Posted at 28 October 2020 / Categories Market Roundups
Market Roundup
•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
• US Gasoline Inventories -0.961M, 1.895M previous
• US Cushing Crude Oil Inventories -0.422M, 0.975M previous
• US Crude Oil Inventories 4.320M, 1.230M, -1.001M previous
Looking Ahead - Economic data (GMT)
•23:50 Japan Sep Retail Sales (YoY) -7.7% forecast,-1.9% previous
•23:50 Japan Foreign Bonds Buying 419.8B previous
•23:50 Japan Foreign Investments in Japanese Stocks
•00:00 New Zealand Oct NBNZ Own Activity -5.4% previous
•00:00 New Zealand Oct ANZ Business Confidence -28.5 previous
•00:30 Australia Import Price Index (QoQ) (Q3) -1.9% previous
•00:30 Australia Export Price Index (QoQ) (Q3) -2.4% previous
•00:30 Australia NAB Quarterly Business Confidence -15 previous
•02:30 Japan BoJ Interest Rate Decision- 0.10% forecast, -0.10% previous
•04:00 Japan Household Oct Confidence 32.7previous
Looking Ahead - Economic events and other releases(GMT)
•05:00 Japan BoJ Press Conference
Currencies Summaries
EUR/USD: The euro dipped against dollar on Wednesday on prospects of a national lockdown in Germany and France as coronavirus cases surged. Germany and France were preparing to announce restrictions approaching the level of last spring's blanket lockdowns on Wednesday as COVID-19 deaths across Europe rose almost 40% in a week, while financial markets tumbled on fears of the likely economic costs.The European Commission proposed on Wednesday a series of new measures to fight the COVID-19 pandemic in the European Union, saying the new spike in infections on the continent was "alarming. The euro was down 0.39 percent at $1.1748.Immediate resistance can be seen at 1.1749 (50% fib), an upside break can trigger rise towards 1.1782 (50%fib).On the downside, immediate support is seen at 1.1743 (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/CAD: The Canadian dollar weakened to a three-week low against its U.S. counterpart on Wednesday, as investors worried that rising coronavirus cases would slow global economic recovery and the Bank of Canada underscored the more uncertain outlook. The Canadian dollar was trading 1% lower at 1.3311 to the greenback , its biggest decline since Sept. 8. It touched its weakest intraday level since Oct. 7 at 1.3333. U.S. crude prices were down 6.2% at $37.13 a barrel as a surge in U.S. crude stocks and rising coronavirus infections fanned fears of a supply glut and weaker fuel demand. Immediate resistance can be seen at 1.3341 (23.6%fib), an upside break can trigger rise towards 1.3373 (Higher BB).On the downside, immediate support is seen at 1.3274(38.2%fib), a break below could take the pair towards 1.3220 (50%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 0.9% against dollar to 104.32, 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
European stock futures dropped to a fresh five-month low on Wednesday after a report France was mulling a month-long national lockdown to combat a surge in coronavirus infections.
UK's benchmark FTSE 100 closed down by 2.55 percent, Germany's Dax ended down by 4.17 percent, France’s CAC finished the day down by 3.37 percent.
U.S. stocks tumbled on Wednesday, with the Dow closing at lows last seen in late July, as coronavirus cases soared globally and investors worried about the possibility of a contested U.S. presidential election next week.
Dow Jones closed down by 3.46 % percent, S&P 500 closed down by 3.45% percent, Nasdaq settled down by 3.72% percent.
Treasuries Recap
U.S. Treasury yields were roughly unchanged across maturities on Wednesday afternoon, as expectations of heavy issuance of new supply offset safe-haven demand amid a dramatic stock sell-off that brought major U.S. stock indexes to one-month lows.
The benchmark 10-year yield was last unchanged on the day at 0.778%. The two-year yield was last down 0.3 basis point to 0.149%, steepening the yield curve modestly.
Commodities Recap
Gold fell as much as 2% and silver nearly 6% on Wednesday as investors flocked to the dollar in the absence of signs of any imminent U.S. fiscal stimulus measures to ease the economic blow from the COVID-19 pandemic.
Spot gold hit its lowest since Sept. 28 at $1,869.21 per ounce before recovering to $1,881.41 by 12:01 p.m. EDT (1601 GMT). U.S. gold futures fell 1.5% to $1,882.70.
Oil prices fell more than 5% on Wednesday, sending Brent to a four-month low as surging coronavirus infections in the United States and Europe prompted renewed lockdowns and fed expectations for new declines in fuel demand.
Brent futures fell $2.08, or 5.1%, to settle at $39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.18, or 5.5%, to $37.39.