Posted at 15 October 2020 / Categories Market Roundups
Market Roundup
•US Sep Core PPI (MoM) 0.4%,0.2% forecast, 0.4% previous
•US Sep Core PPI (YoY) 1.2% , 0.9%,0.6% previous
•US Sep PPI (MoM) 0.4%, 0.2% forecast, 0.3% previous
•US Sep PPI (YoY) 0.4%, 0.2%,-0.2% previous
•US Seevol Cushing Storage Report 3.923M, 0.882M previous
•US Thomson Reuters IPSOS PCSI 52.64, 50.62 previous
•Brazil Foreign Exchange Flows 0.234B ,0.029B previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Foreign Bonds Buying -341.3B previous
•23:50 Japan Foreign Investments in Japanese Stocks 530.9B previous
•00:00 Australia MI Inflation Expectations 3.1% previous
•00:00 Australia HIA New Home Sales (MoM) -14.4% previous
•00:30 Australia Sep Full Employment Change 36.2K previous
•00:30 Australia Sep Employment Change -35.0K forecast, 111.0K previous
•00:30 Australia Sep Unemployment Rate 7.1% forecast, 6.8% previous
•00:30 Australia Sep Participation Rate 64.8% forecast, 64.8% previous
•00:30 Australia NAB Quarterly Business Confidence-15 previous
•01:30 China Sep CPI (MoM) 0.3% forecast, 0.4% previous
•01:30 China Sep CPI (YoY) 1.8% , 2.4% previous
•01:30 China PPI (YoY ) -1.8% forecast, -2.0% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currencies Summaries
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 $1.3016, 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/CAD: The Canadian dollar steadied against its broadly weaker U.S. counterpart on Wednesday, as fading prospects of U.S. stimulus weighed on investor sentiment and investors took some profits after the currency notched a five-week high the previous day. The price of oil, one of Canada's major exports, settled 2.1% higher at $41.04 a barrel but Wall Street dropped as U.S. Treasury Secretary Steven Mnuchin said that a stimulus deal would not likely be made before the presidential election in November. Immediate resistance can be seen at 1.3158 (38.2%fib), an upside break can trigger rise towards 1.3215 (50%fib).On the downside, immediate support is seen at 1.3096 (23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen Wednesday as markets remained cautious in light of waning hopes for a COVID-19 vaccine or U.S. fiscal stimulus. The dollar gained on concerns about the length of time before a COVID-19 vaccine would be available and on diminishing expectations a fresh fiscal stimulus package would be agreed upon in the United States before the Nov. 3 presidential election. 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 headed lower on Wednesday after tumbling in the previous session over a halt in COVID-19 vaccine trials and uncertainty over more U.S. stimulus, with investors also staying away from big bets ahead of talks on a Brexit trade deal.
UK's benchmark FTSE 100 closed down by 0.58 percent, Germany's Dax ended down by 0.58 percent, France’s CAC finished the day upby 0.07percent.
Wall Street finished weaker on Wednesday, led lower by Amazon and Microsoft, as investors lost hope that a U.S. fiscal stimulus would be approved before the presidential election in November.
Dow Jones closed down by 0.58% percent, S&P 500 closed down by 0.66% percent, Nasdaq settled down by 0.80% percent.
Treasuries Recap
U.S. Treasury yields drifted mostly lower on Wednesday as Treasury Secretary Steve Mnuchin said a deal to combat the economic fallout from the coronavirus pandemic appeared unlikely before the Nov. 3 presidential election.
The benchmark 10-year yield was last down less than a basis point at 0.7223%.
Commodities Recap
Gold gained 1% on Wednesday, rebounding from a sharp decline in the previous session, as the dollar weakened and uncertainties surrounding the U.S. election and global economic recovery boosted the safe haven metal’s allure.
Spot gold was up 1% to $1,910.06 per ounce by 9:54 a.m. EDT (1354 GMT). U.S. gold futures rose 1.1% to $1,914.70.
Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases.
Brent crude futures for December delivery settled up 87 cents, or 2.05%, at $43.32 a barrel. U.S. West Texas Intermediate futures also traded higher, settling up 84 cents, 2.09%, at $41.04 a barrel.