Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

America’s Roundup: Dollar falls to lowest level in almost 3 months, Wall Street rises, Gold dives below $1,800, Oil prices post weekly gain ahead of OPEC+ meeting-November 28th,2020

Market Roundup

• U.S. COVID deaths hit more than 260,000

• Highly-anticipated vaccine facing more scrutiny

• Trump says will leave if Biden wins Electoral College vote

• U.S. yield curve flatter for 2nd day

• Oil hit by concerns about oversupply

• Canadian dollar rises 0.2% against the greenback

Looking Ahead - Economic Data (GMT) 

•No data ahead

Looking Ahead - Economic events and other releases (GMT)

• 13:30 BoE MPC Member Haldane Speaks  

Currency Summaries

EUR/USD: The euro strengthened against dollar on Friday as market showed little reaction to downbeat comments from the European Central Bank's chief economist Philip Lane on Thursday. The ECB committed in October to further easing in December, which has underpinned euro zone government bonds in recent weeks. The moves have been muted since bonds recovered from a sell-off on optimism around coronavirus vaccines. Dovish comments by ECB chief economist Philip Lane on Thursday regarding inflation and the minutes of the bank’s October meeting added to expectations of more stimulus. Immediate resistance can be seen at 1.1935(38.2%fib), an upside break can trigger rise towards 1.1958 (23.6%fib).On the downside, immediate support is seen at 1.1917 (50%fib), a break below could take the pair towards 1.1897 (61.8% fib).

GBP/USD: Sterling edged down on Friday but remains near a three-month high, brushing off fresh talk of a Scottish independence referendum that could wrench apart the United Kingdom after Brexit. Scottish leader Nicola Sturgeon said the independence vote should take place in the earlier part of the devolved parliament’s next term, which begins next year.Scots voted 55-45% against independence in a 2014 referendum but both Brexit and the British government’s handling of the COVID-19 crisis have boosted support for independence among Scots. Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3487 (Aug 24th high).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3264 (23rd Nov low).

USD/CAD: The Canadian dollar strengthened to a near three-week high against its U.S. counterpart on Friday, as the greenback broadly declined in thinner than usual trading conditions following the previous day's U.S. Thanksgiving holiday. The U.S. dollar hit its lowest level in almost three months, after strong economic data from China favored commodity currencies over safe havens and equity markets continued their rally. The loonie was trading 0.2% higher at 1.2983 to the greenback, having touched its strongest intraday level since Nov. 9 at 1.2972. For the week, the currency was up 0.9%. Immediate resistance can be seen at 1.3025(38.2%fib), an upside break can trigger rise towards 1.3046(9DMA).On the downside, immediate support is seen at 1.2964 (Daily low), a break below could take the pair towards 1.2928 (23.6%fib).

USD/JPY: The dollar declined against the Japanese yen on Friday as concerns about rising coronavirus cases and expectation of soft US data next week weighed on greenback. The surging COVID-19 numbers though remained a market focus despite positive news on the vaccine front.U.S. coronavirus deaths were now at more than 260,000, while cases continued to grow, nearing 13 million. Next week's heavy slate of U.S. economic data, which includes non-farm payrolls for November, could reinforce expectations of a setback in the U.S. recovery as several states instituted shutdowns to prevent the spread of the virus. Dollar-yen was down 0.2% at 104.10 at 18:30 GMT. Strong resistance can be seen at 104.34 (38.2% fib), an upside break can trigger rise towards 104.48(330DMA).On the downside, immediate support is seen at 103.86 (23.6%fib), a break below could take the pair towards 103.61 (18 Nov low).

Equities Recap

European shares edged lower on Friday as investors exercised caution ahead of a barrage of economic data due later in the day, while doubts about the effectiveness of AstraZeneca’s COVID-19 vaccine also hit sentiment.

UK's benchmark FTSE 100 closed up by 0.07percent, Germany's Dax ended up by 0.37 percent, France’s CAC finished the day up by 0.56 percent.                

Wall Street’s main indexes rose and the Nasdaq hit a record high on Friday as optimism around an economic rebound next year outweighed concerns around an expected surge in coronavirus infections following the Thanksgiving holiday.

Dow Jones closed up  by  0.13% percent, S&P 500 closed up by 0,24% percent, Nasdaq settled up  by 0.92% percent.

Treasuries Recap

U.S. Treasury yields dropped on Friday in thin post-holiday trading, weighed down by persistent concerns about the continued surge in coronavirus cases and possibly weaker economic data next week amid renewed lockdowns in several U.S. states and around the world.

U.S. benchmark 10-year yields fell to 0.842%, from 0.878% late on Wednesday.U.S. 30-year yields slid to 1.575% from Wednesday’s 1.62%.

Commodities Recap

Gold slumped 2%, breaking below the key $1,800 support level to a near five-month trough on Friday, as growing optimism about a quick vaccine-fuelled economic recovery and a smooth White House transition powered share market to fresh records.

Spot gold slid 1.4% to $1,785.11 per ounce by 11:43 a.m EDT (1643 GMT), earlier falling to its lowest since July 6 at $1,773.10 an ounce.U.S. gold futures slipped 1.2% to $1,784 an ounce.

Brent crude January futures rose 38 cents to settle at $48.18 a barrel, while the more active February contract gained 46 cents to $48.25.

U.S. West Texas Intermediate (WTI) crude futures fell 18 cents to settle at $45.53 a barrel.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.