Market Roundup
•US Sep Challenger Job Cuts 118.804K, 115.762K previous
•US Challenger Job Cuts (YoY) 185.9%,116.5% previous
•US Jobless Claims 4-Week Avg 867.25K, 878.25K previous
•US Initial Jobless Claims 837K, 850K forecast, 870K previous
•US Continuing Jobless Claims 11,767K, 12,225K forecast, 12,580K previous
•US Canada Aug Building Permits (MoM) 1.7%, 5.5% forecast, -3.0% previous
•US Aug Personal Income (MoM) -2.7%,-2.4% forecast, 0.4% previous
•US Aug Core PCE Price Index (YoY) 1.6%,1.4% forecast, 1.3% previous
•US Aug Core PCE Price Index (MoM) 0.3%,0.3% forecast, 0.3% previous
•US Aug Personal Spending (MoM) 1.0%,0.8% forecast, 1.9% previous
•US Aug PCE price index (MoM) 0.3%, 0.3% previous
•US Aug PCE Price index (YoY ) 1.4, 1.0 previous
•US Aug Real Personal Consumption (MoM) 0.7%, 1.6% previous
•Russia Central Bank Reserves (USD) 580.7B, 590.9B previous
•US Sep Manufacturing PMI 53.2, 53.5 forecast, 53.1 previous
• US Sep ISM Manufacturing Prices 62.8, 58.6 forecast, 59.5 previous
• US Aug Construction Spending (MoM) 1.4%, 0.8% forecast, 0.1% previous
• US ISM Manufacturing Employment 49.6,45.8 forecast, 46.4 previous
•14:00 US Sep ISM Manufacturing PMI 55.4, 56.4 forecast, 56.0 previous
•14:00 US Aug Dallas Fed PCE 2.60%, 2.00% previous
Looking Ahead Economic Data
•23:30 Japan Aug Unemployment Rate 3.0% forecast, 2.9% previous
•23: 30 Japan Aug Jobs/applications ratio 1.05 forecast, 1.08 previous
•23: 50 Japan Monetary Base (YoY) 11.5% previous
•01: 30 Australia Aug Retail Sales (MoM) -4.2% forecast, 3.2% previous
•05: 00 Japan Sep Household Confidence 29.3 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro strengthened on Thursday as upbeat Eurozone Sep manufacturing PMI data boosted euro. The recovery in euro zone manufacturing activity gathered pace last month but it was largely driven by strength in powerhouse Germany, and rising coronavirus cases across the region may yet reverse the upturn, a survey showed. Manufacturing Purchasing Managers’ Index to 53.7 in September from August’s 51.7, in line with an earlier flash reading and its highest level since August 2018.Anything above 50 indicates growth. Immediate resistance can be seen at 1.1771 (21 DMA), an upside break can trigger rise towards 1.1791 (50% fib).On the downside, immediate support is seen at 1.1711 (38.2% fib), a break below could take the pair towards 1.1683 (30th Sep low).
GBP/USD: Sterling dipped against dollar on Thursday, after markets swung on contradicting assessments of prospects for Britain and the European Union to reach a Brexit deal. The pound had a tumultuous day, rising and falling in direct response to Brexit-related news, as Britain and the EU neared the end of the last scheduled round of trade talks before the bloc’s leaders assess progress on Oct. 15-16. At 23:00 GMT, the pound was at $1.2880, down 0.1% on the day. Immediate resistance can be seen at 1.2977 (50% fib), an upside break can trigger rise towards 1.3019 (30 DMA).On the downside, immediate support is seen at 1.2855 (38.2% fib), a break below could take the pair towards 1.2800 (5DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as investors grew more optimistic about additional U.S. stimulus, but the currency gave up some of its gains as oil fell. U.S. stock index futures rose after the Trump administration said it had proposed a new coronavirus fiscal aid package to House of Representatives Democrats worth more than $1.5 trillion. The loonie was trading 0.1% higher at 1.3304 to the greenback, having touched its strongest intraday level since Sept. 21 at 1.3279. Last month, the loonie fell 2.1%, ending a five-month streak of gains. Immediate resistance can be seen at 1.3295 (50%fib), an upside break can trigger rise towards 1.3356 (1nd Oct high).On the downside, immediate support is seen at 1.4047 (9 DMA), a break below could take the pair towards 1.3245 (21 DMA).
USD/JPY: The dollar recovered earlier lost ground against the Japanese yen on Thursday as hopes for U.S. fiscal stimulus cheered investors and spurred them to seek greenback. Congressional Democrats have proposed a $2.2 trillion package to respond to a pandemic, while Republicans have suggested a $1.6 trillion response. Thursday’s U.S. data had minimal impact on currencies. Data showed U.S. initial jobless claims fell last week but remained at recession levels, while personal income dropped in August. Strong resistance can be seen at 105.62 (38.2% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.22 (11 DMA), a break below could take the pair towards 105.59 (23.6%fib).
Equities Recap
European stocks handed back most of their early gains to close slightly higher on Thursday, as a slide in oil majors and German drugs company Bayer offset a slew of positive earnings reports.
UK's benchmark FTSE 100 closed up by 0.43 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day upby 0.23 percent.
Wall Street closed higher at the end of a whipsaw session on Thursday as investors juggled hopeful and pessimistic news on the progress of stimulus talks Washington amid signs of waning momentum of economic recovery from the pandemic recession, now entering its ninth month.
Dow Jones closed up by 0.13% percent, S&P 500 closed up by 0.53 % percent, Nasdaq settled up by 1.44% percent.
Treasuries Recap
Yields on longer-dated Treasury bonds on Thursday afternoon retraced earlier gains, driving the yield curve flatter, as investors waited for closely watched federal jobs data to be released Friday morning.
The benchmark 10-year yield was flat at 0.676% and the 30-year yield was also flat at 1.452%.
Commodities Recap
Gold jumped 1% on Thursday to surpass the key $1,900 level on renewed hopes for a U.S. stimulus package that could help ease the economic pain from the coronavirus, while a easing dollar further boosted the safe-haven metal.
Spot gold rose 1.04% to $1,905.06 per ounce by 11:05 am EDT (1505 GMT), having earlier risen to its highest since Sept. 22 at $1,908.86. U.S. gold futures rose 0.72 % to $1,909.20 per ounce.
Oil prices fell 3% on Thursday as rising coronavirus cases around the world dampened the demand outlook, and a rise in OPEC output last month also pressured prices.
Brent crude futures fell $1.37, or 3.2%, to settle at $40.93 a barrel after dropping to a low of $39.92. U.S. West Texas Intermediate (WTI) crude futures ended down $1.50, or 3.7%, at $38.72 after sliding more than 6% to a session low of $37.61.
