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Europe Roundup: Euro rises on softer dollar, U.S. stimulus hopes, European stocks rise, Gold rises,Oil prices head for 10% weekly jump on North America, Norway outages-October 9th,2020

Market Roundup

•UK Index of Services 7.1%,-8.1% previous

•UK Aug Industrial Production (MoM)  0.3%,2.5% forecast, 5.2% previous

•UK Aug Industrial Production (YoY)  -6.4%,-4.6% forecast, -7.8% previous

•UK Aug Manufacturing Production (YoY)  -8.4%,-5.9% forecast, -9.4% previous

•UK Aug Manufacturing Production (MoM)  0.7%,3.0% forecast, 6.3% previous

•UK Monthly GDP 3M/3M Change 8.0%                , -7.6% previous

•UK Trade Aug Balance  -9.01B, -9.00B forecast, -8.64B previous

•UK Aug Trade Balance Non-EU  -2.31B, -2.80B forecast, -2.36B previous

•UK GDP (MoM) 2.1%,6.6% previous

•Italian Aug Industrial Production (MoM) 7.7%,1.3% forecast, 7.4% previous

•Italian Aug Industrial Production (YoY)  -0.3%, -6.6% forecast, -8.0% previous

• Greek Sep HICP (YoY)  -2.3% , -2.3% previous

Looking Ahead - Economic Data (GMT) 

•12:30 Canada Sep Full Employment Change  205.8K previous

•12:30 Canada Sep Part Time Employment Change 40.0K previous

•12:30 Canada Sep Unemployment Rate  9.7%   forecast, 10.2% previous

•12:30 Canada Sep Participation Rate 64.8% forecast, 64.6% previous

•12:30 Canada Sep Employment Change  156.6K forecast, 245.8K previous

•14:00 US Aug Wholesale Trade Sales (MoM)  2.0% forecast, 4.6% previous

•17:00 U.S. Baker Hughes Oil Rig Count  189 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fzbeat

EUR/USD: The euro strengthened against dollar on Friday as renewed hopes for a U.S. stimulus package lifted sentiment in the market. Euro rallied after U.S. President Donald Trump said on Thursday talks with Congress had restarted on targeted fiscal relief, after he had called off negotiations earlier this week.Investors are also starting to bet that Joe Biden, Trump’s challenger in the Nov. 3 presidential election, will win, potentially leading to a bigger stimulus package. Immediate resistance can be seen at 1.1808(50%fib), an upside break can trigger rise towards 1.1869 (Sep 18th high).On the downside, immediate support is seen at 1.1747 (9DMA), a break below could take the pair towards  1.1720 (38.2% fib).

GBP/USD: Sterling gained against dollar on Friday, brushing off worse than expected UK growth data as investors became more optimistic about a Brexit deal being reached ahead of a key European Council summit next week. Britain’s GDP rose 2.1% in August the slowest increase since the economy began to recover in May from its record slump. Much of what growth occurred was down to the government’s one-off restaurant subsidy scheme. The pound has been volatile this week on contradictory headlines about how much progress has been made in Brexit negotiations. Both sides have said a deal is still possible. Immediate resistance can be seen at 1.2966 (50%fib), an upside break can trigger rise towards 1.3017 (Higher BB).On the downside, immediate support is seen at 1.2909(9 DMA), a break below could take the pair towards 1.2823 (38.2 % fib).

USD/CHF: The dollar declined against the Swiss franc on Friday   as expectations grew that Joe Biden would win the U.S. presidency and offer fiscal stimulus after the elections. Rising expectations of a Biden victory has had a calming effect on market volatility and boosted appetite for currencies that have been hurt by the trade war between Washington and Beijing. The dollar eased 0.3% against a basket of currencies at 93.30 and it is down 0.8% for the week. It fell by a similar margin last week. The dollar reached a two month-high at 94.75 in late September. At 12:00 GMT, the dollar was 0.10 percent higher versus the Swiss franc at 0.9180. Immediate resistance can be seen at 0.9148 (38.2% fib), an upside break can trigger rise towards 0.9177 (9 DMA).On the downside, immediate support is seen at 0.9117 (Daily low), a break below could take the pair towards 0.9090 (23.6%fib).

USD/JPY: The dollar edged lower against the Japanese yen on Friday as investors increased bets that Joe Biden would win the U.S. presidential election on Nov. 3 and offer fiscal stimulus afterwards. A widening lead for Democratic Presidential candidate Joe Biden is seen as reducing the risk of a contested election and opening the way for a big economic stimulus, helping to counter investors’ wariness about a Democrat pledge to hike corporate tax rates. Strong resistance can be seen at 106.20 (Higher BB), an upside break can trigger rise towards 106.67 (50% fib).On the downside, immediate support is seen at 105.83 (38.2%fib), a break below could take the pair towards 105.60 (11 DMA).

Equities Recap

European stock markets gained on Friday on rosy earnings forecasts from retailers Pandora and Zalando as well as drugmaker Novo Nordisk, with investors keeping an eye out for signs of fresh U.S. stimulus.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.88 percent, Germany's Dax was up  by 0.12 percent, France’s CAC finished was up by 0.56 percent.

Commodities Recap

Gold rose by more than 1% on Friday and was on course for a second straight weekly gain as the dollar weakened and renewed negotiations for U.S. stimulus prompted investors to buy bullion as a hedge against inflation.

Spot gold was up 1.2% to $1,915.36 per ounce by 1135 GMT, up 0.9% this week. U.S. gold futures gained 1.4% to $1,921.30.

Oil prices fell on Friday, erasing earlier gains but still leaving both benchmarks on track for their biggest weekly gains since early June on the back of supply cuts caused by a storm in the Gulf of Mexico and a strike of offshore workers in Norway.

Brent  was down 27 cents at $43.07 a barrel by 0908 GMT. U.S. West Texas Intermediate (WTI) crude   fell 28 cents to $40.91.

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