Posted at 29 September 2020 / Categories Market Roundups
Market Roundup
• US Wholesale Inventories (MoM) 0.5%, -0.3% previous
• Canada Aug IPPI (MoM) -7.6%, 0.7%,0.7% previous
• Canada Aug RMPI (MoM) -2.3%, 3.0% previous
• US Aug Goods Trade Balance -82.94B, -80.11B previous
• US Aug Retail Inventories Ex Auto 0.9%,0.6% previous
• US Redbook (MoM) -0.3%,-0.9% previous
• US Redbook (YoY) 2.2%, 1.5% previous
• US Jul S&P/CS HPI Composite 3.9%,- 20 s.a. (MoM) 0.3% forecast, 0.0% previous
• US S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.9%, 3.8% forecast,3.5% previous
• US Sep Texas Services Sector Outlook 11.5, 4.7 previous
• US Sep Dallas Fed Services Revenues 14.0, 1.5 previous
• US Sep CB Consumer Confidence 101.8, 89.2 forecast, 84.8 previous
Looking Ahead – Economic data (GMT)
•23:50 Japan Aug Retail Sales (YoY) -3.5% forecast,-2.9% previous
•23:50 Japan Sep Industrial Production forecast 1m ahead (MoM) 4.0% previous
•23:50 Japan Oct Industrial Production forecast 2m ahead (MoM) 1.9% previous
•23:50 Japan Aug Industrial Production (MoM) 1.5% forecast, 8.7% previous
•00:00 New Zealand Sep ANZ Business Confidence -41.8 previous
•00:00 New Zealand Sep NBNZ Own Activity -17.5% previous
•01:00 China Sep Non-Manufacturing PMI 55.2 previous
•01:00 China Sep Manufacturing PMI 51.2 forecast, 51.0 previous
•01:30 Australia Aug Private Sector Credit (MoM) -0.1% previous
•01:30 Australia Aug Housing Credit 0.2% previous 0.2% previous
•01:30 Australia Aug Private House Approvals 8.5% previous
•01:30 Australia Aug Building Approvals (MoM) 12.0% previous
•01:45 China Sep Caixin Manufacturing PMI 53.1 forecast, 53.1 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro gained against dollar on Tuesday as investors booked profits on recent gains in the greenback and cautiously looked ahead to the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden.The U.S. currency fell to one-week lows against the euro and Swiss franc, and dropped against commodity currencies such as the Australian and New Zealand dollars as well as the Norwegian crown. The greenback also added to losses, as investors felt a little more confident getting out of the safe-haven currency after data showed U.S. consumer confidence rebounded more than expected in September, as households’ views of the labor market improved. Immediate resistance can be seen at 1.1765 (55DMA), an upside break can trigger rise towards 1.1801 (50%fib).On the downside, immediate support is seen at 1.1722 (38.2%fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling erased earlier gains against the dollar on Tuesday after Bank of England Governor Andrew Bailey warned the economic recovery may not be as strong going forward and did not entirely rule out using sub-zero interest rates if needed. Britain’s economic activity was probably about 7-10% weaker than before the coronavirus pandemic in the July-September period, Bailey said in an online speech to Queen’s University Belfast. Sterling last trading 0.1% higher at $1.2844 by 23:00 GMT after hitting $1.2902 earlier. Immediate resistance can be seen at 1.2887(Daily high), an upside break can trigger rise towards 1.2955(50% fib).On the downside, immediate support is seen at 1.2828 (38.2%fib), a break below could take the pair towards 1.2777(5DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as oil prices fell and investors waited for the currency to extend this month's decline before stepping in to buy it, with the loonie sticking to its recent trading range. U.S. crude oil futures settled 3.2% lower at $39.29 a barrel on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections. The loonie was trading 0.1% lower at 1.3381 to the greenback, or 74.73 U.S. cents, having matched intraday Friday's 7-week low at 1.3418. Immediate resistance can be seen at 1.3418(Sep 28th high), an upside break can trigger rise towards 1.3452 (23.6%fib).On the downside, immediate support is seen at 1.3378 (5DMA), a break below could take the pair towards 1.3367 (38.2%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as investors held off from making large moves ahead of the presidential debate later in the day and employment data due on Wednesday and Friday. Republican President Donald Trump and his Democratic rival Joe Biden will go head-to-head in their first televised debate on Tuesday evening. Former Vice President Joe Biden’s campaign has seized on a fresh line of attack on the eve of the debate with President Donald Trump set for after the U.S. market close accusing the Republican incumbent of gaming the system to avoid paying his fair share of taxes. Immediate resistance can be seen at 105.71 (38.2%fib), an upside break can trigger rise towards 105.93 (55 DMA ).On the downside, immediate support is seen at 105.64 (Daily low), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European stocks slipped on Tuesday after solid gains in the previous session, with banks, energy and insurance sectors sliding as coronavirus cases mounted globally.
UK's benchmark FTSE 100 closed down by 0.51 percent, Germany's Dax ended down by 0.35 percent, France’s CAC finished the day down by 0.23 percent.
Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table ahead of the first U.S. presidential debate.
Dow Jones closed down by 0.48 % percent, S&P 500 closed down by 0.48 % percent, Nasdaq settled up by 0.29 % percent.
Treasuries Recap
U.S. Treasury yields were slightly lower on Tuesday, trading within a tight range as investors held off from making large moves ahead of the presidential debate scheduled for later in the day and employment data to be released on Wednesday and Friday.
The 10-year yield opened at 0.658% on Tuesday and was last trading lower on the day at 0.641%.
Commodities Recap
Gold rose to its highest in nearly a week on Tuesday as the dollar weakened and hopes rose for additional fiscal stimulus for the American economy, ahead of the first U.S. presidential debate.
Spot gold gained 0.9% to $1,896.96 per ounce at 1:58 p.m. EDT (1758 GMT), while U.S. gold futures settled up 1.1% at $1,903.20.
Oil prices fell over 3% on Tuesday to their lowest in two weeks on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.
Brent futures for November delivery fell $1.40, or 3.3%, to settle at $41.03 a barrel, while the more active Brent contract for December fell 3.1% to settle at $41.56.
U.S. West Texas Intermediate (WTI) crude fell $1.31, or 3.2%, to settle at $39.29 per barrel