previous
•14:30 US Natural Gas Storage 68B forecast, 35B previous
•15:00 US Crude Oil Inventories -1.335M forecast, -9.362M previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fx Beat
EUR/USD: The euro edged higher on Thursday against a weaker dollar but gains were capped by the possibility that the European Central Bank could flag more policy easing if it deemed economic recovery and inflation are at risk from currency appreciation. Attention , centered on the euro and the ECB’s governing council meeting later on Thursday. The bank is all but certain to keep policy unchanged but President Christine Lagarde’s comments on the euro’s recent rise to two-year highs will be closely monitored. Immediate resistance can be seen at 1.1891 (61.8% fib), an upside break can trigger rise towards 1.1938 (Higher BB).On the downside, immediate support is seen at 1.1812 (50% fib), a break below could take the pair towards 1.1760 (Lower BB ).
GBP/USD: The British pound calmed on Thursday after whipsawing the day before as investors tried to understand whether a British bill to undercut the Brexit divorce deal would cause the European Union to leave the negotiating table.Britain and the EU will hold emergency talks at 1200 GMT, in addition to ongoing negotiations this week. Britain left the EU in January, but is now in a transition period during which it has access to EU markets. It was given a year to agree a new trade deal with the EU. Immediate resistance can be seen at 1.3051 (50% fib), an upside break can trigger rise towards 1.3070 (5DMA).On the downside, immediate support is seen at 1.2922 (Lower BB), a break below could take the pair towards 1.2831 (23.6% fib).
USD/CHF: The dollar weakened against the Swiss franc on Thursday ahead of a policy decision by the European Central Bank due later in the day .The ECB is set to announce its rate decision at 1145 GMT on Thursday. Investors will watch out for its inflation forecasts, although no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy. The ECB's growth and inflation projections to be published on Thursday will only show slight changes compared with the bank's June forecasts, Bloomberg reported on Wednesday. Immediate resistance can be seen at 0.9102 (11 DMA), an upside break can trigger rise towards 0.9121 (23.6%fib).On the downside, immediate support is seen at 0.9069 (Daily low), a break below could take the pair towards 0.9020 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Thursday as the dollar as investors held back from making large bets ahead of the European Central Bank’s monetary policy. The ECB is all but certain to keep policy unchanged when it announces its decision, which will then be followed by a news conference by its President Christine Lagarde.Major central banks have rolled out unprecedented stimulus measures and kept interest rates low, driving gold to new highs because of its role as a hedge against inflation and currency debasement. Strong resistance can be seen at 106.54 (50 DMA), an upside break can trigger rise towards 106.67 (Higher BB).On the downside, immediate support is seen at 106.92 (Daily low), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European shares edged lower on Thursday, with investors awaiting signs of more stimulus from the European Central Bank in the face of a strong euro, although it is expected to keep its policy unchanged.
At (GMT 12:30),UK's benchmark FTSE 100 was last trading down at 0.24 percent, Germany's Dax was down by 0.03 percent, France’s CAC was up by 0.24 percent.
Commodities Recap
Oil prices dipped on Thursday after data showed U.S. crude stockpiles rose last week and the U.S. Energy Information Administration (EIA) downgraded its oil demand outlook, although the Brent benchmark stayed above $40 a barrel.
U.S. West Texas Intermediate (WTI) crude futures dipped 61 cents to $37.44 a barrel at 0808 GMT, after climbing 3.5% on Wednesday.
Brent crude futures fell 53 cents to $40.26 a barrel, after rising 2.5% the previous day.
Gold steadied near a one-week high on Thursday as the dollar weakened, but the metal traded in a narrow $8 range as investors held back from making large bets ahead of the European Central Bank’s monetary policy decision
Spot gold was little changed at $1,945.17 per ounce by 0641 GMT, after hitting its highest since Sept. 3 at $1,950.51 on Wednesday.U.S. gold futures dipped 0.1% to $1,952.40.