Posted at 06 October 2020 / Categories Market Roundups
Market Roundup
•German Aug Factory Orders (MoM) 4.5%,2.6% forecast, 2.8% previous
•German Sep IHS Markit Construction PMI 45.5, 48.0 previous
•UK Housing Equity Withdrawal (QoQ) -7.7B, -5.1B previous
•UK Sep Construction PMI 56.8, 54.0 forecast, 54.6 previous
• Canada Aug Imports 47.38B, 47.88B previous
•US Aug Trade Balance -67.10B, -66.10B forecast, -63.60B previous
• Canada Aug Trade Balance -2.45B,-2.00B forecast, -2.45B previous
• Canada Aug Exports 44.93B, 45.43B previous
•US Exports 171.90B, 168.10B previous
•US Redbook (MoM) 0.0%, -0.3% previous
•US Redbook (YoY) 2.1%, 2.2% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Sep CPI (YoY) 3.7% forecast, 3.6% previous
•13:00 Russia Sep CPI (MoM) -0.1% forecast, 0.4% previous
•14:00 US Aug JOLTs Job Openings 6.685M forecast, 6.618M previous
•15:20 New Zealand GlobalDairyTrade Price Index 3.6% previous
Looking Ahead - Economic events and other releases (GMT)
•14:40 US Fed Chair Powell Speak
•15:30 ECB's Lane Speaks
•15:45 US FOMC Member Harker Speaks
•22:00 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as dovish comments from the European Central Bank chief were offset by a brighter tone in world markets that supported euro.ECB President Christine Lagarde said a second wave of the coronavirus pandemic risks delaying the euro zone’s economic recovery.Her remarks appeared to reinforce an expectation in bond markets that more ECB stimulus is likely in the months ahead, especially given that euro zone inflation fell deeper into negative territory last month. Immediate resistance can be seen at 1.1798 (50% fib), an upside break can trigger rise towards 1.1878 (61.8%fib).On the downside, immediate support is seen at 1.1754 (5 DMA), a break below could take the pair towards 1.1711 (38.2% fib).
GBP/USD: Sterling edged higher against the dollar on Tuesday as investors pushed back expectations for when the Bank of England would cut interest rates below zero. The pound gained 0.3% to touch $1.3006, the first time it had broken the mark since mid-September, before pulling back a smidgeon. It was last up 0.1% at $1.2991.Money markets pushed back bets that Britain’s interest rates would turn negative, with investors now seeing rates falling below zero in May 2021. Previously they had expected the Bank of England to cut rates into negative territory in March. Immediate resistance can be seen at 1.2998 (50% fib), an upside break can trigger rise towards 1.3042 (Higher BB).On the downside, immediate support is seen at 1.2914 (5DMA), a break below could take the pair towards 1.2869 (38.2%fib).
USD/CHF: The dollar dipped against the Swiss franc on Tuesday as greenback’s appeal as a safe-haven asset diminished in the run-up to the U.S. presidential election. Optimism over fiscal stimulus in the world’s largest economy also came into play after upbeat weekend comments from Trump himself and U.S. House Speaker Nancy Pelosi, who said progress was being made on relief legislation. At ( GMT 12:35),greenback edged lower 0.11% versus the Swiss franc to 0.914.Immediate resistance can be seen at 0.9154 (38.2% fib), an upside break can trigger rise towards 0.92p0 (Psychological level).On the downside, immediate support is seen at 0.9128 (50DMA), a break below could take the pair towards 0.9090 (23.6%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Tuesday as stimulus hopes and suggestions Donald Trump’s health was improving brought relief to markets after last week’s rush to safety on uncertainty over the impact of the U.S. president’s COVID-19 infection Optimism over fiscal stimulus in the world’s largest economy also came into play after upbeat weekend comments from Trump himself and U.S. House Speaker Nancy Pelosi, who said progress was being made on relief legislation. The dollar traded in tight ranges, while riskier currencies gained, as investors awaited news about Trump’s health and developments in the fiscal talks in Washington. Strong resistance can be seen at 105.82(38.2% fib), an upside break can trigger rise towards 106.38 (Higher BB).On the downside, immediate support is seen at 105.52(5 DMA), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
A spate of dealmaking activity lifted European stocks in early trade on Monday along with an upbeat global mood on positive updates of U.S. President Donald Trump’s health.
At (GMT 12:40),UK's benchmark FTSE 100 was last trading higher at 0.39 percent, Germany's Dax was up by 0.83 percent, France’s CAC was trading up by 0.83 percent.
Commodities Recap
Gold held steady on Tuesday as a weaker dollar countered improved appetite for riskier assets after U.S. President Donald Trump left the hospital where he was being treated for COVID-19.
Spot gold was little changed at $1,912.81 per ounce by 0946 GMT, having hit its highest since Sept. 22 on Monday at $1,918.36.U.S. gold futures eased 0.1% to $1,918.50.
Oil prices gained on Tuesday amid supply disruptions in Norway, a new hurricane in the Gulf of Mexico, and U.S. President Donald Trump’s return to the White House from hospital.
Brent crude futures were up $1.02, or 2.5%, by 1220 GMT at $42.31 a barrel.U.S. West Texas Intermediate (WTI) crude futures were trading $1.02 higher, or 2.6%, at $40.24 a barrel.