Posted at 26 October 2020 / Categories Market Roundups
Market Roundup
•German Oct Business Expectations 95.0, 96.5 forecast, 97.7 previous
•German Oct Current Assessment 90.3, 89.8 forecast, 89.2 previous
•German Oct Ifo Business Climate Index 92.7, 93.0 forecast, 93.4 previous
Looking Ahead - Economic events and other releases (GMT)
•13:00 French 3-Month BTF Auction -0.685% previous
•13:00 French 6-Month BTF Auction -0.678% previous
•13:00 French 12-Month BTF Auction -0.646% previous
•14:00 US Sep New Home Sales (MoM) 2.8% forecast, 4.8% previous
•14:00 US Sep New Home Sales 1,025K forecast, 1,011K previous
•14:30 US Oct Dallas Fed Mfg Business Index 13.6 previous
•15:30 US 3-Month Bill Auction 0.100% previous
•15:30 US 6-Month Bill Auction 0.115% previous
•15:30 US 5-Year Note Auction 0.275% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Monday after a survey showed German business morale fell in October. German business morale fell for the first time in six months in October, weighed down by companies’ concerns about rising coronavirus infection rates that are making them more cautious about the coming months. The Ifo institute said its business climate index fell to 92.7 from a downwardly revised 93.2 in September. An index tracking the U.S. dollar against a basket of currencies was last up 0.2% at 92.95. Euro the most traded currency pair and part of the index fell 0.3% at 1.1831.Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling stabilised against the dollar on Monday as markets turned cautious over new lockdown restrictions in Europe and record-high daily virus cases in the United States. U.S. COVID-19 cases hit record highs over the weekend, with hospitalisations at a two-month high. In Europe, Spain announced a new state of emergency and Italy imposed new lockdown measures to curb a second wave of infections. At 12:30 GMT, the pound was up against the dollar at $1.3051. Immediate resistance can be seen at 1.3072 (Daily high),an upside break can trigger rise towards 1.3092 (23.6%fib)On the downside, immediate support is seen at 1.3016 (50%fib), a break below could take the pair towards 1.2995 (9 DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders cautious. U.S. House Speaker Nancy Pelosi said on Sunday that she expected a White House response on Monday to the latest stimulus plan, but there is little evidence a deal is close.The United States has recorded its highest number of new COVID-19 cases for two consecutive days. So has France. Spain announced a new state of emergency and Italy has ordered restaurants and bars to shut by 6 p.m. Immediate resistance can be seen at 0.9080 (Daily high), an upside break can trigger rise towards 0.9091 (38.2%fib).On the downside, immediate support is seen at 0.9046 (23.6%fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar rose against the Japanese yen Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders switch to greenback. U.S. reported 79,852 new infections on Saturday, close to the previous day's record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards. France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe. Strong resistance can be seen at 105.00 (50%fib), an upside break can trigger rise towards 105.15 (9 DMA).On the downside, immediate support is seen at 104.74 (38.2% fib), a break below could take the pair towards 106.30 (23.6% fib).
Equities Recap
European stocks fell on Monday as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped after it cut its 2020 outlook.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.37 percent, Germany's Dax was down by 2.88 percent, France’s CAC finished was down by 1.18 percent.
Commodities Recap
Gold prices eased to an over one-week low on Monday as the dollar firmed and talks over the new U.S. coronavirus aid package showed no signs of progress.
Spot gold fell 0.2% to $1,897.71 per ounce by 0908 GMT, after hitting $1,890.19, its lowest since Oct. 15.U.S. gold futures fell 0.3% to $1,900.50.
Spot gold fell 0.1% to $1,899.41 per ounce by 0053 GMT, after hitting $1,890.19, its lowest since Oct. 15. U.S. gold futures were down 0.2% at $1,900.
Oil prices fell on Monday, extending last week’s losses, as increasing coronavirus cases in the United States and Europe raised worries about energy demand, while Libya’s fast growing production also weighed on prices.
Brent was down 80 cents, or 1.9%, at $40.97 by 1121 GMT. U.S. West Texas Intermediate (WTI) dropped 82 cents, or 2.1%, to $39.03. Both contracts fell almost 2.5% last week.