Posted at 12 October 2020 / Categories Market Roundups
Market Roundup
• Russia Aug Trade Balance 6.90B forecast,4.25B previous
• French 12-Month BTF Auction -0.611% previous
• French 3-Month BTF Auction -0.636% previous
• French 6-Month BTF Auction -0.609% previous
Looking Ahead - Events, Other Releases (GMT)
•23:00 Japan Oct Reuters Tankan Index -29
•23:00 UK Sep BRC Retail Sales Monitor (YoY) 4.7% previous
•23:50 Japan M2 Money Stock (YoY) 8.6% previous
•23:50 Japan Sep M3 Money Supply 1,907.1T previous
•00:30 Australia Oct NAB Business Survey -6 previous
•03:00 China Trade Sep Balance (USD) 58.00B forecast, 58.93B previous
•03:00 China Trade Imports (YoY) 0.3% forecast, -2.1% previous
•03:00 China Sep Exports (YoY) 10.0% forecast, 9.5% previous
Currencies Summaries
EUR/USD: The euro edged lower against dollar on Monday as worries about rising COVID-19 cases in Europe and the United States weighed on euro. European countries were considering adding fresh travel curbs due to rising coronavirus, a contrast to Asia-Pacific countries including Singapore, Australia and Japan, where a gradual easing of some international travel restrictions is under way. Still, U.S. and European markets were trading higher as investors hoped for coronavirus aid in the United States, with the Trump administration on Sunday calling on Congress to pass a stripped-down relief bill. Immediate resistance can be seen at 1.1820 (50%fib), an upside break can trigger rise towards 1.1884 (50%fib).On the downside, immediate support is seen at 1.1777 (5DMA), a break below could take the pair towards 1.1745 (23.6% fib).
GBP/USD: Sterling edged lower against the dollar on Monday with British Prime Minister Boris Johnson expected to announce new restrictions as the COVID-19 outbreak accelerates, but hopes for a Brexit deal kept the currency above the key $1.30 level. Johnson will hold a meeting of the government’s emergency COBRA committee and then address parliament. His three-tiered local lockdowns will include shutting bars, gyms, casinos and bookmakers in some areas placed onto the very high alert level, probably across the north of England. Immediate resistance can be seen at 1.3063 (50%fib), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2941 (38.2%fib), a break below could take the pair towards 1.2876 (20DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as Canadian dollar was driven by last week’s domestic data showing a faster pace of job gains and rising hopes of U.S. stimulus. Also adding to support for the loonie, has been the move higher in equities. Shares rose globally on Monday as investors looked to Washington to unveil more fiscal stimulus to aid the economy. The currency touched its strongest level since Sept. 4th at 1.3104. The Canadian dollar was trading 0.5% higher at 1.3112 to the greenback .Immediate resistance can be seen at 1.3413 (5 DMA), an upside break can trigger rise towards 1.3433 (38.2% retracement level).On the downside, immediate support is seen at 1.3288 (61.8% retracement level), a break below could take the pair towards 1.3267 (50 DMA).
USD/JPY: The dollar declined against the Japanese yen on Monday as weak U.S. data and overall uncertainty about the economic outlook weighed on greenback. U.S. jobless claims remained elevated at 860,000, while both housing starts and the Philadelphia Fed business index fell. The dollar fell 0.3% against the yen to 104.69 yen, after sliding to a seven-week low of 104.52. The U.S. dollar index was steady, having seen its biggest loss in six weeks on Friday, when investors upped their bets that a fiscal stimulus package would be agreed to mitigate the economic fallout from COVID-19. Strong resistance can be seen at 105.82 (38.2% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.34 (20DMA), a break below could take the pair towards 105.10(23.6% fib).
Equities Recap
European shares crept higher on Monday, tracking gains in Asia that were fuelled by optimism over a rebound in China’s economy, while investors remained cautious about a surge in domestic coronavirus cases.
UK's benchmark FTSE 100 closed down by 0. 0.25 percent, Germany's Dax ended up by 0.67 percent, France’s CAC finished the day up by 0. 66 percent.
Wall Street surged on Monday, fueled by expectations of a coronavirus relief package and by a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season.
Dow Jones closed up by 0.88 percent, S&P 500 ended up by 1.64 percent, Nasdaq finished the day up by 2.56 percent.
Commodities Recap
Gold slipped from a three-week peak on Monday as the dollar recovered some ground, but the prospect of more U.S. coronavirus relief spending and uncertainty surrounding next month’s presidential election put a floor under prices.
Spot gold was down 0.2% at $1,925.56 per ounce at 1213 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session.U.S. gold futures edged up 0.2% to $1,931.50.
Oil prices settled about 3% lower on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.
Brent crude settled down $1.13, or 2.6%, to $41.72 a barrel. U.S. West Texas Intermediate ended 2.9%, or $1.17, lower at $39.43.