Market Roundup
•Spanish Trade Balance -1.74B, -0.31B previous
•EU Aug Construction Output (MoM) 2.57%,0.30% previous
•Portuguese Aug Current Account -2.268B, -2.928B previous
Looking Ahead - Economic Data (GMT)
•12:30Canada Wholesale Aug Sales (MoM) 0.3%forecast, 4.3% previous
•13:00 French 6-Month BTF Auction -0.637% previous
•13:00 French 3-Month BTF Auction -0.656% previous
•14:00 US Oct NAHB Housing Market Index 83, 83 previous
•15:00 US 3-Month Bill Auction 0.105% previous
•15:00 US 6-Month Bill Auction 0.115% previous
Looking Ahead - Economic events and other releases (GMT)
•12:40 ECB's Lane Speaks
•12:45 ECB President Lagarde Speaks
•13:00 US FOMC Member Williams Speaks
•14:05 UK BoE MPC Member Cunliffe Speaks
•15:00 UK BoE MPC Member Cunliffe Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday on Monday before a series of speeches from European Central Bank policymakers, with investors looking for clues on monetary policy easing before the end of the year.ECB President Christine Lagarde is due to speak at the 16th Congress of the French Regions at 12.40 GMT, and is one of four ECB board members scheduled to speak on Monday. With a second wave of COVID-19 infections sweeping Europe and new restrictions introduced by a number of governments, bets are that the region’s top policymakers will strike a dovish note. Immediate resistance can be seen at 1.1802 (23.6%fib), an upside break can trigger rise towards 1.1828 (38.2%fib).On the downside, immediate support is seen at 1.1766 (38.2% fib), a break below could take the pair towards 1.1734 (50%fib).
GBP/USD: The British pound extended gains and climbed above $1.30 on Monday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks.Britain said the door was still open if the European Union wanted to make some small concessions, but that unless the bloc budged there would be a no-deal exit in 10 weeks.EU and UK Brexit negotiators, Michel Barnier and David Frost, will discuss continuing trade talks over the phone around 1300 GMT on Monday after British Prime Minister Boris Johnson said there was no point in continuing talks. Immediate resistance can be seen at 1.3025 (Daily high), an upside break can trigger rise towards 1.3077 (50%fib).On the downside, immediate support is seen at 1.2973 (38.2%fib), a break below could take the pair towards 1.2859(23.6%fib).
USD/CHF: The dollar declined against the Swiss franc on Monday concern about rising coronavirus cases, the looming U.S. election and fading prospects of any fiscal stimulus before the election. Investors focused on what the U.S. election outcome means for fiscal stimulus later. Fifteen days out from Election Day, Biden leads Trump by about 10 points in national polls. An index tracking the greenback against a basket of currencies was last down 0.3% at 93.40, close to the top of the last three months' trading range. Immediate resistance can be seen at 0.9110 (38.2 % fib), an upside break can trigger rise towards 0.9144 (50%fib).On the downside, immediate support is seen at 0.9065 (23.6%fib), a break below could take the pair towards 0.9000(Psychological level ).
USD/JPY: The dollar declined against the Japanese yen on Monday as COVID-19 vaccine delay and fading hopes for any US fiscal stimulus before the election put the dollar under pressure. Markets are grappling with angst about vaccine/antibody delays, angst about rising covid cases across the globe and stalled U.S. fiscal talks. Global coronavirus cases rose by more than 400,000 for the first time late on Friday, a record one-day increase as much of Europe enacts new restrictions to curb the outbreak. Strong resistance can be seen at 105.51 (50%fib), an upside break can trigger rise towards 105.82 (61.8%fib).On the downside, immediate support is seen at 105.13 (38.2%fb), a break below could take the pair towards 104.99 (Lower BB).
Equities Recap
European stocks rose on Monday as strong earnings updates from Swiss wealth manager Julius Baer and Dutch firm Philips overshadowed worries about fresh coronavirus restrictions across the continent.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading down at 0.27 percent, Germany's Dax was down by 0.17 percent, France’s CAC finished was up by 0.20 percent.
Commodities Recap
Gold prices rose on Monday underpinned by concerns of a worsening COVID-19 pandemic, while hopes for a new U.S. stimulus package before the November presidential election also supported prices of the precious metal.
Spot gold gained 0.6% to $1,909.90 per ounce by 0725 GMT, while U.S. gold futures were up 0.3% at $1,912.40.
Oil prices fell on Monday as concerns over surging coronavirus cases globally dampened prospects for a demand recovery, while Libya planned to boost output further as the OPEC member tries to revive its energy industry after months of blockade.
Brent crude for December was down 30 cents, or 0.7%, to $42.63 a barrel at 1017 GMT. U.S. West Texas Intermediate crude for November was down 28 cents, or 0.7%, at $40.60. The contract will expire on Tuesday.
