Posted at 14 November 2020 / Categories Market Roundups
Market Roundup
•US Oct Core PPI (MoM) 0.1%, 0.2% forecast,0.4%previous
•US Oct Core PPI (YoY) 1.1%, 1.2% forecast, 1.2% previous
•US Oct PPI (YoY) 0.5%, 0.4% forecast, 0.4% previous
•US Oct PPI (MoM) 0.3%,0.2% forecast, 0.4% previous
•US Nov Michigan Inflation Expectations 2.60%, 2.6% previous
•US Nov Michigan Consumer Expectations 85.8, 78.6 forecast, 79.2 previous
•US Nov Michigan Consumer Sentiment 77.0,82.0 forecast, 81.8 previous
•US Nov Michigan Current Conditions 71.3, 87.5 forecast, 85.9 previous
•US Nov Michigan 5-Year Inflation Expectations 2.8%, 2.40% previous
•US Michigan Inflation Expectations 2.8%, 2.6% previous
Looking Ahead Economic Data
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summary
EUR/USD: The euro edged higher against dollar on Friday as sentiment in euro zone was supported by a perception that upbeat news on a COVID-19 vaccine will not stop central banks from delivering more stimulus to prop up growth.News of a vaccine against the novel coronavirus is positive but it will take some time before this has a positive impact on economic activity, European Central Bank policymaker Pablo Hernandez de Cos said on Friday. That echoed comments from the heads of the Federal Reserve and the ECB on Thursday that stressed the economic outlook remains uncertain. Immediate resistance can be seen at 1.1845 (23.6% fib), an upside break can trigger rise towards 1.1900 (Psychological level).On the downside, immediate support is seen at 1.1793 (9DMA), a break below could take the pair towards 1.1763 (50%fib).
GBP/USD: Sterling ticked up on Friday against the dollar after news that British Prime Minister Boris Johnson’s top adviser and Brexit mastermind Dominic Cummings was set to leave, as talks over a trade deal with the European Union go down to the wire. The negotiations are set to miss another deadline of mid-November and continue into next week, ahead of a potentially crucial meeting of European leaders next Thursday. Sterling gained around a third of a percent versus the dollar and 0.3% against the euro.Sterling had lost ground on Thursday on Brexit jitters and news that Britain’s economy grew by a slower than expected 1.1% in September from August. Immediate resistance can be seen at 1.3195(38.2%fib),an upside break can trigger rise towards 1.3225(Nov 13th high).On the downside, immediate support is seen at 1.3102 (50%fib), a break below could take the pair towards 1.3019 (61.8%fib).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Friday, holding near its weakest level in more than a week, as oil prices fell and investors worried that surging COVID-19 cases would hurt the global economy. Investors see the likelihood of policy gridlock in Washington if the election earlier this month results in a split Congress. The Canadian dollar was trading nearly unchanged at 1.3140 to the greenback, or 76.10 U.S. cents, having touched its weakest intraday level since Nov. 5 at 1.3172. For the week, the currency was down 0.6%. Immediate resistance can be seen at 1.3163(50%fib), an upside break can trigger rise towards 1.3221 (6.8%fib).On the downside, immediate support is seen at 1.3099 (38.2%fib), a break below could take the pair towards 1.3016(23.6%fib)
USD/JPY: The dollar declined against the Japanese yen Friday as investors crept back to the safe-haven currency, worried about the economic damage of a trying winter in Europe and the United States as COVID-19 cases continue to surge.The yen rose 0.2% to 104.90 per dollar, its highest since Monday when it tumbled after Pfizer announced that it had developed a working virus vaccine. The yen remains down by about 1.5% against the dollar this week, its sharpest weekly drop in five months. Strong resistance can be seen at 105.26 (55 DMA), an upside break can trigger rise towards 105.53 (38.2%fib).On the downside, immediate support is seen at 104.80 (11 DMA), a break below could take the pair towards 104.63(9 DMA).
Equities Recap
Europe’s benchmark stock index fell on Friday, setting up to end its second straight week of gains on a glum note, as surging coronavirus cases compounded fears of the damage to the bloc’s economy in the coming winter months.
UK's benchmark FTSE 100 closed down by 0.36 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day up by 0.33 percent.
Wall Street gained ground on Friday with upbeat earnings reports helping to drive optimism about the economy even as investors weighed a current surge in virus cases against hopes for successful COVID-19 vaccines.
Dow Jones closed up by 1.37% percent, S&P 500 closed up by 1.36 % percent, Nasdaq settled down by 1.02% percent.
Treasuries Recap
U.S. Treasury yields were narrowly mixed on Friday in a choppy session after trading lower for most of the week, as investors consolidated positions ahead of the weekend and remained cautious overall given the surge in coronavirus cases.
U.S. benchmark 10-year yields were up at 0.896%, from 0.886% late on Thursday.U.S. 30-year yields were slightly lower at 1.648% from Thursday’s 1.652%.
Commodities Recap
Gold rose on Friday as increasing coronavirus infections globally re-ignited concerns about the economic toll from the pandemic, while scepticism over the reach of a potential COVID-19 vaccine further boosted the safe-haven metal.
Spot gold rose 0.5% to $1,884.76 per ounce by 1:57 p.m. EST (1857 GMT). But bullion was still bound for its worst weekly loss since late September, down 3.4% so far, mainly hurt by initial euphoria over an effective vaccine from Pfizer earlier in the week. U.S. gold futures settled up 0.7% at $1,886.20.
Oil prices fell about 2% on Friday, pressured by swelling output from Libya and fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.
Brent crude fell 75 cents, or 1.7%, to settle at $42.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 99 cents, or 2.4%, to end the session at $40.13 a barrel. For the week, both notched gains of more than 8%.