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America’s Roundup: Dollar eases from two-month high as equities rally,Wall street rises,Gold holds steady, Oil up 1% on economic hope; virus fears check price gains-September 29th,2020

Posted at 28 September 2020 / Categories Market Roundups


Market Roundup

• Brazil Aug Bank lending (MoM) 1.9%,1.0% previous

• French 12-Month BTF Auction-0.601%,-0.581% previous

•US Sep Dallas Fed Mfg Business Index  13.6, 8.0 previous

•US Sep Dallas Fed Mfg Business Index  13.6, 8.0 previous

Looking Ahead - Economic Data (GMT)

• 23:30 Japan Tokyo Sep Core CPI (YoY)  -0.3% from to-0.3% previous

• 23:30 Japan Tokyo Sep CPI (YoY)  0.3% previous

• 23:30 Japan Tokyo Sep CPI Tokyo Ex Food and Energy (MoM)  -0.3% previous

•05:00 Japan Coincident Indicator (MoM) 1.8% previous

•05:00 Japan Leading Index 86.9, 84.4previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currencies Summaries

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: The British pound rose more than 1% 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.The EU and Britain kicked off a decisive week of talks on Monday but cautioned that a deal was still some way off. A final agreement must be reached by the end of December but both sides have set a preliminary deadline for next month as it will take some time to sign off any deal. Sterling was trading 1% higher at $1.2863 by 1500 GMT, having earlier risen to a one-week high of $1.2930. 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/CAD: The Canadian dollar edged higher against its broadly weaker U.S. counterpart on Monday as stock markets rose globally, with the loonie finding some support after posting three straight weekly declines. Wall Street rallied following the longest weekly losing streak in a year for the S&P 500   and the Dow , while the U.S. dollar  pulled back from a two-month high against a basket of major currencies. The Canadian dollar   was trading 0.1% higher at 1.3370 to the greenback. The currency, which on Thursday hit a seven-week low at 1.3418, traded in a range of 1.3361 to 1.3403.Immediate resistance can be seen at 1.3401 (Daily high), an upside break can trigger rise towards 1.3450(23.6 % fib).On the downside, immediate support is seen at 1.3365 (38.2% fib), a break below could take the pair towards 1.3291  (50%fib).

USD/JPY: The dollar edged higher against the Japanese yen on Monday as equities rallied after four straight weeks of declines ahead of a busy week of economic data and political developments in the United States. A rebound in U.S. stocks at the end of last week helped   the dollar, considered a safe haven, but signs of a slowdown in the nascent recovery from the pandemic and political uncertainties have kept investors on the defensive. 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 rose on Wednesday, as a rebound in beaten-down travel stocks and gains for Adidas and other sports names took the edge off data that highlighted an uneven path for economic recovery in the euro zone.

UK's benchmark FTSE 100 closed up by 1.20 percent, Germany's Dax ended up  by 0.39 percent, France’s CAC finished the day up by 0.62 percent.

U.S. stocks jumped on Monday, bouncing back from the longest weekly losing streak in a year for the S&P 500 and the Dow, with technology, banks and travel-related shares leading the advance.

Dow Jones closed up by  1.51% percent, S&P 500 closed down by 1.61% percent, Nasdaq settled up by 1.02%  percent.

Treasuries Recap

U.S. Treasury yields were roughly flat toward the end of a quiet Monday, with no significant data releases or Treasury issuance on the calendar, and investors holding off from making significant moves ahead of Tuesday’s presidential debate.

The benchmark 10-year yield was up 0.2 basis point on the day at 0.661%, with the 30-year yield last up 1.6 basis points at 1.421%. The two-year yield was unchanged on the day at 0.131%.

Commodities Recap

Gold rose on Monday, erasing early losses as the dollar retreated from a two-month peak ahead of the U.S. presidential debates this week, although a stock market rebound capped gains in bullion.

Spot gold gained 0.3% to $1,865.32 per ounce by 10:53 a.m. EDT (1453 GMT), while U.S. gold futures added 0.4% to $1,873.

Oil prices rose 1% on Monday as global equities rallied on hopes for another U.S. stimulus package, but rising virus cases fed concerns about fuel demand and kept oil futures from moving higher.

Brent crude   settled at $42.43 a barrel, up 51 cents, or 1.22%. U.S. West Texas Intermediate  settled at $40.60 a barrel, rising 35 cents, or 0.87%.


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