Market Roundup
•U.S. stimulus talks remain in focus
• US Weekly jobless claims dip below 800,000, but remain elevated
• US Jobless Claims 4-Week Avg 811.25K, 866.25K previous
• US Initial Jobless Claims 787K,860K forecast, 898K previous
• US Continuing Jobless Claims 8,373K,9,500K forecast, 10,018K previous
• Russia Central Bank reserves (USD) 585.3B, 585.3B previous
• EU Oct Consumer Confidence-15.5, -15.0 forecast, -13.9 previous
• US Sep Existing Home Sales6.54M, 6.30M forecast, 6.00M previous
• US Sep Existing Home Sales (MoM) 9.4%, 5.0% forecast, 2.4% previous
• US Sep Leading Index (MoM) 0.7%, 0.7% forecast, 1.2% previous
• US Natural Gas Storage 49B, 52B forecast, 46B previous
• US Oct KC Fed Composite Index 13, 11 previous
• US Oct KC Fed Manufacturing Index 23, 18 previous
Looking Ahead - Economic Data (GMT)
•21:45 New Zealand CPI (QoQ) (Q3) 0.9%,-0.5% previous
•21:45 New Zealand CPI (YoY) (Q3) 1.7% forecast,1.5% previous
•22:00 Australia Services PMI 50.8 previous
• 22:00 Australia Manufacturing PMI 55.4 previous
• 23:01 UK GfK Consumer Confidence -28, -25 previous
•23:50 Japan CPI Tokyo Ex Food and Energy (MoM) -0.1% previous
•23:50 Japan Sep National Core CPI (YoY) -0.4%forecast, -0.4% previous
•23:50 Japan Sep National CPI (YoY) 0.2% previous
•23:50 Japan Sep CPI, n.s.a (MoM) 0.2 previous
•23:50 Japan National CPI (MoM) 0.3% previoius
Looking Ahead - Economic Data (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro declined on Thursday as dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day. The news dented risk sentiment and lifted the dollar against its rivals. Immediate resistance can be seen at 1.1838(38.2%fib), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1791(50% fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: The pound slipped slightly against the dollar on Thursday, but held close to the six-week highs it hit in the previous session following news that stalled Brexit negotiations were due to resume. Sterling rose by as much as 1.7% versus the dollar on Wednesday after the European Union’s chief negotiator Michel Barnier said that a deal was within reach.It held close to those highs on Thursday, with the Brexit trade talks due to resume in the afternoon after negotiations were halted abruptly last week. Immediate resistance can be seen at 1.3128 (Higher BB), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3090 (50%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CAD: The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Thursday as Wall Street clung to hopes of a U.S. coronavirus relief package and oil prices climbed, with the loonie reversing its earlier decline. The Canadian dollar was trading 0.1% higher at 1.3138 to the greenback, or 76.12 U.S. cents, having traded in a range of 1.3123 to 1.3177. Since the start of the month, the loonie has gained 1.4%. Immediate resistance can be seen at 1.3150(11DMA) break can trigger rise towards 1.3184(38.2%fib).On the downside, immediate support is seen at 1.3107(23.6%fib), a break below could take the pair towards 1.3045 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on as hopes for a fiscal package in the United States before the November elections crumbled again and the global surge in COVID-19 cases fuelled demand for safe-haven assets like the greenback.Progress towards a U.S. stimulus deal has boosted sentiment in world markets and lifted demand for riskier assets in recent sessions. News that Europe has seen the number of coronavirus cases surge to a record high, with Spain becoming the first Western European country to exceed 1 million infections, added to the cautious tone in world markets.This backdrop appeared to favour the dollar, which had fallen for the last three days against a basket of other major currencies. Strong resistance can be seen at 105.71(38.6%fib), an upside break can trigger rise towards 105.01 (50%fib).On the downside, immediate support is seen at 104.30 (23.6%fib), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European shares fell for a fourth straight day on Thursday, though they trimmed losses after Britain’s Finance Minister Rishi Sunak unveiled billions of pounds more of financial aid for pandemic-hit businesses.
UK's benchmark FTSE 100 closed down by 0.16 percent, Germany's Dax ended down by 0.12 percent, France’s CAC finished the day up by 0.05 percent.
Shares on Wall Street gained on Thursday in choppy trading, as investors cheered the prospect of more fiscal stimulus to support a pandemic-damaged U.S. economy, with more data pointing to a slowing labor market recovery.
Dow Jones closed up by 0.54 percent, S&P 500 closed up by 0.52 percent, Nasdaq settled up by 0.19% percent.
Treasuries Recap
Benchmark U.S. Treasury yields rose to four-month highs on Thursday and the yield curve steepened on hopes that U.S. lawmakers are close to striking a deal on new fiscal stimulus.
Benchmark 10-year Treasury yields rose as high as 0.853%, the highest since June 9. The yield curve between two-year and 10-year notes steepened to 70 basis points, the widest spread since June 8.
Commodities Recap
Oil prices ticked up on Thursday, boosted by the possibility of an economic stimulus package in the United States, but struggled to recover fully from the previous session’s losses when higher U.S. gasoline inventories signalled a deteriorating demand outlook as coronavirus cases soar.
Brent crude futures were 70 cents higher at $42.42 a barrel at 2:29 p.m. EDT (1729 GMT) and U.S. West Texas Intermediate (WTI) crude futures gained 59 cents to $40.62.
Gold eased on Thursday on better-than-expected U.S. jobs data, with appeal of the metal further weighed down by a stronger dollar and doubts over a U.S. stimulus package before the presidential elections.
Spot gold fell 1.2% to $1,901.16 per ounce by 12:36 a.m. ET (1636 GMT), and U.S. gold futures slipped 1.4% to $1,902.80.
