Market Roundup
•German Sep WPI (YoY) -1.8%,-2.2% previous
•German Sep WPI (MoM) 0.0% , -0.4% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Aug Trade Balance 6.90B forecast,4.25B previous
•13:00 French 12-Month BTF Auction -0.611% previous
•13:00 French 3-Month BTF Auction -0.636% previous
•13:00 French 6-Month BTF Auction -0.609% previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 UK MPC Member Haskel Speaks
•15:00 ECB's De Guindos Speaks
•16:00 UK BoE Gov Bailey Speaks
•16:45 ECB's Panetta Speaks
Fzbeat
EUR/USD: The euro edged lower against dollar on Monday as worries about rising COVID-19 cases in Europe and the United States weighed on euro. European countries were considering adding fresh travel curbs due to rising coronavirus, a contrast to Asia-Pacific countries including Singapore, Australia and Japan, where a gradual easing of some international travel restrictions is under way. Still, U.S. and European markets were trading higher as investors hoped for coronavirus aid in the United States, with the Trump administration on Sunday calling on Congress to pass a stripped-down relief bill. European stocks and U.S. stock futures rose 0.5%. FTSE 100 and sterling meanwhile were wobbly ahead of a Brexit summit later in the week. Immediate resistance can be seen at 1.1820 (50%fib), an upside break can trigger rise towards 1.1884 (50%fib).On the downside, immediate support is seen at 1.1777 (5DMA), a break below could take the pair towards 1.1745 (23.6% fib).
GBP/USD: Sterling edged lower against the dollar on Monday with British Prime Minister Boris Johnson expected to announce new restrictions as the COVID-19 outbreak accelerates, but hopes for a Brexit deal kept the currency above the key $1.30 level. Johnson will hold a meeting of the government’s emergency COBRA committee and then address parliament. His three-tiered local lockdowns will include shutting bars, gyms, casinos and bookmakers in some areas placed onto the very high alert level, probably across the north of England. Sterling was down 0.2% at $1.3030 at 1230 GMT, not far from the one-month high it touched on Friday. Immediate resistance can be seen at 1.3063 (50%fib), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2941 (38.2%fib), a break below could take the pair towards 1.2876 (20DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday amid optimism about fiscal stimulus in the United States. The Trump administration called on Congress to pass a stripped-down version of the relief bill on Sunday, while negotiations on a broader package continue. The dollar has been buffeted by the on-again, off-again stimulus negotiations. Still, with Nov. 3 election only weeks away, investors are betting that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package. At 12:30 GMT, the dollar was 0.10 percent higher versus the Swiss franc at 0.9180. Immediate resistance can be seen at 0.9125 (Daily high), an upside break can trigger rise towards 0.9151 (38.2%fib).On the downside, immediate support is seen at 0.9088 (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 weak U.S. data and overall uncertainty about the economic outlook weighed on greenback. U.S. jobless claims remained elevated at 860,000, while both housing starts and the Philadelphia Fed business index fell. The dollar fell 0.3% against the yen to 104.69 yen, after sliding to a seven-week low of 104.52. The U.S. dollar index was steady, having seen its biggest loss in six weeks on Friday, when investors upped their bets that a fiscal stimulus package would be agreed to mitigate the economic fallout from COVID-19. Strong resistance can be seen at 105.82 (38.2% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.34 (20DMA), a break below could take the pair towards 105.10(23.6% fib).
Equities Recap
London stocks were subdued on Monday as a dip in oil prices hit energy stocks, while investors remained cautious with Prime Minister Boris Johnson expected to set out new measures to try to contain the growing coronavirus crisis.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.02 percent, Germany's Dax was up by 0.56 percent, France’s CAC finished was up by 0.72 percent.
Commodities Recap
Gold slipped from a three-week peak on Monday as the dollar recovered some ground, but the prospect of more U.S. coronavirus relief spending and uncertainty surrounding next month’s presidential election put a floor under prices.
Spot gold was down 0.2% at $1,925.56 per ounce at 1213 GMT, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session.U.S. gold futures edged up 0.2% to $1,931.50.
Oil prices fell on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.
Brent crude fell 52 cents, or 1.2%, to $42.33 a barrel by 1052 GMT and U.S. West Texas Intermediate was down 58 cents, or 1.4%, at $40.02.
