Posted at 24 September 2020 / Categories Market Roundups
Market Roundup
• US Jul House Price Index 293.0, 289.9 previous
• US Jul House Price Index (MoM) 1.0%, 0.9% previous
• US Jul House Price Index (YoY) 6.5% ,5.7% previous
•US Sep Manufacturing PMI 53.5, 53.1 forecast, 53.1 previous
•US Sep Services PMI 54.6, 54.7 forecast, 55.0 previous
•US Sep Markit Composite PMI 54.4, 54.6 previous
•US Gasoline Inventories -4.025M, -0.648M forecast, -0.381M previous
Looking Ahead – Economic Data (GMT)
•23:50 Japan Foreign Bonds Buying 300.1B previous
•23:50 Japan Foreign Investments in Japanese Stocks -896.0B
•05:00 Japan BoJ Core CPI (YoY) 0.0% previous
•05:00 Japan Coincident Indicator (MoM) 1.8% previous
•05:00 Japan Leading Index 86.9 previous
Looking Ahead - Events, Other Releases (GMT)
•23:50 Japan Monetary Policy Meeting Minutes
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday as data showed resurgence in coronavirus infections slammed the Euro zone services industry into reverse. IHS Markit’s flash Purchasing Managers’ Index sank to 50.1 in September from August’s 51.9, only just above the 50 mark separating growth from contraction and well below the median forecast for a modest dip to 51.7. The flash PMI for the euro zone service industry plummeted to 47.6 from 50.5, significantly below the breakeven mark and falling short of even the most pessimistic forecast that had predicted a reading of 50.5.Immediate resistance can be seen at 1.1774 (5 DMA), an upside break can trigger rise towards 1.1803 (5DMA).On the downside, immediate support is seen at 1.1737 (38.2% fib), a break below could take the pair towards 1.1640 (23.6%fib).
GBP/USD: The pound declinedagainst the dollar on Wednesday as the looming risk of a no-deal Brexit, talk of negative rates, and new UK lockdown measures all weighed on the currency. Prime Minister Boris Johnson ordered restaurants and bars to close early and told British people to work from home where possible, in new measures which he said could last for six months. The pound fell on the news, dipping below its 200-day moving average overnight, with losses compounded by a bounce back in the dollar, which has seen cable fall for three days straight. Immediate resistance can be seen at 1.2758 (Daily high), an upside break can trigger rise towards 1.2827 (38.2%fib).On the downside, immediate support is seen at 1.2668 (23.6%fib), a break below could take the pair towards 1.2589 (Lower BB).
USD/CAD: The Canadian dollar fell to a six-week low against its broadly stronger U.S. counterpart on Wednesday as investors ditched commodity-linked currencies due to worries about rising coronavirus cases, while Ottawa promised more economic support. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade. The loonie was trading 0.6% lower at 1.3376 to the greenback. The loonie touched its weakest intraday level since Aug. 10 at 1.3381, while the safe-haven U.S. dollar expanded on its eight-week high. Immediate resistance can be seen at 1.3391(50%fib), an upside break can trigger rise towards 1.3448(38.2%fib).On the downside, immediate support is seen at 1.3386 (61.8%fib), a break below could take the pair towards 1.3312 (5DMA).
USD/JPY: The dollar rose against the Japanese yen on Wednesday as investors questioned the pace of the global economic recovery on rising coronavirus cases and weak economic data in Europe while investors grappled with U.S. policy uncertainty. The dollar, which measures the greenback against a basket of six major currencies . It was last up 0.43% at 94.385 after earlier hitting 94.435, its highest level since July 24. The Japanese yen weakened 0.40% versus the greenback at 105.31 per dollar. Strong resistance can be seen at 105.30 (11 DMA), an upside break can trigger rise towards 105.49 (38.2%fib).On the downside, immediate support is seen at 104.81 (5DMA ), a break below could take the pair towards 104.44(23.6% fib).
Equities Recap
European stocks rose on Wednesday, as a rebound in beaten-down travel stocks and gains for Adidas and other sports names took the edge off data that highlighted an uneven path for economic recovery in the euro zone.
UK's benchmark FTSE 100 closed up by 1.20 percent, Germany's Dax ended up by 0.39 percent, France’s CAC finished the day up by 0.62 percent.
Wall Street’s main indexes fell sharply on Wednesday after data showing a cooling of U.S. business activity and the stalemate in Congress over more fiscal stimulus heightened concerns about the economy while the coronavirus pandemic remains unchecked.
Dow Jones closed down by 1.92% percent, S&P 500 closed down by 2.38% percent, Nasdaq settled up by 3.02% percent.
Treasuries Recap
U.S. Treasury yields edged higher on Wednesday as comments from a flurry of Federal Reserve officials reinforced the central bank's recently announced policy stance.
The yield on 10-year Treasury notes was up 1.3 basis points at 0.677 percent.
Commodities Recap
Gold prices hit a six-week low on Wednesday as the dollar strengthened on concerns about rising coronavirus cases in Europe, while doubts emerged over further stimulus from the U.S. Federal Reserve.
Spot gold fell 1.2% to $1,877.52 per ounce by 801 GMT. Earlier in the session, bullion hit its lowest since Aug. 12 of $1,873.70. U.S. gold futures were down 1.4% at $1,882.50, while the dollar index hit an eight-week high.
Oil prices edged higher on Wednesday, supported by U.S. government data that showed crude and fuel inventories dropped last week, though concerns about the ongoing coronavirus pandemic capped gains.
Brent crude rose 5 cents to settle at $41.77 a barrel. U.S. West Texas Intermediate crude gained 13 cents to settle at $39.93 a barrel.