Posted at 03 November 2020 / Categories Market Roundups
Market Roundup
• Swiss Oct CPI (YoY) -0.6%,-0.6% forecast, -0.8% previous
• Swiss Oct CPI (MoM) 0.0%,0.0% forecast, 0.0% previous
• French Sep Government Budget Balance -161.6B, -165.7B previous
Looking Ahead Economic Data
• 13:00 Brazil Oct Markit Manufacturing PMI 64.9
•13:55 US Redbook (YoY) 1.2% previous
•13:55 US Redbook (MoM) 0.8% previous
•14:30 New Zealand GlobalDairyTrade Price Index 0.4% previous
•14:45 US Oct ISM-New York Index 807.3 previous
•14:45 US Oct ISM NY Business Conditions 56.1% previous
•15:00 US Sep Factory Orders (MoM )1.0% forecast, 0.7% previous
•15:00 US Durables Excluding Defense (MoM) 3.4% previous
•15:00 US Sep Factory orders ex transportation (MoM) 0.7% previous
•15:00 US IBD/TIPP Economic Optimism 55.2 previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 German Buba Mauderer Speaks
•13:00 US Presidential Election
Fxbeat
EUR/USD: The euro ticked higher on Tuesday as investors refrained from taking on new large positions while voters head to the polls in the U.S. election. The small rise in euro followed Monday’s drop as investors were cautious in the wake of new lockdown restrictions governments have imposed across Europe to fight the spread of COVID-19.Market participants expect a volatile day on Wednesday when the results of the United States presidential election become clear. Immediate resistance can be seen at 1.1717 (50%fib), an upside break can trigger rise towards 1.1742 (30DMA).On the downside, immediate support is seen at 1.1671 (38.2% fib), a break below could take the pair towards 1.1616 (23.6% fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as investor’s awaited U.S. presidential election. Traders are waiting to see in which direction to take sterling as the post-election fate of the greenback will most likely partly govern the British currency. Another element which could take the pound swinging either way is Britain’s imminent departure from the European Union. Sterling was last trading up 0.4% at $1.2964. It has risen by about 4% in the last six months as the dollar strength faded. Immediate resistance can be seen at 1.2997 (9DMA), an upside break can trigger rise towards 1.3049 (50%fib).On the downside, immediate support is seen at 1.2956 (38.2% fib), a break below could take the pair towards 1.2846 (23.6%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as market participants held their breath for the U.S.presidential election. The U.S. dollar hovered near a one-month high on Tuesday as investors opted for caution in the hours ahead of polls opening on election day in the United States. Opinion polls have consistently showed Democrat challenger Joe Biden leading President Donald Trump. Analysts said a Biden win could weaken the dollar as he intends to spend big on stimulus, while a steadier foreign policy could lift trade-exposed currencies. Immediate resistance can be seen at 0.9209 (100 DMA), an upside break can trigger rise towards 0.9230(23.6% fib).On the downside, immediate support is seen at 0.9148 (50% fib), a break below could take the pair towards 0.9126 (55DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as investors brace for U.S. elections. Election polls show Democrat candidate Joe Biden with an outright majority nationally but the race between both Biden and president Donald Trump remains closer in several battleground states. The Federal Open Market Committee (FOMC) will begin its two-day meeting on interest rate policy on Wednesday, with policymakers expected to reaffirm its commitment to support the pandemic-struck economy and keep interest rates unchanged. Strong resistance can be seen at 104.84 (50% fib), an upside break can trigger rise towards 105.16 (61.8% fib).On the downside, immediate support is seen at 104.52 (38.2%fib), a break below could take the pair towards 104.08 (23.6% fib).
Equities Recap
European shares extended their recovery rally on Tuesday with investors putting coronavirus worries on the back burner for now, as attention turned to the U.S. presidential election.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading up at 1.67percent, Germany's Dax was up by 1.77 percent, France’s CAC was last up by 2.00 percent.
Commodities Recap
Gold prices held steady on Tuesday, as a jump in riskier assets offset the impact of strict lockdowns across Europe and with wary markets awaiting results of the U.S. presidential election.
Spot gold was up 0.1% to $1,896.64 per ounce by 0915 GMT, while U.S. gold futures rose 0.3% at $1,897.50 per ounce.
Oil prices extended their rally on U.S. Election Day amid a recovery in financial markets on Tuesday, but concerns over surging coronavirus cases around the world capped further gains.
Brent crude futures rose 70 cents, or 1.8% to $39.67 a barrel at 0845 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 78 cents, or 2.1%, to $37.59 a barrel. Both benchmarks gained nearly 3% on Monday.