Posted at 20 October 2020 / Categories Market Roundups
Market Roundup
•US Sep Housing Starts1.415M, 1.457M forecast, 1.416M previous
•US Sep Housing Starts (MoM) 1.9%,-6.7% previous
•US Sep Building Permits 1.553M, 1.520M forecast, 1.476M previous
•US Sep Building Permits (MoM) 5.2%,-0.5% previous
•US Redbook (MoM) 1.0%, 0.4% previous
•US Redbook (YoY) 2.5%, 1.2% previous
•New Zealand GlobalDairyTrade Price Index 0.4%,2.2% previous
•Russia Sep Unemployment Rate 6.3%,6.4% forecast, 6.4% previous
•Russian Real Wage Growth (YoY) 0.1%,1.5% forecast, 2.3% previous
•Russian Sep Retail Sales (YoY) -3.0%,-2.1% forecast, -2.7% previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia MI Leading Index (MoM) 0.5% previous
•03:00 New Zealand Credit Card Spending (YoY) -11.9% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 Japan BoJ Board Member Sakurai Speaks
Currencies Summaries
EUR/USD: The euro rebounded to a one-week high against dollar on Tuesday as global stocks recovered from early losses with investors broadly in consolidation mode before the No. 3. U.S. presidential election. Markets stayed within well-worn recent ranges as fading hopes for a U.S. coronavirus aid package combined with rising infections in Europe kept the overall mood cautious. The euro, last up 0.49%, hit a one-month high of $1.184 versus the greenback. Immediate resistance can be seen at 1.1837(23.6%fib), an upside break can trigger rise towards 1.1900 (Psychological level).On the downside, immediate support is seen at 1.1798 (38.2% fib), a break below could take the pair towards 1.1766 (50%fib).
GBP/USD: The British pound little changed against dollar on Tuesday as investors searched for clues on how likely it was for Britain to reach a trade deal with the European Union by the end of the year. Price actions suggest investors lean towards a scenario where both parties eventually will agree on some sort of a deal, as they did last year over the divorce agreement. Sterling was last trading flat both against the U.S. dollar at $1.2944 and against the euro at 90.98 pence. Immediate resistance can be seen at 1.2984(38.2% fib), an upside break can trigger rise towards 1.3077 (50%fib).On the downside, immediate support is seen at 1.2895 (Lower BB), a break below could take the pair towards 1.2853 (23.6%fib).
USD/CAD: The Canadian dollar extended this month's rally against its U.S. counterpart on Tuesday, as signs of progress on U.S. economic stimulus talks boosted risk appetite and domestic data showed across-the-board gains for home prices in September. Stimulus could help cushion the economic shock from the coronavirus pandemic. Canada sends about 75% of its exports to the United States, including oil.U.S. crude oil futures settled 1.5% higher at $41.46 a barrel, while the Canadian dollar was up 0.6% at 1.3119 to the greenback. It touched its strongest intraday level since last Tuesday at 1.3100. Immediate resistance can be seen at 1.3167 (5DMA), an upside break can trigger rise towards 1.3190 (38.2%fib).On the downside, immediate support is seen at 1.3105 (23.6%fib) break below could take the pair towards 1.3053 (Lower BB).
USD/JPY: The dollar was little changed against the Japanese yen on Tuesday as investors awaited the outcome of stimulus talks. Markets are in a wait-and-see mode in regards to the stimulus plan.U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin “continued to narrow their differences” on the stimulus package, Pelosi’s spokesman Drew Hammill said. At (GMT 20:57), greenback gained 0.07% versus the Japanese yen to 105.50. Strong resistance can be seen at 105.80 (50%fib), an upside break can trigger rise towards 105.82 (61.8%fib).On the downside, immediate support is seen at 105.48 (21DMA), a break below could take the pair towards 105.11 (23.6%fib).
Equities Recap
European stocks slipped on Tuesday as tighter coronavirus curbs across the continent and doubts over fresh U.S. stimulus ahead of the presidential election curbed optimism from strong earnings from Swiss bank UBS and others.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down by 0.05 percent, France’s CAC finished the day down by 0.40 percent.
Wall Street’s main indexes climbed on Tuesday on growing signs that U.S. lawmakers were making headway in their talks over stimulus to support an economic recovery from the impact of the COVID-19 pandemic.
Dow Jones closed down by 0.40% percent, S&P 500 closed up by 0.47% percent, Nasdaq settled up by 0.33% percent.
Treasuries Recap
Benchmark U.S. Treasury yields hit four-month highs on Tuesday and the yield curve steepened as hopes grew that U.S. lawmakers will agree on a deal for new stimulus.
Benchmark 10-year note yields rose four basis points on the day to a high of 0.801%, the highest since June 10. 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 edged higher on Tuesday as the dollar weakened and hopes for a U.S. coronavirus aid package ahead of the presidential election boosted bullion’s appeal as an inflation hedge.
Spot gold rose 0.4% to $1,912.71 per ounce by 1:53 p.m. EDT (1753 GMT). U.S. gold futures settled up 0.2% at $1,915.40.
Oil edged up on Tuesday on hopes that the United States was nearing a stimulus deal, but the threat to demand from rising coronavirus cases worldwide and increased Libyan output kept prices from moving higher.
Brent crude futures gained 20 cents to $42.82 a barrel by 1:21 p.m. EDT (1721 GMT).