Market Roundup
• UK Unemployment Rate 4.5%, 4.3% forecast, 4.1% previous
•German Sep HICP (YoY) -0.4%,-0.4% forecast, -0.1% previous
•German Sep HICP (MoM) -0.4%, -0.4% forecast, -0.2% previous
•German Sep CPI (YoY) -0.2%, -0.2% forecast, 0.0% previous
•German Sep CPI (MoM ) -0.2%,-0.2% forecast, -0.1% previous
• UK Aug Employment Change 3M/3M (MoM) -153k, -30Kforecast, -12K previous
• UK Sep Claimant Count Change 28.0K, 78.8K forecast, 73.7K previous
• UK Aug Average Earnings Index +Bonus 0.0%,-0.6% forecast, -1.0% previous
• UK Aug Average Earnings ex Bonus 0.8%,0.6% forecast, 0.2% previous
•EU Oct ZEW Economic Sentiment 52.3, 72.0 forecast, 73.9 previous
•German Oct ZEW Economic Sentiment 56.1, 73.0 forecast, 77.4 previous
•German Oct ZEW Current Conditions -59.5, -60.0 forecast, -66.2 previous
•US Sep NFIB Small Business Optimism 104.0, 100.2 previous
•US Sep Core CPI (MoM) 0.2%, 0.2% forecast,0.4% previous
•US CPI, Sep n.s.a (MoM) 0.14%, 0.32% previous
•US Sep Real Earnings (MoM) 0.2%, 0.3% previous
•US Sep CPI Index, s.a 260.21,259.68 previous
•US Sep CPI Index, n.s.a. 260.28 260.35, 259.92 previous
•US Sep CPI (MoM) 0.2%,0.2% forecast,0.4% previous
•US Sep CPI (YoY) 1.4%, 1.4%,1.3% previous
•US Sep Core CPI Index 269.26, 268.75 previous
•US Sep Core CPI (YoY) 1.7%,1.8% forecast, 1.7% previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 US Sep Cleveland CPI (MoM) 0.3% previous
•15:30 US 3-Month Bill Auction 0.095% previous
•15:30 US 6-Month Bill Auction 0.110% previous
•18:00 US Sep Federal Budget Balance -124.0B, -200.0B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday after data showed German ZEW investor sentiment fell more than expected in October. Investor sentiment in Germany fell by more than expected in October as a rise in coronavirus cases and the risk of no Brexit trade deal increased uncertainty about the outlook for Europe’s largest economy, the ZEW economic research institute said. The survey of investors’ economic sentiment fell to 56.1 from 77.4 points the previous month, ZEW said on Tuesday. Immediate resistance can be seen at 1.1196 (61.8% fib), an upside break can trigger rise towards 1.1235 (March 16th high).On the downside, immediate support is seen at 1.1106 (50 % fib), a break below could take the pair towards 1.1060 (38.2% fib).
GBP/USD: Sterling edged lower against the dollar on Tuesday, as investors singled out news out of Brexit negotiations as the sole driver of the currency’s future short-term direction. Recent reports have shown that the European Union wants more concessions from Britain before entering a last, intense phase of negotiations. The two chief negotiators, the EU’s Michel Barnier and Britain’s David Frost, say they are inching towards a deal, though they have underscored that important gaps remain on fishing, level playing field issues and governance. Immediate resistance can be seen at 1.2576 (61.8% fib), an upside break can trigger rise towards 1.2657 (200 DMA).On the downside, immediate support is seen at 1.2531 (5 DMA), a break below could take the pair towards 1.2389 (5 DMA).
USD/CHF: The dollar edged lower against the Swiss franc on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy. Markets are getting sceptical about the chances of having a bipartisan package before the election, a widening lead by Democratic presidential candidate Joe Biden over President Donald Trump is leading investors to expect big stimulus after the election. The Swiss franc traded at 0.9096 to the dollar, near its highest in three weeks. Immediate resistance can be seen at 0.9630 (38.2 % fib), an upside break can trigger rise towards 0.9661 (11DMA).On the downside, immediate support is seen at 0.9580 (Lower BB), a break below could take the pair towards 0.9542 (50% fib ).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as growing expectations former U.S. Vice President Joe Biden’s win in the Nov. 3 presidential election would bring large stimulus for the pandemic-hit economy, bolstered investor risk appetite for riskier assets. The dollar was 0.18 percent higher versus the Japanese yen at 105.51. Strong resistance can be seen at 107.90 (38.2% fib), an upside break can trigger rise towards 108.53 (Higher BB).On the downside, immediate support is seen at 107.25 (21 DMA), a break below could take the pair towards 106.91 (61.8% fib).
Equities Recap
European shares retreated from five-week highs on Tuesday as Johnson & Johnson’s move to pause its COVID-19 clinical trials raised doubts about the timeline of a vaccine, while Airbus slipped after JPMorgan downgraded its rating on the stock.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.43 percent, Germany's Dax was down by 1.12 percent, France’s CAC finished was down by 0.66 percent.
Commodities Recap
Gold steadied on Tuesday, buoyed by optimism a U.S. stimulus package would eventually be passed, bolstering the metal’s appeal as an inflation hedge although gains were capped by a firmer dollar.
Spot gold was steady at $1,921.21 per ounce by 0935 GMT. U.S. gold futures eased 0.1% to $1,926.90.
Oil prices rebounded on Tuesday, drawing support from robust China data although concerns about waning demand elsewhere and supply resumptions in Norway, the Gulf of Mexico and Libya weighed.
Brent crude futures rose 60 cents, or 1.4%, to $42.32 a barrel by 0916 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 63 cents, or 1.6%, to $40.06 a barrel.
