Posted at 18 September 2020 / Categories Market Roundups
Market Roundup
•UK Aug Retail Sales (YoY) 2.8%,3.0% forecast, 1.4% previous
• German Aug PPI (YoY) -1.2%, -1.4% forecast, -1.7% previous
•UK Aug Core Retail Sales (MoM) 0.6%,0.4% forecast, 2.0% previous
• UK Aug Retail Sales (MoM) 0.8%, 0.7% forecast, 3.6% previous
• UK Aug Core Retail Sales (YoY) 4.3%,4.2% forecast, 3.1% previous
• German Aug PPI (MoM) 0.0%, -0.1%forecast, 0.2% previous
•Italian Jul Industrial Sales (MoM) 8.10%,13.40% previous
•Italian Industrial New Orders (MoM ) 3.7%,23.4% previous
•EU Jul Current Account n.s.a. 25.5B, 17.3B previous
•EU Jul Current Account 16.6B, 20.7B previous
•Russia Sep Interest Rate Decision 4.25%,4.25% forecast,
•Canada Jul Retail Sales (MoM) 0.6%,1.0% forecast, 23.7%
•Canada Jul Core Retail Sales (MoM) -0.4%0,5% forecast, 15.7%
• US Aug Leading Index (MoM) 1.2,1.3%,1.4% previous
• US Sep Michigan Consumer Expectations 73.3, 67.8 forecast, 68.5 previous
• US Sep Michigan Current Conditions 87.5, 83.9 forecast, 82.9 previous
• US Sep Michigan Inflation Expectations 2.7%,3.1% previous
• US Michigan Consumer Sentiment 78.9, 75.0 forecast, 74.1 previous
• US Sep Michigan 5-Year Inflation Expectations 2.60%,2.70% previous
Looking Ahead – Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro gained against dollar on Friday as weak dollar and some risk-appetite supported euro, but persistent concerns about economic recovery limited gains. Poor economic data from the United States on Thursday further added to worries about the global economic recovery. The number of Americans filing new claims for unemployment benefits fell less than expected, suggesting the labor market shifted into low gear amid fading fiscal stimulus. Investors were shrugging off regional elections and a constitutional referendum in Italy due on September 20-21 as they do not expect risks of political instability after the vote. Immediate resistance can be seen at 1.1870 (Daily high), an upside break can trigger rise towards 1.1893 (61.8%fib).On the downside, immediate support is seen at 1.1827 (11DMA ), a break below could take the pair towards 1.1756 (50%fib).
GBP/USD: Sterling got support on Friday from data showing British shoppers kept increasing spending last month, taking sales further above their pre-COVID-19 levels, although the outlook for the pound remains bleak. British retail sales now stand 4.0% higher than before the crisis. The sector has enjoyed a faster rebound than the rest of the economy, helped by strong online demand.But the prospect of a chaotic end to the Brexit transition period in December if Britain fails to agree a trade deal with the European Union continues to overhang sterling. Immediate resistance can be seen at 1.2986 (50% fib), an upside break can trigger rise towards 1.3040 (14 DMA).On the downside, immediate support is seen at 1.2932 (Daily low), a break below could take the pair towards 1.2862 (23.6%fib).
USD/CHF: The dollar held tight ranges against Swiss franc on Friday after downbeat data cast a shadow over the economic outlook. The dollar gave up gains made after the Federal Reserve upgraded its 2020 economic forecast this week to trade in negative territory on Thursday. U.S. data on Thursday showed jobless claims remained elevated at 860,000, while housing starts and the Philadelphia Fed business index fell. The Fed said on Wednesday it expected the U.S. economy to shrink by far less than previously forecast in 2020 and promised to keep rates ultra-low for a prolonged period. Immediate resistance can be seen at 0.9108 (14DMA), an upside break can trigger rise towards 0.9121 (50% fib).On the downside, immediate support is seen at 0.9088 (38.2% fib), a break below could take the pair towards 0.9048 (23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as a batch of generally weak U.S. data and overall uncertainty about the economic outlook weighed on dollar. Thursday’s set of U.S. economic data added to the gloom in risk sentiment. U.S. jobless claims remained elevated at 860,000, while both housing starts and the Philadelphia Fed business index fell. The dollar fell 0.3% against the yen to 104.38 yen, after sliding to a seven-week low of 104.24. Strong resistance can be seen at 104.51 (38.2% fib), an upside break can trigger rise towards 105.00 (5DMA).On the downside, immediate support is seen at 104.24 (Daily low ), a break below could take the pair towards 104.00(Psychological level).
Equities Recap
European stocks struggled for momentum on Friday, with travel and bank stocks falling as a resurgence in coronavirus cases across the continent rekindled fears about the pandemic’s impact on a nascent economic recovery.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading down at 0.46 percent, Germany's Dax was down by 0.29 percent, France’s CAC was last down by 1.06 percent.
Commodities Recap
Gold prices rose on Friday as the dollar slipped, while lacklustre U.S. employment data and vows by major central banks to roll out further stimulus if required to revive their coronavirus-hit economies also bolstered the metal's appeal.
Spot gold climbed 0.4% to $1,951.13 per ounce by 0125 GMT, having fallen to a one-week low in the previous session.
Oil prices were mixed on Friday after Libyan commander Khalifa Haftar said a blockade on Libyan oil exports would be lifted for one month, countering more bullish signals from an OPEC meeting on Thursday.
Brent crude was down 17 cents at $43.13 a barrel by 1321 GMT while U.S. oil futures ticked up 6 cents to $41.03.