Posted at 21 September 2020 / Categories Market Roundups
Market Roundup
•Greek Jul Current Account (YoY) -0.874B, -1.421B previous
•Spanish Trade Balance -0.31B, 1.48B previous
•Belgium Sep Consumer Confidence -16, -26 previous
•Chicago Aug Fed National Activity 0.79, 1.95 forecast, 1.18 previous
•Canada Aug New Housing Price Index (MoM) 0.5%,0.3% forecast, 0.4% previous
•French 12-Month BTF Auction -0.581%,-0.573% previous
•French 3-Month BTF Auction -0.574%, -0.574% previous
•French 6-Month BTF Auction -0.583%, 0.120% previous
Looking Ahead – Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•16:00 US FOMC Member Brainard Speaks
•22:00 US FOMC Member Williams Speaks
•22:00 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday as rising cases of COVID-19 rattled investors. Investors are becoming more cautious about Europe amid a sharp uptick in new COVID-19 cases. Denmark, Greece and Spain have introduced new restrictions on activity and Britain is considering a second national lockdown. The Financial Times, citing two European Central Bank governing council members, reported that the ECB had launched a review of its emergency bond purchase scheme introduced in response to the coronavirus crisis in March. Attention will turn to the state of the euro zone economic recovery later this week, with flash purchasing manager index data for September due on Wednesday. Immediate resistance can be seen at 1.1763(55DMA), an upside break can trigger rise towards 1.1831 (50%fib).On the downside, immediate support is seen at 1.1738 (38.2% fib ), a break below could take the pair towards 1.1648 (23.6%fib).
GBP/USD: Sterling was under pressure on Monday as rising COVID-19 cases prompted Britain to consider a second national lockdown. British Prime Minister Boris Johnson was pondering a second lockdown with new COVID-19 cases rising by at least 6,000 per day in Britain, hospital admissions doubling every eight days, and the testing system buckling. The United Kingdom already has the biggest official COVID-19 death toll in Europe at 41,777 people. The pound was down 0.3% against the dollar at $1.2876 by 0805 GMT and down 0.15% versus the euro at 0.9182. Immediate resistance can be seen at 1.2857 (38.2% fib), an upside break can trigger rise towards 1.2911 (5 DMA).On the downside, immediate support is seen at 1.2791(Daily low), a break below could take the pair towards 1.2712 (23.6%fib).
USD/CHF: The dollar rose against Swiss franc on Monday after the Federal Reserve said it would roll out an aggressive new strategy that aims to boost employment and allow inflation to run a bit faster for longer than in the past. The Fed also aims to ensure employment doesn’t fall short of its maximum level, a new approach Powell said reflected an appreciation that a robust job market can be sustained without causing an unwelcome increase in inflation. The dollar rebounded after initially falling in reaction to comments from Powell that investors had widely expected. Immediate resistance can be seen at 0.9165 (38.2% fib), an upside break can trigger rise towards 0.9206 (23.6% fib).On the downside, immediate support is seen at 0.9132(50% fib), a break below could take the pair towards 0.9101(61.8%fib).
USD/JPY: The dollar declined against the Japanese yen on Monday as stock markets tumbled and pushed investors to the perceived safety of the Japanese currency. Wall Street closed lower on Friday, and both Asian and European stock markets fell on Monday as the threat of new lockdowns amid rising cases of the COVID-19 disease made investors anxious about the global recovery. In early deals in London, the yen hit 104.065 against the dollar, gaining as much as half a percent. That was its highest level since March 12. 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 103.98 (Daily low ), a break below could take the pair towards 103.25(23.6% fib).
Equities Recap
European stocks were headed for their worst fall in three months on Monday as fears that a second wave of COVID-19 infections would lead to new social distancing measures hit travel and leisure shares and banks amid a new dirty money scandal.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading down at 3.55 percent, Germany's Dax was down by 4.20 percent, France’s CAC was last down by 3.67 percent.
Commodities Recap
Gold fell to its lowest in nearly two weeks on Monday as the dollar strengthened, while scepticism over additional stimulus measures from U.S. Federal Reserve policymakers’ speeches this week added further pressure.
Spot gold dropped 1% to $1,930.07 per ounce by 1211 GMT, having declined to its lowest since Sept. 9 at $1,928.14.U.S. gold futures fell 1.2% to $1,938.30 per ounce.
Oil prices fell on Monday, weakened by the possible return of Libyan production and as rising coronavirus cases stoked worries about global demand, although the market drew support as a tropical storm threatened to disrupt output in the U.S. Gulf of Mexico.
Brent crude was down $1.21 at $41.94 a barrel by 1346 GMT. U.S. crude fell $1.21 to $39.90 a barrel. Both contracts were set for their biggest daily drops in two weeks.