Posted at 14 September 2020 / Categories Market Roundups
Market Roundup
•Investors prepare for two-day Fed policy meeting
•Sweden Aug Unemployment Rate 9.1%,9.2% previous
•Finnish Aug CPI (YoY) 0.2% , 0.6% previous
•EU Jul Industrial Production (MoM) 4.1%,4.0% forecast, 9.1% previous
•EU Jul Industrial Production (YoY) -7.7%,-8.2% forecast, -12.3% previous
•13:00 French 6-Month BTF Auction-0.576%, -0.577% previous
•13:00 French 3-Month BTF Auction -0.574%,-0.569% previous
•13:00 French 12-Month BTF Auction -0.573%,-0.575% previous
Looking Ahead - Economic Data (GMT)
•14:00 US 6-Month Bill Auction 0.105% previous
•14:00 US 3-Month Bill Auction 0.115% previous
•17:00 Brazil Jul IBC-Br Economic Activity 3.40% forecast, 4.89% previous
Looking Ahead - Events, Other Releases (GMT)
•13:30 ECB's Lane Speaks
Fx Beat
EUR/USD: The euro edged higher against dollar on Monday as renewed hopes for a coronavirus vaccine after AstraZeneca resumed its phase-3 trial buoyed sentiment. A vaccine has long been awaited to help pull the world out of a coronavirus-induced lockdown. Later this week, the U.S. Federal Reserve will hold its two-day policy meeting where it is expected to hold rates while elaborating on the already-announced shift to inflation targeting. 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 1.1829 (5DMA), a break below could take the pair towards 1.1751 (Lower BB ).
GBP/USD: The pound rose against the dollar on Monday, as investors waited for a key Brexit vote and weighed up the chance of a no-deal Brexit.Sterling had its worst week in six months last week, as investors grew more pessimistic about the chances of a Brexit deal being reached before the December 2020 deadline. Britain threw Brexit trade talks into disarray last week by proposing legislation that would break international law by breaching parts of the Withdrawal Agreement which was signed in January. At 1230 GMT, the pound was at $1.2862, up 0.4% on the day. Immediate resistance can be seen at 1.2927 (55DMA), an upside break can trigger rise towards 1.2989 ( 50%fib).On the downside, immediate support is seen at 1.2882 (38.2% fib), a break below could take the pair towards 1.2771 (Sep 14th low).
USD/CHF: The dollar declined against the Swiss franc on Monday as many investors were cautious about taking new positions on greenback before the Fed’s policy meeting that concludes on Wednesday. Market participants are also waiting for the Bank of Japan and the Bank of England's policy decisions due on Thursday. Investors also took stock of uncertainty surrounding the UK's Brexit deal, as Prime Minister Boris Johnson's plan breaching parts of the treaty faces vote in parliament later in the day. Immediate resistance can be seen at 0.9098 (Daily high), an upside break can trigger rise towards 0.9121 (23.6%fib).On the downside, immediate support is seen at 0.9051 (Sep 10th low), a break below could take the pair towards 0.9022 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Monday as investors looked ahead to an event-packed week which includes a Fed meeting and the appointment of a new Japanese premier. This week’s U.S. Federal Reserve meeting will be its first since Chairman Jerome Powell unveiled a policy shift towards greater tolerance of inflation, effectively pledging to keep interest rates low for longer. The yen meanwhile rose 0.2% to around 105.92 yen to the dollar, a five-day high. Strong resistance can be seen at 106.16 (Daily high), an upside break can trigger rise towards 106.57 (Higher BB).On the downside, immediate support is seen at 105.80(Sep 9th low), a break below could take the pair towards 105.54 (38.2%fib).
Equities Recap
European stocks kicked off the week on a positive note as hopes of a coronavirus vaccine and a flurry of global M&A activity overshadowed worries about a disorderly Brexit. .
At (GMT 13:00),UK's benchmark FTSE 100 was last trading up at 0.12 percent, Germany's Dax was down by 0.01 percent, France’s CAC was up by 0.50 percent.
Commodities Recap
Gold prices rose on Monday supported by a weaker dollar, while investors looked forward to the U.S. Federal Reserve policy meeting later this week for more cues on stimulus measures and inflation target.
Spot gold was up 0.2% at $1,944.69 per ounce by 0647 GMT. U.S. gold futures rose 0.3% to $1,953.20.
Oil prices slipped slightly on Monday amid concerns about a stalled global economic recovery and worries over renewed Libyan supply, but were supported by an impending storm which has disrupted U.S. oil production.
Brent crude was down 11 cents, or 0.2%, at $39.72 a barrel while U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.3%, at $37.21 a barrel by 1105 GMT.