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  |   Market Roundups


America’ Roundup: Sterling regains lost ground after BoE negative rate talk,Wall Street falls ,Gold slips ,Oil rises 2%, reverses loses as OPEC+ addresses market weakness-September 18th,2020

Market Roundup

•US Sep Philly Fed CAPEX Index 31.00,  23.00 previous

•US Aug Housing Starts (MoM)  -5.1%, 22.6% previous

•US Continuing Jobless Claims 12,628K,13,000K forecast, 13,385K previous

•US Jobless Claims 4-Week Avg  912.00K, 970.75K previous

•Canada ADP Nonfarm Employment Change -205.4K, 1,149.8K previous

•US Sep Philly Fed Employment  15.7,9.0 previous

•US Sep Philly Fed Prices Paid  25.10,15.30 previous

•US Sep Philly Fed New Orders 25.5, 19.0 previous

•US Aug Building Permits (MoM) -0.9%, 17.9% previous

•US Sep Philadelphia Fed Manufacturing Index 15.0,  15.0, 17.2 previous

•US Aug Housing Starts  1.416M,1.478M forecast, 1.496M previous

•US Sep Philly Fed Business Conditions 56.6, 38.8 previous

•US Aug Building Permits  1.470M,1.520M forecast, 1.483M previous

•Russia Central Bank Reserves (USD) 591.8B,591.7B previous

• Natural Gas Storage 89B,79B forecast, 70B previous

• US 8-Week Bill Auction 0.095% , 0.105% previous

• US 4-Week Bill Auction 0.080%, 0.090% previous

Looking Ahead – Economic Data (GMT)

•23:30 Japan Aug CPI, n.s.a (MoM)  0.1% previous

•23:30 Japan Aug National Core CPI (YoY)   -0.4%,0.0% previous

•23:30 Japan Aug National CPI (YoY) 0.3% previous

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

Looking Ahead - Events, Other Releases (GMT)

•No significant events ahead

 Currencies Summaries

EUR/USD: The euro was little changed against dollar on Thursday after U.S. weekly jobless claims data pointed to a sluggish economic recovery. Immediate resistance can be seen at 1.1840 (21 DMA), an upside break can trigger rise towards 1.1935 (Higher BB).On the downside, immediate support is seen at 1.1729 (38.2%fib), a break below could take the pair towards 1.1756  (Lower BB ).

GBP/USD: The pound fell sharply on Thursday after the Bank of England said it had briefed monetary policymakers on how a negative interest rate could be brought in, before recovering most of the lost ground in later trading. The Bank of England kept its main stimulus programmes on hold, as expected, and said that Britain’s economy had performed better than expected. Sterling fell as much as 0.7% against the dollar in the ten minutes after the meeting minutes were released, then extended losses to as low as $1.2866. By 2015 GMT, the pound was at $1.2977, up just 0.08% on the day . Immediate resistance can be seen at 1.2987 (50% fib), an upside break can trigger rise towards 1.3063 ( 14 DMA).On the downside, immediate support is seen at 1.2865 (38.2% fib), a break below could take the pair towards 1.2714 (23.6%fib).

USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as global stocks and oil prices fell, while domestic data showed payroll jobs declined for the sixth straight month. The loonie  was trading 0.3% lower at 1.3222 to the greenback, or 75.63 U.S. cents. The currency touched its weakest intraday level since Sept. 9 at 1.3247. Canada lost 205,400 nonfarm payroll jobs in August, the sixth straight month of decline, a report from payroll services provider ADP showed. The report is derived from ADP’s payrolls data. The ADP data paints a bleaker picture than government labour market data. Immediate resistance can be seen at 1.3437(Daily high), an upside break can trigger rise towards 1.3467 (Feb 28th high).On the downside, immediate support is seen at 1.3132 (5 DMA), a break below could take the pair towards 1.3332 (11 DMA).

USD/JPY: The dollar declined to hit seven week low against the Japanese yen on Thursday after the U.S. Federal Reserve’s pledge to keep rates near zero until at least 2023. The U.S. central bank on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot its 2% target . New economic projections released with the policy statement showed most policymakers see interest rates on hold through to at least 2023, with inflation not breaching 2% over that period. Strong resistance can be seen at 105.16 (Daily high), an upside break can trigger rise towards 105.55 (50% fib).On the downside, immediate support is seen at 104.47 (38.2%fib), a break below could take the pair towards 104.00  (Psychological level).

Equities Recap

European shares broke a four-day winning run on Thursday, with banks reeling from the prospect of near-zero interest rates for a prolonged period, while a technology stock sell-off continued on Wall Street, piling pressure on European tech shares.

UK's benchmark FTSE 100 closed down by 0,48 percent, Germany's Dax ended down by 0.36 percent, France’s CAC finished the day down by 0.68 percent.

U.S. stock indexes dropped more than 2% on Thursday as the swift spread of the coronavirus in the United States led California to declare an emergency, while airline stocks were hammered by crippled travel demand.

Dow Jones was ended  down by 0.47 percent, S&P 500 was trading  lower by 0.82 percent, Nasdaq was trading  down by 1.27 percent.

Treasuries Recap

 U.S. Treasury yields came back from declines on Thursday as stocks pared losses, but the yield curve remained flatter as investors stayed skeptical of Federal Reserve efforts to stimulate economic growth and took stock of areport showing persistently high jobless claims.

The yield on the benchmark 10-year U.S. Treasury note was down half a basis point at 0.6822% in afternoon trading after touching as low as 0.646%, the lowest since Sept.4, on Thursday morning.

Commodities Recap

Gold prices fell on Thursday to the lowest in more than a week, after the U.S. Federal Reserve dashed investors’ hopes for more stimulus to support the coronvirus-hit economy.

Spot gold was up 0.5% at $1,949.64 an ounce by 1147 GMT, off an earlier low of $1,929.69, while U.S. gold futures gained 0.6% to $1,958.10.

Oil prices rose more than 2% on Thursday, turning positive as OPEC and its allies said the producer group would crack down on countries that failed to comply with output cuts and planned to hold an extraordinary meeting in October if oil markets weaken further.

Brent oil futures extended gains to settle up $1.08 or 2.56% at $43.30 a barrel. U.S. crude futures settled higher by 81 cents, or 2.02% at $40.97 a barrel. Both contracts rose more than 4% on Wednesday.

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