Posted at 21 October 2020 / Categories Market Roundups
Market Roundup
•Canada Sep New Housing Price Index (MoM) 1.2%, 0.5%forecast ,0.5% previous
•Canada Aug Retail Sales (MoM) 0.4%,1.1% forecast, 0.6% previous
•Canada Aug Core Retail Sales (MoM) 0.5%, 0.9% forecast,-0.4% previous
•Canada Trimmed CPI (YoY) 1.8%,1.7% previous
•Canada Median CPI (YoY) 1.9%, 1.9% previous
•Canada Sep CPI (YoY) 0.5%,0.4% forecast,0.1% previous
•Canada Sep CPI (MoM) -0.1%, -0.1% forecast, -0.1% previous
•Canada Sep Core CPI (MoM) 0.1%, 0.0% previous
• US Seevol Cushing Storage Report 1.180M, 3.923M previous
• US Gasoline Inventories 1.895M,-1.829M forecast, -1.626M previous
• US Heating Oil Stockpiles 0.350M,-0.398M previous
• US Gasoline Production -0.307M,-0.282M previous
• Crude Oil Inventories 0.975M, -1.021M forecast, -3.818M previous
•Brazil Foreign Exchange Flows -1.056B, 0.234B previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Foreign Bonds Buying 1,946.5B previous
•23:50 Japan Foreign Investments in Japanese Stocks 1,421.0B previous
•23:50 Australia NAB Quarterly Business Confidence -15 previous
Looking Ahead - Economic Data (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro rose on Wednesday as dollar dipped after Washington moved closer to agreeing a coronavirus stimulus package. The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.With just two weeks until the U.S. presidential election, Trump signaled a willingness to go along with more than $2.2 trillion in new COVID-19 relief, a figure Democrats have been pushing for months. The euro rose to a one-month high versus the dollar and was up 0.35% at $1.1862 at 1230 GMT. Immediate resistance can be seen at 1.1873 (23.6%fib), an upside break can trigger rise towards 1.1900 (Psychological level).On the downside, immediate support is seen at 1.1860 (38.2% fib), a break below could take the pair towards 1.1800 (50%fib).
GBP/USD: Sterling jumped to a one-week high against the U.S. dollar on Wednesday after the European Union’s Brexit negotiator Michel Barnier told EU lawmakers a trade deal with Britain was still possible. The pound rose 0.9% to $1.3090, its highest since Oct. 13, after Barnier said a deal was within reach if both sides work hard to overcome the sticking points in the coming days. Britain and the EU are now aiming to reach a trade agreement by the end of the month, having missed a self-imposed deadline of mid-October, and their negotiators will speak later on Wednesday. Immediate resistance can be seen at 1.3192 (23.6% fib), an upside break can trigger rise towards 1.3270(Sep 4th high).On the downside, immediate support is seen at 1.3095 (23.6%fib), a break below could take the pair towards 1.3015(50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices tumbled and stop-loss orders were triggered in the market, with the loonie pulling back from an earlier two-week high. The Canadian dollar was trading 0.1% lower at 1.3134 to the greenback. It was the only G10 currency to lose ground against the greenback as hopes rose for a large U.S. coronavirus relief package and the price of oil, one of Canada's major exports, fell. U.S. crude oil futures settled 4% lower at $40.03 a barrel after U.S. inventory figures showed demand weakening for refined products as global COVID-19 cases spiked.Immediate resistance can be seen at 1.3167 (5DMA), an upside break can trigger rise towards 1.3197 (38.2%fib).On the downside, immediate support is seen at 1.3077 (Daily low), a break below could take the pair towards 1.3007 (Lower BB).
USD/JPY: The dollar edged loweragainst the Japanese yen on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompted some traders sell greenback. The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus-related aid package on Tuesday as Trump said he was willing to accept a large aid bill despite opposition within his own Republican Party. The greenback slipped to a four-week low against the yen, with the Japanese currency set to log its best one-day gain since Aug. 28. Strong resistance can be seen at 104.74 (23.6%fib), an upside break can trigger rise towards 105.19 (38.2%fib).On the downside, immediate support is seen at 104.29 (Daily low), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European shares fell for a third straight session on Wednesday, as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.
UK's benchmark FTSE 100 closed ended down by 1.91 percent, Germany's Dax ended down by 1.49 percent, France’s CAC finished the day down by 1.53percent.
Wall Street’s main indexes dipped in choppy trading on Wednesday as investors waited for progress in ongoing negotiations related to the coronavirus stimulus package.
Dow Jones closed down by 0.34 percent, S&P 500 ended down by 0.22 percent, Nasdaq was down by 0.22 % percent.
Treasuries Recap
Benchmark U.S. Treasury yields rose to four-month highs on Wednesday on hopes that U.S. lawmakers will reach a deal to pass new fiscal stimulus in the near term.
Benchmark 10-year note yields rose two basis points on the day at 0.813% after earlier reaching 0.836%, the highest since June 9.
Commodities Recap
Gold rose 1% to its highest in over a week on Wednesday as investor optimism that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections pressured the dollar and bolstered bullion’s appeal as an inflation hedge.
Spot gold jumped 1.1% to $1,926.76 per ounce by 12:15 p.m. ET (1615 GMT), after touching its highest since Oct. 12. U.S. gold futures rose 0.8% to $1,931.10.