Posted at 19 October 2020 / Categories Market Roundups
Market Roundup
• Canada Wholesale Aug Sales (MoM) 0.3%, 0.3%forecast, 4.3% previous
• French 6-Month BTF Auction -0.678%,-0.637% previous
• French 3-Month BTF Auction -0.685% , -0.656% previous
• US Oct NAHB Housing Market Index 85, 83, 83 previous
• US 3-Month Bill Auction0.100%, 0.105% previous
• US 6-Month Bill Auction 0.115%, 0.115% previous
Looking Ahead - Economic Data (GMT)
• 01:30 China PBoC Loan Prime Rate 3.85% previous
• 01:30 China Sep House Prices (YoY) 4.8% previous
Looking Ahead - Economic events and other releases (GMT)
•00:30 RBA Meeting Minutes
Currencies Summaries
EUR/USD: The euro declined against dollar on Monday before a series of speeches from European Central Bank policymakers, with investors looking for clues on monetary policy easing before the end of the year. Greenback came under downside pressure after House Speaker Nancy Pelosi said that she believed stimulus legislation could be pushed through before Election Day, while acknowledging an agreement would have to come by Tuesday for that to happen. Immediate resistance can be seen at 1.1802 (23.6%fib), an upside break can trigger rise towards 1.1828 (38.2%fib).On the downside, immediate support is seen at 1.1766 (38.2% fib), a break below could take the pair towards 1.1734 (50%fib).
GBP/USD: The British pound gained against dollar on Monday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks.Britain said the door was still open if the European Union wanted to make some small concessions, but that unless the bloc budged there would be a no-deal exit in 10 weeks.EU and UK Brexit negotiators, Michel Barnier and David Frost, will discuss continuing trade talks over the phone around 1300 GMT on Monday after British Prime Minister Boris Johnson said there was no point in continuing talks. Immediate resistance can be seen at 1.3025 (Daily high), an upside break can trigger rise towards 1.3077 (50%fib).On the downside, immediate support is seen at 1.2973 (38.2%fib), a break below could take the pair towards 1.2859(23.6%fib).
USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Monday, giving back earlier gains, as an uncertain outlook for U.S.stimulus countered encouraging economic data from China. Data showed China's economic rebound from the coronavirus pandemic accelerated in the third quarter. U.S. crude oil futures settled 0.1% lower at $40.83 a barrel. Oil is one of Canada's major exports. The Canadian dollar was trading nearly unchanged at 1.3184 to the greenback, having traded in a range of 1.3150 to 1.3194. It has gained 1% this month. Immediate resistance can be seen at 1.3219 (38.2%fib) break can trigger rise towards 1.3250(Higher BB).On the downside, immediate support is seen at 1.3131 (23.6%fib), a break below could take the pair towards 1.3066 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen Monday as COVID-19 vaccine delay and fading hopes for any US fiscal stimulus before the election put the dollar under pressure. Markets are grappling with angst about vaccine/antibody delays, angst about rising covid cases across the globe and stalled U.S. fiscal talks. Global coronavirus cases rose by more than 400,000 for the first time late on Friday, a record one-day increase as much of Europe enacts new restrictions to curb the outbreak. Strong resistance can be seen at 105.51 (50%fib), an upside break can trigger rise towards 105.82 (61.8%fib).On the downside, immediate support is seen at 105.13 (38.2%fb), a break below could take the pair towards 104.99 (Lower BB).
Equities Recap
European shares ended lower on Monday as surging COVID-19 cases raised the possibility of further economic restrictions, outweighing optimism from signs of progress on a Brexit trade deal and hopes of fiscal stimulus in the United States.
UK's benchmark FTSE 100 closed down by 0.58 percent, Germany's Dax ended down by 0.42 percent, France’s CAC finished the day up by 0.13 percent.
Wall Street’s main indexes closed lower on Monday as Washington lawmakers still appeared to struggle to reach an agreement on coronavirus stimulus ahead of a Tuesday deadline that would make a relief package possible ahead of the Nov. 3 elections.
Dow Jones closed down by 1.44 percent, S&P 500 closed down by 1.63 percent, Nasdaq settled down by 1.65% percent.
Treasuries Recap
U.S. Treasury yields came off their highs on Monday as optimism ebbed that U.S. lawmakers will reach a deal to launch new stimulus in the near term, though the yields held higher on the day.
Benchmark 10-year note yields rose two basis points on the day to 0.762%, after earlier getting as high as 0.781%. The yields have traded in a tight range from 0.50% to 0.80% since April, with the exception of a brief spike to 0.96% in early June.
Commodities Recap
Gold rose about 1% on Monday as the dollar retreated and expectations for a U.S. stimulus deal ahead of the Nov. 3 presidential elections bolstered bullion's appeal as an inflation hedge.
Spot gold rose 0.4% to $1,906.36 per ounce by 1:49 p.m. EDT (1749 GMT). U.S. gold futures settled up 0.3% to $1,911.70.
Oil edged lower on Monday, weighed by concerns over surging coronavirus cases globally and by Libya’s plan to boost output, but hopes for a U.S. fiscal package lent some support.
Brent crude futures fell 31 cents to settle at $42.62 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 5 cents to settle at $40.83 a barrel.