Posted at 28 October 2020 / Categories Market Roundups
Market Roundup
•German Sep Import Price Index (MoM) 0.3%,-0.3% forecast, 0.1% previous
•German Sep Import Price Index (YoY) -4.3% , -4.8% forecast, -4.0%previous
•French Oct Consumer Confidence 94, 93 forecast, 95 previous
•Sweden Oct Consumer Confidence 90.0, 88.3 previous
•Spanish Sep Retail Sales (YoY) -3.3% , -2.4% previous
•Italian Sep Trade Balance Non-EU 5.32B, 3.27B previous
•Swiss Oct ZEW Expectations 2.3, 26.2 previous
•Italian Sep PPI (MoM) 0.1%,0.1% previous
•Italian PPI (YoY) -3.1%,-3.0% previous
•US Mortgage Market Index 807.8, 794.2 previous
•US Mortgage Refinance Index 3,711.6, 3,620.5 previous
•US MBA Purchase Index 305.2, 304.6 previous
•US Sep Retail Inventories Ex Auto 0.9%, 0.5% previous
•US Sep Goods Trade Balance -79.37B,-83.11B previous
•US Wholesale Inventories (MoM) -0.1% ,0.5% previous
Looking Ahead - Economic data (GMT)
•14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous
•14:30 US Gasoline Inventories -0.961M, 1.895M previous
•14:30 US Cushing Crude Oil Inventories 0.975M previous
•14:30 US Crude Oil Inventories 1.230M, -1.001M previous
Looking Ahead - Economic events and other releases(GMT)
•15:15 Canada BOC Press Conference
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as coronavirus infections grew rapidly in Europe and the United States, igniting fears of possible strict lockdown measures. The United States, Russia, France and others have seen record numbers of infections in recent days, with European governments introducing new curbs that investors fear could maul the already fragile recoveries. The euro was down 0.18 percent at $1.0815. Immediate resistance can be seen at 1.1749 (50% fib), an upside break can trigger rise towards 1.1782 (61.8%fib).On the downside, immediate support is seen at 1.1716 (38.2%fib), a break below could take the pair towards 1.1673 (23.6% fib).
GBP/USD: Sterling fell against a strengthening dollar on Wednesday as markets turned risk-averse in light of a resurgence of COVID-19 infections in Europe, which is prompting new lockdown measures and challenging the narrative of a global economic recovery. Sterling has been driven by Brexit developments in the past few weeks, as Britain and the European Union have just over two months to reach a trade agreement for when the status-quo transition period ends on Dec. 31.The EU’s chief negotiator, Michel Barnier, is in London for negotiations, after which the talks will continue in Brussels. Immediate resistance can be seen at 1.2984 (38.2%fib), an upside break can trigger rise towards 1.3064 (23.6%fib).On the downside, immediate support is seen at 1.2924 (50%fib), a break below could take the pair towards 1.2866 (61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as uncertainty going into next week’s U.S. presidential election and concerns over a spike in coronavirus cases in Europe supported dollar. uncertainty going into next week’s U.S. presidential election and concerns over a spike in coronavirus cases in Europe. Focus was on the U.S. elections, with Democratic challenger Joe Biden leading Trump in nationwide polls. At (GMT 12:16), Greenback gained 0.20% versus the Swiss franc to 0.9720. Immediate resistance can be seen at 0.9145 (50%fib), an upside break can trigger rise towards 0.9179 (61.8%fib).On the downside, immediate support is seen at 0.9110 (38.2%fib), a break below could take the pair towards 0.9069(23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Wednesday uncertainty over the impending U.S. presidential election increased demand for yen. Ahead of the Nov. 3 U.S. presidential election, former Vice President Joe Biden leads President Donald Trump in national opinion polls. But the race is close in key battleground states that could decide the outcome. The yen rose 0.2% against dollar to 104.16, its highest in more than a month. Strong resistance can be seen at 104.55 (38.2 %fib), an upside break can trigger rise towards 105.00 (Psychological level).On the downside, immediate support is seen at 104.09(Daily low), a break below could take the pair towards 103.34 (23.6%fib).
Equities Recap
Losses accelerated across European stock markets on Wednesday, with the benchmark STOXX 600 tumbling to its lowest level since late-May on fears of a new national lockdown in France and tighter curbs elsewhere to combat a surge in coronavirus cases.
At (GMT 13:10),UK's benchmark FTSE 100 was last trading down at 2.22 percent, Germany's Dax was down by 4.13 percent, France’s CAC finished was down by 3.62percent.
Commodities Recap
Gold prices eased on Wednesday due an uptick in the dollar, but uncertainty going into next week’s U.S. presidential election and concerns over a spike in coronavirus cases in Europe and the U.S. limited bullion’s losses.
Spot gold was down 0.3% at $1,900.52 per ounce by 0931 GMT. U.S. gold futures fell 0.5% to $1,902.30 per ounce.
Oil prices went into reverse on Wednesday, giving up the previous day’s gains as a surge in U.S. crude stocks and rising coronavirus infections in the United States and Europe fanned fears of a supply glut and weaker fuel demand.
Brent crude futures were down $1.60, or 3.8%, at $39.60 a barrel by 1115 GMT, having climbed nearly 2% on Tuesday. U.S. crude was down $1.84, or 4.6%, at $37.73 after a 2.6% jump the previous day.