Posted at 14 October 2020 / Categories Market Roundups
Market Roundup
•US Sep Core CPI (MoM) 0.2%, 0.2% forecast,0.4% previous
•US CPI, Sep n.s.a (MoM) 0.14%, 0.32% previous
•US Sep Real Earnings (MoM) 0.2%, 0.3% previous
•US Sep CPI Index, s.a 260.21,259.68 previous
•US Sep CPI Index, n.s.a. 260.28 260.35, 259.92 previous
•US Sep CPI (MoM) 0.2%,0.2% forecast,0.4% previous
•US Sep CPI (YoY) 1.4%, 1.4%,1.3% previous
•US Sep Core CPI Index 269.26, 268.75 previous
•US Sep Core CPI (YoY) 1.7%,1.8% forecast, 1.7% previous
• US Sep Cleveland CPI (MoM) 0.3% previous
• US 3-Month Bill Auction 0.105%, 0.095%% previous
• US 6-Month Bill Auction 0.115%, 0.110% previous
Looking Ahead – Economic Data Ahead (GMT)
•04:30 Japan Aug Industrial Production (MoM) 1.7% previous
•04:30 Japan Aug Capacity Utilization (MoM) 9.6% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events ahead
Currencies Summaries
EUR/USD: The euro dipped against dollar on Tuesday after data showed German ZEW investor sentiment fell more than expected in October. Investor sentiment in Germany fell by more than expected in October as a rise in coronavirus cases and the risk of no Brexit trade deal increased uncertainty about the outlook for Europe’s largest economy, the ZEW economic research institute said. The survey of investors’ economic sentiment fell to 56.1 from 77.4 points the previous month, ZEW said on Tuesday. Immediate resistance can be seen at 1.1776(5DMA), an upside break can trigger rise towards 1.1810(38.2%fib).On the downside, immediate support is seen at 1.1730 (23.6% fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling declined against the dollar on Tuesday, as investors singled out news out of Brexit negotiations as the sole driver of the currency’s future short-term direction. Recent reports have shown that the European Union wants more concessions from Britain before entering a last, intense phase of negotiations. The two chief negotiators, the EU’s Michel Barnier and Britain’s David Frost, say they are inching towards a deal, though they have underscored that important gaps remain on fishing, level playing field issues and governance. Immediate resistance can be seen at 1.2940(38.2% fib), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2885 (5 DMA), a break below could take the pair towards 1.2809 (23.6%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday after a high-profile COVID-19 vaccine trial was paused, crimping risk appetite, with the currency pulling back from an earlier five-week high. The loonie was trading 0.2% lower at 1.3143 to the greenback. Oil was supported by robust economic data from China, but gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise. U.S. crude oil futures settled nearly 2% higher at $40.20 a barrel. The currency touched its strongest intraday level since Sept. 8 at 1.3095. Immediate resistance can be seen at 1.3158(38.2%fib), an upside break can trigger rise towards 1.3214 (38.2%fib).On the downside, immediate support is seen at 1.3091 (23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to greenback. Moves are likely to be subdued as the U.S. presidential election looms on Nov. 3, but sentiment is leaning against riskier bets, which should support the dollar in the coming days. The dollar was 0.01 percent higher versus the Japanese yen at 105.31. Strong resistance can be seen at 105.51 (5 DMA), an upside break can trigger rise towards 105.82 (38.2%fib).On the downside, immediate support is seen at 107.25 (21 DMA), a break below could take the pair towards 104.91 (Oct2ndlow).
Equities Recap
European shares fell on Tuesday as Johnson & Johnson’s move to pause its COVID-19 clinical trials raised doubts about the timeline of a vaccine, while bank stocks tracked a slide in bond yields on bets of more stimulus by the European Central Bank.
UK's benchmark FTSE 100 closed down by 0.53 percent, Germany's Dax ended down by 0.91 percent, France’s CAC finished the day down by 0.64 percent.
Wall Street lost ground on Tuesday, with halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season got underway.
Dow Jones closed down by 0.55% percent, S&P 500 closed down by 0.63% percent, Nasdaq settled down by 0.10% percent.
Treasuries Recap
U.S. Treasury yields moved lower on Tuesday as disparate views in Washington over the next move on coronavirus aid contributed to a risk-off tone in markets.
The benchmark 10-year yield was last down 4.4 basis points at 0.7305%.
Commodities Recap
Gold steadied on Tuesday, buoyed by optimism a U.S. stimulus package would eventually be passed, bolstering the metal’s appeal as an inflation hedge although gains were capped by a firmer dollar.
Spot gold was steady at $1,921.71 per ounce. U.S. gold futures eased 0.2% to $1,924.50.
Oil prices rebounded on Tuesday, supported by robust economic data from China that offset returning supply in other regions but gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise.
Brent crude futures ended up 73 cents, or 1.8%, to $42.45 a barrel while U.S. West Texas Intermediate (WTI) crude futures settled up 77 cents, or about 2%, to $40.20 a barrel.