Posted at 16 November 2020 / Categories Market Roundups
Market Roundup
•Oct Italian HICP (MoM) 0.6%,0.6% forecast, 0.6% previous
•Oct Italian CPI (YoY) -0.3%,-0.3% forecast, -0.3% previous
•Oct Italian CPI (MoM) 0.2%,0.2% forecast, 0.2% previous
•Oct Italian HICP (YoY) -0.6% -0.6%, forecast, -0.6% previous
Looking Ahead - Economic Indicator (GMT)
•13:30 US Nov NY Empire State Manufacturing Index 13.50forecast, 10.50 previous
•13:30 Canada Sep Manufacturing Sales (MoM) 1.5%, forecast -2.0%,-2.0% previous
•14:00 French 6-Month BTF Auction -0.628% previous
•14:00French 3-Month BTF Auction -0.635% previous
•14:00French 12-Month BTF Auction -0.627% previous
•16:30 US 6-Month Bill Auction 0.110% previous
•16:30US 3-Month Bill Auction 0.100% previous
Looking Ahead - Economic events and other releases (GMT)
•17:30 UK MPC Member Tenreyro Speaks
•18:45 US FOMC Member Daly Speaks
•19:00 US FOMC Member Clarida Speaks
Fxbeat
EUR/USD: The euro strengthened on Monday as investors began the week in a relatively upbeat mood after strong economic data from Asia and on hopes for a successful vaccine against COVID-19. The euro inched higher on Monday, Despite fears of a resurgence of global cases of COVID-19, investors remain hopeful a working vaccine could rescue the global economy, helping to fuel a rally in stock markets and a rebound in riskier currencies. The euro rose 0.3% to a one-week high of $1.1869 and was last up 0.1% at $1.1843. The dollar, measured against a basket of currencies, was little changed at 92.657. Immediate resistance can be seen at 1.1872 (23.6% fib), an upside break can trigger rise towards 1.1914 (Higher BB).On the downside, immediate support is seen at 1.1818 (50% fib), a break below could take the pair towards 1.1777 (50%fib).
GBP/USD: Sterling slipped against dollar on Monday as Brexit talks resumed in Brussels, while bearish bets on the pound increased for the second week running. After initially opening higher, the pound fell as investors focused on Brexit negotiations, which have failed to make progress on two key issues, competition rules and fishing.Britain left the EU in January and both sides are trying to reach a deal that would govern nearly 1 trillion dollars in annual trade before the status-quo transition period ends on Dec. 31. Immediate resistance can be seen at 1.3238 (23.6% fib), an upside break can trigger rise towards 1.3328 (23.6% fib).On the downside, immediate support is seen at 1.3158 (50%fib), a break below could take the pair towards 1.3080 (61.8%fib).
USD/CHF: The dollar gained against the Swiss franc on Monday as hopes of a COVID-19 vaccine bolstered investor sentiment. The announcement, a week ago, that Pfizer had developed a very effective vaccine has investors hoping for similar good news soon from rival Moderna and looking past a tough winter to a better spring and summer ahead.Besides the virus, Brexit trade talks were chief among European investors’ concerns on Monday, with hopes for a breakthrough ebbing slightly. A slew of U.S. Federal Reserve speakers are also up this week, beginning with Vice Chair Richard Clarida at 1900 GMT. Immediate resistance can be seen at 0.9143(38.2%fib), an upside break can trigger rise towards 0.9181 (23.6%fib).On the downside, immediate support is seen at 0.9111 (50 %fib), a break below could take the pair towards 0.9080 (61.8%fib).
USD/JPY: The dollar gained against the Japanese yen Monday as demand for riskier assets increased on hopes for a COVID-19 vaccine and optimism arising from the prospects for a Biden presidency in the United States. Investors were also buoyed by factory output in China rising faster-than-expected in October. China’s factory output rose faster than expected in October and retail sales surged, as a recovery in the world’s second-largest economy from its COVID-19 slump gathered momentum. Strong resistance can be seen at 105.04 (50 %fib), an upside break can trigger rise towards 105.47 (61.8%fib).On the downside, immediate support is seen at 104.56 (38.2%fib), a break below could take the pair towards 104.06 (23.6%fib).
Equities Recap
European shares rose on Monday, hovering near nine-month highs, as strong China data and hopes of a COVID-19 vaccine renewed bets for a swifter economic recovery, while Spanish lender BBVA surged on a deal to sell its U.S. business.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading down at 2.14 percent, Germany's Dax was up by 1.22 percent, France’s CAC finished was up by 2.33 percent.
Commodities Recap
Gold retreated more than 1% on Monday after drugmaker Moderna declared an effective COVID-19 vaccine in tests, bolstering hopes for a swifter economic recovery and accelerating a shift into riskier assets.
Spot gold was down 0.7% to $1,875.71 per ounce at 1251 GMT, having earlier hit its highest since Nov. 9 at $1,898.81. U.S. gold futures slipped 0.7% at $1,873.80.
Oil prices climbed on Monday, recouping some losses from the previous session after U.S. company Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.
Brent crude futures for January were up $1.48, or 3.5%, to $44.26 a barrel by 1215 GMT, while U.S. West Texas Intermediate crude for December was at $41.63, up $1.5 or 3.7%.