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Europe Roundup: Sterling gains against dollar as traders see hope of avoiding cliff-edge Brexit,European stocks jump, Gold drops, Oil steady as surging virus cases cloud demand outlook-September 28th,2020

Posted at 28 September 2020 / Categories Market Roundups


Market Roundup

•Sweden Aug Retail Sales (YoY)  3.0%,4.8% previous

•Sweden Aug Retail Sales (MoM)  -0.3%,1.0% forecast, 1.9% previous

•Sweden Aug Trade Balance  -1.60B, 2.90B previous

•Irish Aug Retail Sales (YoY)  9.1%,6.4% previous

Looking Ahead - Economic Data (GMT)

•French 12-Month BTF Auction -0.581% previous

•French 3-Month BTF Auction  -0.574% previous

•French 6-Month BTF Auction -0.583% previous

•Brazil Federal Tax Revenue 110.20B forecast, 115.90B previous

• Brazil Bank Aug lending (MoM)  1.0% previous

•US Sep Dallas Fed Mfg Business Index  8.0 previous

•US 3-Month Bill Auction 0.110% previous

US 6-Month Bill Auction 0.105% previous

Looking Ahead - Events, Other Releases (GMT)

•18:00 US FOMC Member Mester Speaks

•13:45 EU ECB's Schnabel Speaks

•13:30 German Buba Mauderer Speaks

•13:45 ECB President Lagarde Speaks

Fxbeat

EUR/USD: The euro edged higher against dollar on Monday as investors balanced optimism about signs of a strengthening economic recovery in China with a rising tally of COVID-19 cases that could lead to more lockdown measures. Strong economic data in China helped improve sentiment in stock markets and some of that optimism filtered over to euro.Investors eye euro zone consumer confidence and industrial sentiment data for September, with investors keen to see whether the region’s economic recovery has stalled or whether it is improving. Immediate resistance can be seen at 1.1673 (Daily high), an upside break can trigger rise towards 1.1731(38.2%fib).On the downside, immediate support is seen at 1.1619 (23.6% fib ), a break below could take the pair towards 1.1601 (lower BB).

GBP/USD: Sterling  gained against dollar on Monday on hopes that Britain could secure a Brexit trade deal with the European Union by October or at least avoid a cliff-edge exit from the bloc.A final agreement must be reached by the end of December but both sides have set a preliminary deadline for next month as it would take some time to sign off any deal.The Bank of England and the European Union’s securities watchdog said on Monday they have agreed on the information-sharing arrangements needed for the bloc’s banks to continue using clearing houses in London from January. Sterling was 1.25% higher against the dollar at 1.2900 by 1230 GMT, its highest since Sept. 21. Immediate resistance can be seen at 1.2948 (50%fib), an upside break can trigger rise towards 1.2987(21DMA).On the downside, immediate support is seen at 1.2834 (5DMA), a break below could take the pair towards 1.2667(23.6%fib).

USD/CHF: The dollar edged lower against Swiss franc on Monday as investors were  worried about economic recovery  before a barrage of economic data and political developments in the United States. A rebound in U.S. stocks on Friday has helped curb the ascent of the dollar, considered a safe haven, but signs of slowdown in the nascent recovery from the pandemic and political uncertainties have kept investors on guard. The dollar index slipped to 94.21. It reached a two-month high of 94.745 last week and posted its biggest weekly rise since early April. Immediate resistance can be seen at 0.905(23.6% fib), an upside break can trigger rise towards 0.9335 (100DMA).On the downside, immediate support is seen at 0.9254(38.2% fib), a break below could take the pair towards 0.9255(5 DMA).

USD/JPY: The dollar dipped against the Japanese yen on Monday as a resurgence of coronavirus infections in Europe and caution ahead of the U.S. presidential elections in November caused investors to re-evaluate their expectations for a global economic recovery. Investors remain broadly cautious in light of rising new COVID-19 infections in Europe, which pose the risk of further restrictions on activity. The World Health Organization said on Friday that it is worried about rising infections and hospitalisations ahead of the Northern Hemisphere’s flu season. Strong resistance can be seen at 105.68 (38.2% fib), an upside break can trigger rise towards 105.78 (50DMA).On the downside, immediate support is seen at 105.19 (5DMA ), a break below could take the pair towards 104.65(23.6% fib).

Equities Recap

European stocks partly recovered from last week’s hefty losses on Monday, helped by upbeat industrial profits data from China and a jump in German lender Commerzbank after it appointed a new chief executive officer.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading upat 1.85 percent, Germany's Dax was up by 3.10 percent, France’s CAC   was last up by 2.42 percent.

Commodities Recap

Gold eased on Monday as positive economic data from China boosted risk-sentiment, dimming the safe-haven metal’s allure, ahead of the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden.

Spot gold fell 0.1% to $1,858.55 per ounce by 1110 GMT. U.S. gold futures were down 0.3% to $1,861.10.

Oil prices were steady on Monday but on track for their first monthly fall since April as rising coronavirus cases continued to spur concerns about demand.

Brent crude rose 12 cents, or 0.3%, to $42.04 a barrel by 1151 GMT. U.S. West Texas Intermediate was at $40.36 a barrel, up 11 cents or 0.3%.


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