Posted at 08 October 2020 / Categories Market Roundups
Market Roundup
• Brazil Aug Retail Sales (MoM) 3.4%,3.1% forecast, 5.2% previous
• Brazil Aug Retail Sales (YoY) 6.1%,7.0% forecast, 5.5% previous
• Canada Sep Housing Starts 209.0K, 240.0K forecast, 262.4K previous
• US Jobless Claims 4-Week Avg 857.00K, 867.25K previous
• US Initial Jobless Claims 840K,820K forecast, 837K previous
• US Continuing Jobless Claims 10,976K, 11,400K forecast, 11,767K previous
• US Natural Gas Storage 75B, 73B forecast, 73B previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Average Cash Earnings (YoY) -1.3% previous
•23:30 Japan Aug Household Spending (YoY) -6.9%,-7.6% previous
•23:30 Japan Aug Household Spending (MoM) 3.2% forecast, -6.5% previous
•23:30 Japan Aug Overall wage income of employees -1.5% previous
•23:30 Japan Aug Overtime Pay (YoY) -17.10% previous
•01:30 Australia Home Loans (MoM) 10.7% previous
•01:45 China Sep Caixin Services PMI 54.0 previous
•01:45 Chinese Composite PMI 55.1 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro edged lower against dollar on Thursday as investors waited for fresh news on whether new U.S. fiscal stimulus is likely in the near term. The greenback has been whipsawed by swings in risk sentiment after U.S. President Donald Trump on Tuesday halted negotiations with Democrats on a new economic package, but later pushed for the approval of more targeted stimulus bills to offset economic damage from the coronavirus. The dollar index =USD was little changed against a basket of major currencies at 93.60. Immediate resistance can be seen at 1.1795 (Daily high), an upside break can trigger rise towards 1.1811 (Oct 6th high).On the downside, immediate support is seen at 1.1737 (9DMA), a break below could take the pair towards 1.1711 (38.2% fib).
GBP/USD: Sterling inched up against dollar on Thursday as prospects for a Brexit deal appeared to improve, with Britain giving it a 66% chance of success and a media report suggesting officials might be more optimistic than they were letting on in public. British Prime Minister Boris Johnson and European Council President Charles Michel agreed on Wednesday that some progress had been made in talks on a trade deal, though significant differences remained. The pound was last trading up 0.3% against the U.S. dollar. Immediate resistance can be seen at 1.2966 (50%fib), an upside break can trigger rise towards 1.3000(Psychological level).On the downside, immediate support is seen at 1.2863 (11 DMA), a break below could take the pair towards 1.2820 (38.2 % fib).
USD/CAD: The Canadian dollar rose to a more-than two-week high against the greenback on Thursday as higher oil prices and the potential for U.S. stimulus offset comments from Bank of Canada Governor Tiff Macklem, leaving negative interest rates on the table. The price of oil, one of Canada's major exports settled 3.1% higher at $41.19 a barrel on support from output shutdowns ahead of a storm in the U.S. Gulf of Mexico. The Canadian dollar was trading 0.4% higher at 1.3201 to the greenback. The currency touched its strongest intraday level since Sept. 21 at 1.3198.Immediate resistance can be seen at 1.3216 (50%fib), an upside break can trigger rise towards 1.3195 (5 DMA).On the downside, immediate support is seen at 1.3164(38.2%fib), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as revival of hopes for some U.S. spending improved investor sentiment and appetite for riskier currencies. President Donald Trump and House Speaker Nancy Pelosi seem open to pursuing a stimulus package for the airline industry, even though Trump halted talks with Democrats for a bigger plan. Investors also expect Joe Biden, if elected, would quickly spend money to stimulate growth. That mood has lifted equity markets and sunk the yen to a three-week low of 106.11. Strong resistance can be seen at 106.14 (Oct 7th high), an upside break can trigger rise towards 106.45 (Higher BB).On the downside, immediate support is seen at 105.83 (38.2%fib), a break below could take the pair towards 105.60 (11 DMA).
Equities Recap
European stocks hit a near three-week high on Thursday as investors globally pinned hopes on more U.S. stimulus even as coronavirus cases surged across the continent.
UK's benchmark FTSE 100 closed up by 0.53 percent, Germany's Dax ended down by 0.88 percent, France’s CAC finished the day up by 0.61 percent.
Wall Street’s main indexes rose to a one-month high on Thursday as comments by U.S. President Donald Trump raised hopes of fresh fiscal aid, while data showed a recovery in the labor market struggled to gain momentum.
Dow Jones closed up by 0.43% percent, S&P 500 closed up by 0.80 % percent, Nasdaq settled up by 0.50% percent.
Treasuries Recap
U.S. Treasury yields retreated on Thursday, with those on long-dated debt falling from four-month peaks hit earlier this week, amid persistent uncertainty about the stimulus talks on coronavirus aid.
In late afternoon trading, U.S. 10-year yields fell to 0.766%, from 0.785% late on Wednesday. Ten-year yields rose to their highest level since June on Wednesday.
Commodities Recap
Gold steadied on Thursday as uncertainty surrounding the U.S. presidential elections and bets that fresh stimulus would drive inflation offset downward pressure on bullion from a higher dollar and improved appetite for riskier assets.
Spot gold was little changed at $1,889.21 per ounce by 11:18 am EDT (1518 GMT) flipping back and forth between positive and negative territory. U.S. gold futures rose 0.2% to $1,893.70.
Oil rose to more than $43 a barrel on Thursday on support from output shutdowns ahead of a storm in the U.S. Gulf of Mexico and the possibility of supply cuts from Saudi Arabia and Norway.
Brent crude rose $1.13, or 2.7% to $43.12 at 12:20 EDT (1515 GMT), after falling 1.6% on Wednesday. U.S. West Texas Intermediate (WTI) crude added 99 cents, or 2.5%, to $40.94 after falling 1.8% on Wednesday.