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America’s Roundup: U.S. dollar skids to two-week low vs yen as Fed looms,Wall Street climbs, Gold slips, Oil rises over 2% as U.S. Gulf Coast braces for hurricane -September 16th,2020

Posted at 15 September 2020 / Categories Market Roundups


Market Roundup

•US Import Price Index (YoY) -1.4%,-3.3% previous

•US Export Price Index (YoY) -2.8%,-4.4% previous         

•US Jul Manufacturing Sales (MoM) 7.0%,8.7% forecast, 20.7% previous              

•US Sep NY Empire State Manufacturing Index  17.00, 6.00 forecast, 3.70 previous          

•US Aug Import Price Index (MoM)  0.9%,0.5% forecast, 0.7% previous

•US Aug Export Price Index (MoM)  0.5%,0.4% forecast, 0.8% previous 

•US Redbook (YoY) -1.2%,-0.1% previous            

•US Redbook (MoM) -1.6%,-1.0% previous        

•US Aug Industrial Production (MoM)  0.4%,1.0% forecast, 3.0% previous            

•US Aug Capacity Utilization Rate  71.4% , 71.%% forecast, 70.6% previous

•US Aug Industrial Production (YoY)  -7.73% , -8.18% previous

•New Zealand GlobalDairyTrade Price Index 3.6%,-1.0% previous

•Russia Aug Industrial Production (YoY)  -7.2%,-7.1% forecast, -8.0% previous

Looking Ahead – Economic Data (GMT)

•22:45 New Zealand Current Account (QoQ) (Q2) 0.60B forecast, 1.56B previous

•22:45 New Zealand Current Account % of GDP (Q2) -2.50%, -2.70% previous

•22:45 New Zealand Current Account (YoY) (Q2)  -7.37B, -8.51B previous

•23:50 Japan Imports (YoY)   -18.0%,-22.3% previous

•23:50 Japan Aug Exports (YoY)                 -16.1% forecast, -19.2% previous

•23:50 Japan Aug Trade Balance -37.5B forecast,10.9B previous

•00:00 Australia HIA New Home Sales (MoM) -10.9% previous

•00:00 Australia MI Leading Index (MoM) 0.01% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant leads

Currencies Summaries

EUR/USD: The euro edged higher against dollar on Tuesday as surprise jump   in Germany’s ZEW sentiment survey boosted euro across the boar. Investor sentiment in Germany rose unexpectedly in September, the ZEW economic research institute said on Tuesday, signalling confidence in a recovery from the coronavirus crisis despite headwinds from stalled Brexit talks and rising new infections. The survey of investors’ economic sentiment rose to 77.4 from 71.5 points the previous month. Immediate resistance can be seen at 1.1892 (61.8% fib), an upside break can trigger rise towards 1.1935 (Higher BB).On the downside, immediate support is seen at 1.1846 (21 DMA), a break below could take the pair towards 1.1815 (50% fib ).

GBP/USD: Sterling rose on Tuesday following better-than-expected jobs data and after British Prime Minister Boris Johnson cleared the first hurdle for legislation that would breach the Brexit treaty, although analysts said the bounce was likely temporary.Johnson won the so-called second reading parliamentary vote but faces a growing rebellion from his own party as the bill moves through parliament. The pound, which has fallen sharply in recent weeks as investors fretted that Johnson’s plan sharply increased the risk of a no-deal Brexit, was 0.4% higher at $1.2891, moving away from two-week lows. Immediate resistance can be seen at 1.2927 (Sep 15th high), an upside break can trigger rise towards 1.3011 (50%fib), immediate support is seen at 1.2839 (5DMA), a break below could take the pair towards 1.2747(23.6%fib).

USD/CAD: The Canadian dollar gained ground against its broadly weaker U.S. counterpart on Tuesday as oil prices rose and domestic data showed further recovery in factory shipments, but the move was restrained ahead of a Federal Reserve policy decision this week. Canadian factory sales rose for the third straight month in July, adding to evidence of economic recovery from the coronavirus pandemic. Sales were up by 7.0% from June on higher motor vehicle sales, as well as petroleum and coal. The loonie was trading 0.2% higher at 1.3150 to the greenback. The currency traded in a range  of 1.3134 to 1.3186. Immediate resistance can be seen at 1.3215 (50 %fib), an upside break can trigger rise towards 1.3275(Sep 9th high).On the downside, immediate support is seen at 1.3177 (5 DMA), a break below could take the pair towards 1.3110(38.2%fib).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as expectations the Federal Reserve will maintain its downbeat stance on the U.S. economy weighed on greenback. The Fed begins a two-day meeting on Tuesday and analysts expect the U.S. central bank to affirm its current zero-interest-rate policy over the next three years, a view that could further weigh on the dollar. The dollar fell 0.3% against the yen  to 105.46, after earlier sliding to a two-week low of 105.30 yen.Strong resistance can be seen at 110.40 (Higher BB), an upside break can trigger rise towards 111.00 (Psychological level).On the downside, immediate support is seen at 110.16 (5 DMA), a break below could take the pair towards 109.35 (11 DMA).

Equities Recap

Tech stocks pushed Wall Street’s main indexes higher on Tuesday as positive U.S. factory data fueled optimism around an economic rebound, while investors looked for continued support from the Federal Reserve as its two-day meeting got underway.

UK's benchmark FTSE 100 closed up by  1.32 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day up by 0.32 percent.                

Tech stocks pushed Wall Street’s main indexes higher on Tuesday as positive U.S. factory data fueled optimism around an economic rebound, while investors looked for continued support from the Federal Reserve as its two-day meeting got underway.

Dow Jones closed up  by  0.01% percent, S&P 500 closed up by 0.52% percent, Nasdaq settled upby 1.21%  percent.

Treasuries Recap

Investors drove longer-term U.S Treasury yields higher on Tuesday, steepening the yield curve, as equity markets rose while the Federal Reserve began a two-day meeting.

 The benchmark 10-year yield was up a basis point at 0.6789% in afternoon trading.

Commodities Recap

Gold slipped from a near-two week high on Tuesday as the dollar rose, although hopes for a dovish monetary policy stance from the U.S. Federal Reserve limited the safe-haven metals’ losses.

Spot gold fell 0.3% to $1,950.92 per ounce at 10:35 a.m. EDT (1435 GMT), after earlier climbing to its highest since Sept. 2 at $1,971.71. U.S. gold futures eased 0.2% to $1,959.20.

Oil prices rose more than 2% on Tuesday, supported by hurricane supply disruptions in the United States, but demand concerns loomed as energy industry forecasters predicted a slower-than-expected recovery from the pandemic.

Brent crude   gained 92 cents, or 2.3%, to settle at $40.53 a barrel, while U.S. West Texas Intermediate (WTI) crude futures   rose $1.02, or 2.7%, to settle at $38.28 a barrel. Both contracts fell on Monday.


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