Posted at 09 November 2020 / Categories Market Roundups
Market Roundup
• French 6-Month BTF Auction -0.628%,-0.653% previous
• French 3-Month BTF Auction-0.635%, -0.676% previous
• French 12-Month BTF Auction -0.627%,-0.648% previous
• US Oct CB Employment Trends Index 97.57,54.80 previous
• US 3-Month Bill Auction0.100%, 0.095% previous
• US 6-Month Bill Auction0.110%, 0.110% previous
• US 3-Year Note Auction0.250%,0.193% previous
Looking Ahead – Economic Data (GMT)
• 23:50 Japan Adjusted Current Account 1.79T, 1.65T previous
• 23:50 Japan Current Account n.s.a. 1.995T forecast, 2.103T previous
• 23:50 Japan Oct Bank Lending (YoY) 5.6% forecast, 6.4% previous
• 00:30 Australia Oct NAB Business Confidence -4 previous
• 00:30 Australia NAB Business Survey 0 previous
• 01:30 China Oct PPI (YoY) -2.0% forecast, -2.1% previous
• 01:30 China Oct CPI (YoY ) 0.8% forecast, 1.7% previous
• 01:30 China Oct CPI (MoM) 0.2% forecast, 0.2% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro rose higher against dollar on Monday as upbeat German exports data boosted euro. German exports rose by more than expected in September and foreign trade gave Europe’s largest economy a boost going into the fourth quarter as it struggles to avoid slipping into a double dip contraction. Seasonally adjusted exports rose 2.3% on the month after an upwardly revised 2.9% rise in August, the Federal Statistics Office said. Imports fell by 0.1% after a rise of 5.8% the previous month. The trade surplus expanded to 17.8 billion euros. Immediate resistance can be seen at 1.1873 (38.2%fib), an upside break can trigger rise towards 1.1934 (Higher BB).On the downside, immediate support is seen at 1.1789 (50%fib), a break below could take the pair towards 1.1763(21DMA)
GBP/USD: Sterling strengthened on Monday as global risk appetite rose on news of progress in Pfizer’s COVID-19 vaccine trials, as well as Democrat Joe Biden’s U.S. election win, but ongoing Brexit negotiations still weighed on the UK currency. Global equities have risen as investors turned optimistic that a Biden presidency would result in a bigger fiscal stimulus package for the United States and calmer global trade.Market sentiment got a further boost on Monday when Pfizer Inc said that its experimental COVID-19 vaccine was more than 90% effective. The pound was at $1.3134, down around 0.1% on the day versus a strong dollar . Versus the euro it was up around 0.4%, at 89.98 pence. Immediate resistance can be seen at 1.3226 (Higher BB), an upside break can trigger rise towards 1.3285 (23.6%fib).On the downside, immediate support is seen at 1.3159 (38.2% fib), a break below could take the pair towards 1.3107(5 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday to a more than 2-year high, as investors’ appetite for riskier currencies surged following news of a promising coronavirus vaccine development. Pfizer Inc on Monday said its experimental vaccine was more than 90% effective in preventing COVID-19 based on initial data from a large study, a major victory in the fight against a pandemic that has killed over 1 million people, roiled the world's economy and upended daily life. The Canadian dollar was trading 0.9% higher at 1.2934 to the greenback, The currency's strongest level of the session was 1.2928, its strongest since October 2018.Immediate resistance can be seen at 1.3024 (23.6%fib), an upside break can trigger rise towards 1.3094 (38.2%fib).On the downside, immediate support is seen at 1.2934(Lower BB), a break below could take the pair towards 1.2900 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as traders unloaded Japanese yen and bought riskier currencies as market confidence in the economy and world trade increased with progress on a COVID-19 vaccine and the prospect of Joe Biden being U.S. president. The yen , which had become a favored safe-haven, suffered its biggest loss against the U.S. dollar since March, with the greenback rising as much as 2.2%.The moves came after Biden announced his first steps as president and Pfizer Inc's and its German partner BioNTech SE announced that their experimental COVID-19 vaccine was more than 90% effective in initial trial results in what experts said could be a turning point toward halting the pandemic. Strong resistance can be seen at 104.60 (38.2% fib), an upside break can trigger rise towards 104.77 (21DMA).On the downside, immediate support is seen at 103.16(23.6%fib), a break below could take the pair towards 103.16(23.6%fib).
Equities Recap
European shares jumped to an eight-month high on Monday after drugmakers Pfizer and BioNTech flagged strong progress in their COVID-19 vaccine, while Joe Biden’s election victory raised hopes of a more stable U.S. trade policy.
UK's benchmark FTSE 100 closed up by 4.67 percent, Germany's Dax ended up by 4.94 percent, France’s CAC finished the day up by 7.67 percent.
The S&P 500 and Dow were set to open at record highs on Monday, as news of the first successful late stage COVID-19 vaccine trials stirred hopes of the economy emerging from a year of pandemic-driven crisis.
Dow Jones closed up by 2.95 percent, S&P 500 ended up by 1.17 percent, Nasdaq settled down by 1.53 % percent.
Treasuries Recap
U.S. Treasury yields jumped on Monday as news of a successful vaccine from Pfizer Inc currently in its late stage fueled optimism that the world's largest economy would emerge from a pandemic-induced recession.
The benchmark 10-year yield rose to its highest since March and was on track for its biggest one-day jump since March.
Commodities Recap
Gold slumped more than 5% on Monday as news of the first successful late-stage COVID-19 vaccine trials prompted investors to dump safe-haven bullion and flock to riskier assets
Spot gold was down 5.1% at $1,852.82 per ounce by 11:07 a.m. EDT (1607 GMT), while U.S. gold futures slid 4.9% to $1,855.30.
Oil surged about 8% on Monday, its biggest daily gain in more five months, after Pfizer announced promising results for its COVID-19 vaccine.
Brent crude settled at $42.40 a barrel, up $2.95, or 7.48%, while U.S. West Texas Intermediate crude settled at $40.29 a barrel, rising $3.15, or 8.48%.