Posted at 23 October 2020 / Categories Market Roundups
Market Roundup
•UK Sep Retail Sales (MoM) 1.5%,0.4% forecast,0.8% previous
•UK Sep Core Retail Sales (YoY) 6.4%,5.0% forecast, 4.3% previous
•UK Sep Core Retail Sales (MoM) 1.6%,0.5% forecast, 0.6% previous
•UK Sep Retail Sales (YoY) 4.7% , 3.7% forecast, 2.8% previous
• French Oct Manufacturing PMI 51.0, 51.0 forecast, 51.2 previous
•French Oct Services PMI 46.5, 46.8 forecast, 47.5 previous
•French Oct Markit Composite PMI 47.3, 48.0 forecast, 48.5 previous
•German Oct Manufacturing PMI 58.0, 55.1 forecast, 56.4 previous
•German Oct Services PMI 48.9, 49.2 forecast, 50.6 previous
•German Oct German Composite PMI 54.5, 53.2 forecast, 54.7 previous
•EU Oct Services PMI 46.2, 47.0 forecast, 48.0 previous
•EU Oct Manufacturing PMI 54.4, 53.1 forecast, 53.7 previous
•EU Oct Markit Composite PMI 49.4, 49.3 forecast, 50.4 previous
•UK Oct Services PMI 52.3, 55.0 forecast, 56.1 previous
•UK Oct Composite PMI 52.9, 55.6 forecast, 55.7 previous
•UK Oct Manufacturing PMI 53.3, 54.3 forecast, 54.1 previous
•Russia Interest Rate Decision 4.25%,4.25% forecast, 4.25% previous
Looking Ahead - Economic Data (GMT)
•13:00 Belgium Oct NBB Business Climate -11.5 forecast, -10.8 previous
•13:30 Brazil Aug Federal Tax Revenue 118.50B forecast, 118.50B previous
•13:45 US Oct Services PMI 54.6 forecast, 54.6 previous
•13:45 US Oct Manufacturing PMI 53.4 forecast, 53.2 previous
•13:45 US Oct Markit Composite PMI 54.3 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currencies Recap
EUR/USD: The euro strengthened against dollar on Friday after Germany’s PMI survey showed that its manufacturing sector rebounded strongly. German private sector activity grew for the fourth month running in October. Manufacturing proved robust, with the flash PMI rising to 58.0, its highest level since April 2018. The service sector contracted, however, with the flash PMI dipping to 48.9. The euro was up 0.32 % against the dollar at $1.1847.Immediate resistance can be seen at 1.1866 (Higher BB), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1832 (38.2% fib), a break below could take the pair towards 1.1784(Daily low).
GBP/USD: Sterling edged up against dollar on Friday, as Britain and the European Union entered intense negotiations on a Brexit trade deal. The pound had its best day in seven months on Wednesday, surging 1.7% against the dollar, when Britain and the EU said they would start the new phase of negotiations. Prime Minister Boris Johnson’s spokesman had said a week earlier that talks were over - a move markets saw as brinkmanship. By Friday, the pound had eased some gains but was stabilising near the new highs. The market is more focused on the possibility of an EU-UK deal. 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 declined against the Swiss franc on Friday as investors waited for a breakthrough in stimulus talks in Washington and post-Brexit trade negotiations. U.S. President Donald Trump adopted a more restrained tone than in the first debate, though exchanges again focused on the handling of the COVID-19 pandemic and personal slights. Meanwhile, chief negotiators for Britain and the European Union were set to meet on Friday for negotiations on a last-minute trade deal that would stave off a tumultuous finale to the five-year Brexit crisis. Immediate resistance can be seen at 0.9051 (23.6%fib), an upside break can trigger rise towards 0.9098 (38.2% fib).On the downside, immediate support is seen at 0.9029 (Lower BB), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar remained within a tight range against the Japanese yen on Friday , less than two weeks before the U.S. presidential election, with traders looking for a breakthrough in stimulus talks in Washington. The final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday provided few surprises. At Thursday’s debate, Biden renewed his criticism of Trump’s handling of the coronavirus pandemic as Trump levelled unfounded corruption accusations at Biden and his family. Strong resistance can be seen at 104.71(38.6%fib), an upside break can trigger rise towards 105.06 (50%fib).On the downside, immediate support is seen at 104.53 (Daily low), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European stocks rose on Friday, boosted by positive earnings updates from Barclays and carmakers, but nagging worries about the economic impact of surging COVID-19 cases put markets on course for their biggest weekly decline in a month.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 1.56 percent, Germany's Dax was up by 1.19 percent, France’s CAC finished was up by 1.53 percent.
Commodities Recap
Gold prices gained on Friday, holding above the key $1,900 level, as investors pinned hopes on a U.S. coronavirus relief package eventually getting passed, although a firmer dollar limited gains.
Spot gold rose 0.2% to $1,907.96 per ounce by 0747 GMT and is up 0.5% for the week. U.S. gold futures gained 0.3% to $1,909.40 per ounce.
Oil rose further above $42 a barrel on Friday, heading for a weekly drop, as demand concerns raised by surging coronavirus cases in the United States and Europe were offset by the prospect of an extension to OPEC-led supply curbs.
Brent crude rose 20 cents, or 0.5%, to $42.66 a barrel by 1140 GMT, having gained 1.7% on Thursday. U.S. crude added 15 cents, or 0.4%, to $40.79. Both contracts are heading for a weekly loss.