Posted at 27 October 2020 / Categories Market Roundups
Market Roundup
• US Sep Goods Orders Non Defense Ex Air (MoM) 1.0%,0.5% forecast, 1.9% previous
• US Sep Durables Excluding Defense (MoM) 3.4% , 0.9% previous
• US Sep Durable Goods Orders (MoM) 1.9%,0.5% forecast, 0.5% previous
• US Redbook (YoY) 1.2%, 2.5% previous
• US Redbook (MoM) 0.8%, 1.0% previous
• US Aug S&P/CS HPI Composite - 20 s.a. (MoM) 0.5%, 0.5% forecast, 0.6% previous
• US Aug S&P/CS HPI Composite - 20 n.s.a. (YoY) 5.2% ,4.2% forecast, 3.9% previous
• US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.1%, 0.5% forecast, 0.6% previous
• US Aug House Price Index 297.7, 293.0 previous
• US Aug House Price Index (YoY) 8.0% ,6.5% previous
• US Oct Richmond Manufacturing Index 29, 21 previous
• US Oct CB Consumer Confidence 100.9, 102.0, 101.8 previous
• US Texas Services Sector Outlook 13.2 ,11.5 previous
• US Oct Dallas Fed Services Revenues 7.1, 14.0 previous
Looking Ahead - Economic data (GMT)
•00:30 Australia Weighted mean CPI (QoQ) (Q3) 0.3% forecast,0.1% previous
•00:30 Australia CPI (YoY) (Q3) 0.7% forecast,-0.3% previous
•00:30 Australia CPI Index Number (Q3) 114.40 previous
•00:30 Australia CPI (QoQ) (Q3) 1.5% forecast, -1.9% previous
•00:30 Australia Trimmed Mean CPI (YoY) (Q3) 1.1% forecast,1.2% previous
•00:30 Australia Trimmed Mean CPI (QoQ) (Q3) 0.3% forecast,-0.1% previous
•00:30 Australia Weighted mean CPI (YoY) (Q3) 1.3% forecast, 1.3% previous
Looking Ahead - Economic events and other releases(GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro declined against dollar on Tuesday as the continued rise in coronavirus cases and the lack of progress on U.S. stimulus kept investors cautious before Thursday’s European Central Bank meeting. At the ECB meeting, the bank is not expected to change its policy, but investors will watch for hints on how likely it is to add to its bond purchases in December. The euro was down 0.13% to $1.1779. Immediate resistance can be seen at 1.1800 (Psychological level), an upside break can trigger rise towards 1.1823 (38.2).On the downside, immediate support is seen at 1.1779 (50%fib), a break below could take the pair towards 1.1735 (61.8%fib).
GBP/USD: Sterling edged higher against the dollar on Tuesday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks. On Monday, the EU’s chief negotiator, Michel Barnier, said he would be in London until Wednesday to negotiate a deal, after which talks will switch to Brussels. Apart from Brexit, Britain is grappling with a weak economy battered by the coronavirus. Negative interest rates have not been ruled out, another hurdle the currency can ill afford. Immediate resistance can be seen at 1.3091 (38.2%fib), an upside break can trigger rise towards 1.3195 (23.6%fib).On the downside, immediate support is seen at 1.3002 (50%fib), a break below could take the pair towards 1.2912 (61.8%fib).
USD/CAD : The Canadian dollar strengthened against its U.S. counterpart on Tuesday as stocks and oil prices rose, with the currency rebounding from a 10-day low the day before when a wave of risk aversion swept global markets. The Bank of Canada is due to make an interest rate decision and update its economic outlook on Wednesday. The central bank has said it will leave rates at a record low of 0.25% until its 2% inflation target is achieved sustainably, which it does not expect for at least two years. The Canadian dollar was trading 0.2% higher at 1.3176 to the greenback, having traded in a range of 1.3156 to 1.3212.Immediate resistance can be seen at 1.3190 (5 DMA), an upside break can trigger rise towards 1.3261(Daily high).On the downside, immediate support is seen at 1.3161(Psychological level), a break below could take the pair towards 1.3100(21 DMA).
USD/JPY: The dollar declined against the Japanese yen on Tuesday, as investors sat on the sidelines ahead of next week’s U.S. election. Monday saw the steepest stock market sell-off in a month and a bond rally, but foreign exchange market activity has remained relatively muted, with price moves in early Tuesday limited. Investors were clearly cautious after the United States, Russia and France all hit new daily records for coronavirus infections. The yen, which investors tend to flock towards when nervous gained ground against dollar. Strong resistance can be seen at 104.73 (38.2% fib), an upside break can trigger rise towards 105.05 (50%fib).On the downside, immediate support is seen at 104.32 (23.6%fib below could take the pair towards 104.00 (Psycological level).
Equities Recap
European stocks extended losses on Tuesday as worries about the economic fallout of tighter coronavirus restrictions on the continent overshadowed some better-than-expected earnings reports.
UK's benchmark FTSE 100 closed down by 1.09 percent, Germany's Dax ended down by 0.93 percent, France’s CAC finished the day down by1.77 percent.
The S&P 500 and Dow fell on Tuesday, dragged down by a string of earnings disappointments and doubts about a coronavirus stimulus package before Election Day, although Nasdaq rose ahead of results from mega-cap technology companies.
Dow Jones closed down by 0.80% percent, S&P 500 closed down by 0.30% percent, Nasdaq settled up by 0.64% percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday and the yield curve was flatter as hopes faded for an imminent stimulus deal in Washington, while coronavirus infections surged.
The benchmark 10-year yield was down 2.7 basis points in afternoon trading at 0.776%.
Commodities Recap
Gold prices rose on Tuesday, helped by a weaker dollar and worries over a second surge in coronavirus cases, while investors held back from making large bets ahead of next week’s U.S. presidential election.
Spot gold was up 0.4% at $1,908.84 per ounce at 11:45 a.m. EST (1545 GMT). U.S. gold futures rose 0.3% to $1,911.40.
Crude settled higher on Tuesday as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.
Brent crude closed up 75 cents, or 1.9%, at $41.21 per barrel by 1:22 EDT (1722 GMT). U.S. oil gained $1.01 cents, or 2.6%, to $39.57. Both contracts fell more than 3% on Monday.