Posted at 14 October 2020 / Categories Market Roundups
Market Roundup
•Spanish Sep CPI (YoY) -0.4%,-0.4% forecast, -0.5% previous
•Spanish Sep CPI (MoM) 0.2%,0.2% forecast, 0.0% previous
•Spanish Sep HICP (YoY) -0.6%,-0.6% forecast, -0.6% previous
•Spanish Sep HICP (MoM) 0.4%,0.4% forecast, 0.0% previous
•EU Aug Industrial Production (MoM) 0.7%,0.8% forecast, 4.1% previous
•EU Aug Industrial Production (YoY) -7.2%,-7.2% forecast, -7.7% previous
•US MBA 30-Year Mortgage Rate 3.00%,3.01% previous
•US MBA Mortgage Refinance Index 3,612.3, 3,622.3 previous
Looking Ahead - Economic Data (GMT)
•12:30 US Sep Core PPI (MoM) 0.2% forecast, 0.4% previous
•12:30 US Sep Core PPI (YoY) 0.9%,0.6% previous
•12:30UK Labour Productivity (Q2) -0.6% previous
•12:30 US Sep PPI (MoM) 0.2% forecast, 0.3% previous
•12:30 US Sep PPI (YoY) 0.2%,-0.2% previous
•17:00 US Thomson Reuters IPSOS PCSI 50.62 previous
•17:30 Brazil Foreign Exchange Flows 0.029B previous
Looking Ahead - Economic events and other releases (GMT)
•13:00 US FOMC Member Clarida Speaks
•13:25 ECB's Enria Speaks
•14:30 Canada BoC Gov Council Member Lane Speaks
•14:30 US FOMC Member Quarles Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as investors remained cautious in light of diminishing hopes for a COVID-19 vaccine or U.S. fiscal stimulus. Johnson & said it was pausing a clinical trial of a coronavirus vaccine and Eli Lilly and Co also said it had paused a clinical trial of an antibody treatment. British drugmaker AstaZeneca Plc’s U.S. trial for a vaccine has been on hold for over a month. Euro zone industrial production data showed the rate of recovery slowed sharply in August, in line with expectations. The euro was last up 0.02% at $1.1747. 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 climbed from the day’s lows on Wednesday after a source close to the EU-UK Brexit talks said a trade deal is difficult but still possible and talks will continue in the coming weeks. The British pound had earlier retreated on uncertainty over whether Britain and the European Union will reach a Brexit deal before their self-imposed Thursday deadline at the EU Summit. Sterling was last up 0.4% at $1.2990, having touched a one-week low of $1.2865. Immediate resistance can be seen at 1.3009 (38.2% fib), an upside break can trigger rise towards 1.3083 (Higher BB).On the downside, immediate support is seen at 1.2879(23.6%fib), a break below could take the pair towards 1.2800 (Psychological level).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus kept investors cautious. Currency moves are likely to be subdued as the U.S. presidential election looms on Nov. 3.Sentiment is leaning against riskier bets, which should support the dollar in the coming days. Hopes are fading that U.S. Republicans and Democrats will reach a compromise on a new round of fiscal stimulus, which would deal a blow to the economic outlook. Immediate resistance can be seen at 0.9160 (38.2 % fib), an upside break can trigger rise towards 0.9170 (21DMA).On the downside, immediate support is seen at 0.9129 (5DMA), a break below could take the pair towards 0.9094 (23.6% fib ).
USD/JPY: The dollar declined against the Japanese yen Wednesday as another COVID-19 vaccine delay hurt demand for risk-linked assets put the dollar under pressure. Markets are grappling with angst about vaccine/antibody delays, angst about rising covid cases in Europe, stalled U.S. fiscal talks. Investors are also watching tensions between the European Union and Britain after the EU demanded “substantive” movement on Tuesday on fisheries, dispute settlement and guarantees of fair competition in their talks on a post-Brexit trade deal. 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 105.00 (Psychological level), a break below could take the pair towards 104.91 (Oct 2nd low).
Equities Recap
European shares fell on Wednesday as countries began to close schools and cancel surgeries on a resurgence of the COVID-19 pandemic, though sterling gained on hopes of further Brexit talks.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading down at 0.23 percent, Germany's Dax was down by 0.07 percent, France’s CAC was last down by 0.12 percent.
Commodities Recap
Gold firmed on Wednesday as uncertainties over a global economic recovery and the U.S. presidential election prompted investors to exploit a sharp pullback in the previous session to buy bullion.
Spot gold rose 0.2% to $1,895.16 per ounce by 0729 GMT, after shedding as much as 1.9% on Tuesday on the dollar’s jump. U.S. gold futures gained 0.2% to $1,897.30.
Oil prices edged down on Wednesday under pressure from growing concerns that a recovery in fuel demand will be stalled by soaring coronavirus cases around the world.
Brent crude futures for December fell by 6 cents to $42.39 a barrel by 0953 GMT while U.S. West Texas Intermediate futures were down 5 cents at $40.15.