Posted at 22 October 2020 / Categories Market Roundups
Market Roundup
•German Nov GfK German Consumer Climate -3.1, -2.8 forecast,-1.6 previous
•French Oct Business Survey 93, 96 forecast, 96 previous
•UK Oct CBI Industrial Trends Orders -34, -45 forecast, -48 previous
Looking Ahead - Economic Data (GMT)
•12:30 US Jobless Claims 4-Week Avg 866.25K previous
•12:30 US Initial Jobless Claims 860K forecast, 898K previous
•12:30 US Continuing Jobless Claims 9,500K forecast, 10,018K previous
•13:00 Russia Central Bank reserves (USD) 585.3B previous
•14:00 EU Oct Consumer Confidence -15.0 forecast, -13.9 previous
•15:00 US Sep Existing Home Sales 6.30M forecast, 6.00M previous
•15:00 US Sep Existing Home Sales (MoM) 5.0% forecast, 2.4% previous
•15:00 US Sep Leading Index (MoM) 0.7% forecast, 1.2% previous
•14:30 US Natural Gas Storage 52B forecast, 46B previous
•15:00 US Oct KC Fed Composite Index 11 previous
•15:00 US Oct KC Fed Manufacturing Index 18 previous
Looking Ahead - Economic events and other releases (GMT)
•17:10 US FOMC Member Barkin Speaks
Fxbeat
EUR/USD: The euro declined on Thursday as dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day. The news dented risk sentiment and lifted the dollar against its rivals. Immediate resistance can be seen at 1.1838(38.2%fib), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1791(50% fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: The pound slipped slightly against the dollar on Thursday, but held close to the six-week highs it hit in the previous session following news that stalled Brexit negotiations were due to resume. Sterling rose by as much as 1.7% versus the dollar on Wednesday after the European Union’s chief negotiator Michel Barnier said that a deal was “within reach”.It held close to those highs on Thursday, with the Brexit trade talks due to resume in the afternoon after negotiations were halted abruptly last week. Immediate resistance can be seen at 1.3128 (Higher BB), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3090 (50%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CHF: The dollar edged higher against the Swiss franc on Thursday as hopes for a fiscal package in the United States before the November elections crumbled again and the global surge in COVID-19 cases fueled demand for safe-haven assets like the greenback. Progress towards a U.S. stimulus deal has boosted sentiment in world markets and lifted demand for riskier assets in recent sessions weighing this week on the dollar, which tends to weaken when risk appetite picks up. But pressure on the currency eased after U.S. President Donald Trump on Wednesday accused Democrats of being unwilling to craft an acceptable compromise. Immediate resistance can be seen at 0.9097 (38.2 % fib), an upside break can trigger rise towards 0.9126 (50%fib).On the downside, immediate support is seen at 0.9052 (23.6%fib), a break below could take the pair towards 0.9000(Psychological level).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday as U.S. stimulus talks remained the focus for markets with trading buffeted over recent days by the extent of progress made on the potential size of the aid package. Prospects remain dim for the Republican-controlled Senate to approve any aid before the Nov. 3 election. Nancy Pelosi said before starting talks with Treasury Secretary Steven Mnuchin that there was still a chance for a deal despite resistance from Senate Republicans, though she acknowledged it might not pass until after the election. Strong resistance can be seen at 105.71(38.6%fib), an upside break can trigger rise towards 105.01 (50%fib).On the downside, immediate support is seen at 104.30 (23.6%fib), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European stocks hit their lowest level in almost a month on Thursday, as a fall in German consumer morale, worries about soaring coronavirus cases and a U.S. stimulus impasse weighed on sentiment.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading up at 0.17percent, Germany's Dax was up by 0.15 percent, France’s CAC finished was up by 0.37 percent.
Commodities Recap
Gold prices slipped on Thursday as market hopes for a U.S. coronavirus aid package ahead of the presidential elections waned, in turn bolstering the dollar.
Spot gold fell 0.4% to $1,917.19 per ounce by 0953 GMT, after hitting more than a one-week high on Wednesday. U.S. gold futures slipped 0.5% to $1,919.90.
Oil prices dropped in early trade on Thursday, adding to heavy losses overnight, after a build in U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar in North America and Europe.
U.S. West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.7%, to $39.76 a barrel at 0127 GMT, after skidding 4% on Wednesday.