Posted at 11 September 2020 / Categories Market Roundups
Market Roundup
•US Aug Real Earnings (MoM) 0.3%, -0.6% previous
•US Aug CPI Index, s.a 259.68, 258.72 previous
•US Aug CPI, n.s.a (MoM ) 259.92, 259.52 forecast, 259.10 previous
•US Aug Core CPI (MoM) 0.4%, 0.2% forecast, 0.6% previous
•US Aug CPI (MoM) 0.4%, 0.3% forecast, 0.6% previous
•US Aug Core CPI (YoY) 1.7%, 1.6% forecast, 1.6% previous
•Canada Capacity Utilization Rate (Q2) 70.3%,70.2%,79.8% previous
•Russia Jul Trade Balance 4.25B, 5.50B, 5.29B previous
•UK NIESR GDP Estimate7.0%,-6.3% forecast, -7.9% previous
•US Aug Cleveland CPI (MoM) 0.3%, 0.3% previous
•U.S. Baker Hughes Total Rig Count 254, 256 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro strengthened on Friday as buyers stepped in after the European Central Bank showed no sign of stemming the single currency’s appreciation. At a press conference on Thursday, ECB President Christine Lagarde said the bank is not targeting exchange rates. She also struck a less dovish tone on the euro zone economy, as the ECB lifted its growth forecast for 2020. The euro rose 0.3% to $1.1840. It reached $1.1917 on Thursday, a one-week high. Immediate resistance can be seen at 1.1892 (61.8% fib), an upside break can trigger rise towards 1.1935 (Higher BB).On the downside, immediate support is seen at 1.1814 (50%fib), a break below could take the pair towards 1.1751 (50%fib ).
GBP/USD: The pound edged lower against the dollar on Friday as fears that Britain will end its post-Brexit transition period without agreeing any trading arrangements weighed on pound. A set of positive data for the UK economy also failed to cheer traders. The Office for National Statistics reported that UK economic output expanded by 6.6% in July after crashing by a record 20% in the second quarter.The economy grew for the third month in a row in July as pubs, restaurants and other sectors reopened but it remained around 12% smaller than its pre-pandemic level. At 18:00 GMT on Friday, the pound was down 0.03% to the dollar to $1.2800. Immediate resistance can be seen at 1.2877(38.2%fib), an upside break can trigger rise towards 1.2947( 5DMA).On the downside, immediate support is seen at 1.2747(23.6% fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/CAD: The Canadian dollar lost ground against its U.S. counterpart on Friday as equity markets turned lower and Bank of Canada Governor Tiff Macklem said it would take recent strengthening of the currency into consideration when deciding on policy. U.S. oil prices declined nearly 2% after U.S. data showed a surprise build in crude stockpiles last week related innpart to ongoing reductions at refineries along the Gulf of Mexico following Hurricane Laura. Immediate resistance can be seen at 1.3212(50%fib), an upside break can trigger rise towards 1.3253(Lower BB).On the downside, immediate support is seen at 1.3148(5 DMA), a break below could take the pair towards 1.3114 (38.2%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Friday, following a Labor Department report that job growth slowed further in August, threatening the economy’s recovery from the COVID-19 pandemic . Employment slowed and permanent job losses increased as programs to help businesses pay wages have lapsed or are on the verge of ending. Economists credited government largesse for the sharp rebound in economic activity after it nearly ground to a halt following the shuttering of businesses in mid-March. Strong resistance can be seen at 106.26 (Daily high), an upside break can trigger rise towards 106.83 (50%fib).On the downside, immediate support is seen at 106.05 (21DMA), a break below could take the pair towards 105.54 (38.2%fib).
Treasuries Recap
Bond yields fell on Friday after the U.S. Treasury on Thursday completed $108 billion in supply this week, and as investors remained doubtful that inflation will increase much even as consumer prices rose more than expected in August.
U.S. 10-year yields reflect pessimism that the Federal Reserve will be able to lift inflation to its target, despite fiscal stimulus and ongoing quantitative easing
Equities Recap
European shares turned flat after opening marginally lower on Friday, a day after the European Central Bank took a less dovish tone than expected on stimulus, while growing prospects of a no-deal Brexit kept risk sentiment subdued.
The UK's benchmark FTSE 100 closed down by 0.48 percent, FTSEurofirst 300 ended the day down by 0.20 percent, Germany's Dax ended up by 0.05 percent .
The S&P and Nasdaq were lower on Friday as early gains in the technology sector and growth names faded, with each of the three major Wall Street averages on track for their second straight weekly decline.
Dow Jones closed up by.46 percent, S&P 500 ended up 0.1 percent, Nasdaq finished the day down by 0.72 percent.
Commodities Recap
Gold edged lower on Friday on a lack of any further stimulus from the European Central Bank and the U.S. government, but the safe-haven commodity was set to end the week higher on concerns over an economic recovery.
Spot gold eased 0.3% at $1,948.80 per ounce by 10:56 a.m. EDT (1456 GMT), prices were up 0.8% so far this week. U.S. gold futures fell 0.4% to $1,957.10.
Oil prices fell further on Friday and were on track for a second weekly drop after U.S. stock markets tumbled and U.S. stockpiles rose unexpectedly.
Brent fell 28 cents, or 0.7%, at $30.78 a barrel by 1210 GMT, and U.S. crude was down 17 cents, or 0.5%, to $37.13 a barrel.