Posted at 17 November 2020 / Categories Market Roundups
Market Roundup
• Virus surge prompts restrictions in Europe, U.S.
• U.S. retail sales miss expectations in October
• Canada Oct Housing Starts 214.9K, 222.0K forecast, 209.0K previous
• US Oct Export Price Index (MoM) 0.2%, 0.3% forecast,0.6% previous
• US Oct Import Price Index (MoM) -0.1%, 0.2% forecast, 0.3% previous
• Canada Sep Wholesale Sales (MoM) 0.9%, 0.4% forecast, 0.3% previous
• Canada Foreign Securities Purchases by Canadians 11.17B, 5.74B previous
• Canada Foreign Securities Purchases 4.46B, 15.50B previous
•US Retail Sales Ex Gas/Autos (MoM) 0.2%, 1.5% previous
•US Oct Retail Sales (MoM) 0.3%, 0.5% forecast, 1.9% previous
•US Export Price Index (YoY) -1.6%, -1.8% previous
•US Import Price Index (YoY) -1.0%,-1.1% previous
•US Oct Core Retail Sales (MoM) 0.2%,0.6% forecast, 1.5% previous
•US Oct Retail Control (MoM) 0.1%, 0.5% forecast, 1.4% previous
•US Retail Sales (YoY) 5.68%, 5.36% previous
•US Redbook (YoY) 1.7%, 1.1% previous
•US Redbook (MoM) -1.0%,-1.2% previous
•US Oct Manufacturing Production (MoM) 1.0%, 1.0% forecast, -0.3% previous
•US Oct Industrial Production (MoM) 1.1%, 1.0% forecast, -0.6% previous
•US Oct Industrial Production (YoY) -5.34%, -7.28% previous
•US Oct Capacity Utilization Rate 72.8%, 72.3% forecast, 71.5% previous
•New Zealand GlobalDairyTrade Price Index 1.8%,-3.5% forecast, 2.0% previous
•US Sep Business Inventories (MoM) 0.7%, 0.6% forecast, 0.3% previous
•US Nov NAHB Housing Market Index 90, 85 forecast, 85 previous
•US Sep Retail Inventories Ex Auto 1.1%, 0.9% previous
•Russia Oct Industrial Production (YoY) -5.9%, -6.1% forecast,-5.0% previous
•US Sep Overall Net Capital Flow -79.90B,86.30B previous
Looking Ahead - Economic Indicator (GMT)
•23:30 Australia MI Leading Index (MoM) 0.2% previous
•23:50 Japan Adjusted Trade Balance 0.11T, 0.48T previous
•23:30 Japan Oct Exports (YoY ) -4.5% forecast, -4.9% previous
•23:30 Japan Oct Imports (YoY) -9.0% forecast, -17.4% previous
•23:30 Japan Oct Trade Balance 250.0B forecast, 687.8B previous
•00:30 Australia HIA New Home Sales (MoM) 3.8% previous
•00:30 Australia Wage Price Index (YoY) (Q3) 1.5% forecast,1.8% previous
•00:30 Australia Wage Price Index (QoQ) (Q3) 0.2% forecast, 0.2% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currencies Summary
EUR/USD: The euro climbed against the dollar on Tuesday as euro was boosted by optimism over another coronavirus vaccine. Drugmaker Moderna became the second U.S. pharmaceutical company in a week to report positive results from trials of a COVID-19 vaccine, considered necessary to eradicate the pandemic. The euro last traded 0.2% higher to the dollar at $1.18715. The dollar index against a basket of major currencies stood at 92.431, its lowest in over a week. Immediate resistance can be seen at 1.1893 (Daily high), an upside break can trigger rise towards 1.1949 (Higher BB).On the downside, immediate support is seen at 1.1847 (38.2% fib), a break below could take the pair towards 1.1816 (50%fib).
GBP/USD Sterling gained against the dollar on Tuesday as traders awaited news on the progress of trade talks between Britain and the European Union. Britain’s chief negotiator David Frost has told Prime Minister Boris Johnson to expect a Brussels trade deal early next week , The Sun reported on Monday, with a possible landing zone as soon as next Tuesday. That had followed news last week that Dominic Cummings, one of the political architects of the Brexit project was set to leave the government, leading some observers to predict a greater chance of a deal. Immediate resistance can be seen at 1.3304(Higher BB), an upside break can trigger rise towards 1.3338 (23.6% fib).On the downside, immediate support is seen at 1.3236 (38.2%fib), a break below could take the pair towards 1.3151(50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as rising coronavirus cases weighed on investor sentiment, but a recovery in oil prices helped the loonie recoup some of its decline. U.S. crude oil futures reversed an earlier decline to settle 0.2% higher at $41.43 a barrel. Hopes for a COVID-19 vaccine and the possibility of tighter supply policies from OPEC and some other major producers offset surging virus infections. The Canadian dollar was trading 0.2% lower at 1.3095 to the greenback, having traded in a range of 1.3063 to 1.3116.Immediate resistance can be seen at 1.3119 (14DMA), an upside break can trigger rise towards 1.3159 (50%fib).On the downside, immediate support is seen at 1.3018 (23.6%fib), a break below could take the pair towards 1.2982 (Nov 10th low).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as greenback was weighed down by optimism over a second coronavirus vaccine, as the outlook for the currency remained downbeat with the Federal Reserve and U.S. Congress poised to do more to ease COVID-19’s economic damage. Policymakers’ response to a record number of coronavirus cases, hospitalisations and deaths in several U.S. states is likely to remain of greater concern. In afternoon trading, the dollar index fell to a one-week low against a basket of major currencies, and last stood at 92.426, down 0.1%. Strong resistance can be seen at 104.59 (38.2 %fib), an upside break can trigger rise towards 105.02 (50%fib).On the downside, immediate support is seen at 104.04 (23.6%fib), a break below could take the pair towards 103.58 (Lower BB).
Equities Recap
European stocks slipped from eight-month highs on Tuesday, as tighter coronavirus restrictions across the continent raised doubts about a swift economic rebound and countered optimism about a COVID-19 vaccine.
UK's benchmark FTSE 100 closed up by 0.87 percent, Germany's Dax ended down by 0.04percent, France’s CAC finished the day up by 0.21 percent.
U.S. stocks retreated from record closing highs on Tuesday, ending lower as surging COVID-19 cases, the growing threat of a fresh round of economic lockdowns and weak retail sales data dampened the euphoria caused by potential vaccine breakthroughs.
Dow Jones closed down by 0.56 %percent, S&P 500 closed down by 0.48% percent, Nasdaq settled down by 0.21 % percent.
Commodities Recap
Oil prices were little changed on Tuesday as worries that lockdowns to fight a new surge in coronavirus cases could hit short-term demand offset hopes for a vaccine and the possibility of tighter OPEC+ supply policies.
Brent futures fell 7 cents, or 0.2%, to settle at $43.75 a barrel, while U.S. crude gained 9 cents, or 0.2%, to settle at $41.43.
Gold inched down but held in a narrow range on Tuesday, as a weaker dollar and concerns about mounting coronavirus cases and their impact on the economy vied with optimism about the race to deliver a vaccine.
Spot gold was down 0.2% at $1,884.91 per ounce by 01:47 p.m. EDT (1847 GMT). U.S. gold futures settled 0.1% lower at $1,885.10.