News

Europe Roundup: Sterling falls as England heads to second national lockdown,European stocks rise, Gold gains, Oil falls as lockdowns widen, U.S. election uncertainties loom-November 2nd,2020

Posted at 02 November 2020 / Categories Market Roundups


Market Roundup

• Italian Oct Manufacturing PMI  53.8, 53.5 forecast, 53.2 previous

•French Oct Manufacturing PMI  51.3, 51.0 forecast, 51.0 previous

•German Oct  Manufacturing PMI  58.2, 58.0 forecast, 58.0 previous

•Greek Oct Manufacturing PMI  48.7, 50.0 previous

•EU Oct Manufacturing PMI  54.8, 54.4 forecast, 54.4 previous

•UK Oct Manufacturing PMI  53.7, 53.3 forecast, 53.3 previous

•French Oct Car Registration (YoY)  -9.5% forecast, -3.0% previous

• French Oct Car Registration (MoM)  1.6% forecast, 62.4% previous

Looking Ahead - Economic Data (GMT)

•14:00 French 12-Month BTF Auction-0.638% previous

•14:00 French 3-Month BTF Auction -0.673% previous

•14:00 French 6-Month BTF Auction-0.652% previous

•14:45 Canada Oct RBC Manufacturing PMI  56.0 previous

•15:00 US Oct Manufacturing PMI  53.3 previous

•15:00 US Oct ISM Manufacturing Prices  60.0     forecast, 62.8 previous

•15:00 US Oct ISM Manufacturing PMI  55.8 forecast, 55.4 previous

•15:00 US Oct ISM Manufacturing New Orders Index      60.2 previous

•15:00 US Sep Construction Spending (MoM)   1.0%,1.4% previous

•16:30 US 3-Month Bill Auction 0.100% previous

•16:30 US 6-Month Bill Auction 0.110% previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events 

Fx Beat 

EUR/USD: The euro was little changed against dollar on Monday as new lockdown measures in Europe kept investors cautious. As COVID-19 cases surge across Europe, nationwide lockdowns have been announced in Britain, France and Germany, while Austria, Portugal, Spain and Italy are tightening restrictions. Market focus now shift the U.S. elections on Tuesday. The euro last fetched $1.1648, neutral on the day, having fallen earlier in the session. Immediate resistance can be seen at 1.1666 (300 DMA), an upside break can trigger rise towards 1.1704 (Oct 30th high).On the downside, immediate support is seen at 1.1621 (Daily low), a break below could take the pair towards 1.1620 (Lower BB).

GBP/USD: Sterling fell to an almost four-week low against the dollar on Monday after England announced a new national lockdown, but  hopes for a Brexit deal prevented a bigger drop for the currency. Prime Minister Boris Johnson announced over the weekend that a one-month lockdown across England would start on Thursday with Britain registering more than 20,000 new coronavirus cases a day and scientists warning the “worst case” scenario of 80,000 dead could be exceeded this winter. Sterling was 0.5% lower at $1.2926 by 1230 GMT, after earlier touching its lowest level since Oct. 07 at $1.2854. versus the euro, the pound was down 0.6% at 90.40 pence .Immediate resistance can be seen at 1.2963 (38.2%fib), an upside break can trigger rise towards 1.3009 (Higher BB).On the downside, immediate support is seen at 1.2854 (23.6%fib), a break below could take the pair towards 1.2802 (Lower BB).

USD/CHF: The dollar edged higher against the Swiss franc on Monday as investors prepared for the presidential election, while a surge in global coronavirus cases continued to weigh on sentiment. The greenback held onto gains after posting its largest weekly percentage rise since late September in the previous trading session. Democratic challenger Joe Biden leads in national opinion polls though the race is seen as close in enough battleground states that President Donald Trump could achieve the 270 votes needed to win in the state-by-state Electoral College that determines the overall victor. At (GMT 11:51), greenback gained 0.11% versus the Swiss franc to 0.9175. Immediate resistance can be seen at 0.9187 (38.2%fib), an upside break can trigger rise towards 0.9219 (Higher BB).On the downside, immediate support is seen at 0.9149 (50%fib ), a break below could take the pair towards 0.9134 (5DMA).

USD/JPY: The dollar was little changed against the Japanese yen on Monday as upcoming  U.S. election kept  markets in tight ranges. The focus was increasingly shifting towards the U.S. election on Tuesday, although investors prepared for the chance that it could take a few days before the result becomes clear. Democrat Joe Biden holds a commanding national lead over President Donald Trump, but Trump has stayed competitive in the swing states that could decide the White House race. Strong resistance can be seen at 104.82 (50%fib), an upside break can trigger rise towards 105.16 (61.8%fib).On the downside, immediate support is seen at 104.49 (38.2%fib), a break below could take the pair towards 104.06  (23.6%fib).

Equities Recap

European stock markets started November on a positive note as accelerating factory activity in the euro zone and China outweighed concerns over a resurgence in COVID-19 cases that drove major economies back into a lockdown.

At (GMT 12:40),UK's benchmark FTSE 100 was last trading up at 1.04 percent, Germany's Dax was up by 1.63 percent, France’s CAC was last up  by 1.76 percent.

Commodities Recap

Gold prices rose on Monday as investors remained wary of the results of upcoming U.S. presidential elections and as a surge in COVID-19 cases and renewed lockdowns in some nations raised economic concerns.    

Spot gold rose 0.5% to $1,886.66 per ounce by 1018 GMT, while U.S. gold futures  were up 0.4% to $1,887.60.

Oil prices fell on Monday on worries that widening coronavirus lockdowns in Europe would weaken fuel demand and amid concerns about turbulence around this week’s U.S. presidential election.

Brent was down 97 cents, or 2.6%, to $36.97 a barrel by 0948 GMT, and U.S. West Texas Intermediate fell $1.04, or 2.9%, to $34.75. Both contracts fell more than $2 earlier in the session.


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