Market Roundup
•US Export Price Index (YoY) -1.8%, -2.8% previous
•US Sep Export Price Index (MoM) 0.6%,0.4% forecast, 0.5% previous
•US Import Price Index (YoY) -1.1%,-1.4% previous
•US Sep Import Price Index (MoM) 0.3%, 0.3%,0.9% previous
•US NY Empire State Manufacturing Index 10.50, 15.00, 17.00 previous
•US Oct Philadelphia Fed Manufacturing Index 32.3, 14.0 forecast , 15.0 previous
•US Oct Philly Fed Business Conditions 62.7, 56.6 previous
•US Oct Philly Fed CAPEX Index 36.50, 31.00 previous
•US Philly Fed Employment 12.7,15.7 previous
•Canada ADP Nonfarm Employment Change -240.8K,-205.4K previous
•US Oct Philly Fed Prices Paid 28.50, 25.10 previous
•US Oct Philly Fed New Orders 42.6, 25.5 previous
•US Continuing Jobless Claims 10,018K, 10,700K forecast, 10,976K previous
•US Initial Jobless Claims 898K, 825K forecast, 840K previous
•US Jobless Claims 4-Week Avg 866.25K, 857.00K previous
•Russia Central Bank reserves (USD) 585.8B previous
•US Crude Oil Inventories-3.818M, -2.835M forecast, 0.501M previous
Looking Ahead Economic Data
•21:30 New Zealand Sep Business NZ PMI 50.7 previous
•23:30 Japan Sep CPI, n.s.a (MoM) 0.2% previous
•23:30 Japan Sep National Core CPI (YoY) -0.4% forecast, -0.4% previous
•23:30 Japan Sep National CPI (YoY) 0.2% previous
•02:00 New Zealand Sep RBNZ Offshore Holdings 41.90% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events ahead
Currencies Summaries
EUR/USD: The euro declined against dollar on Thursday as fading U.S. stimulus hopes benefitted dollar. U.S. Treasury Secretary Steve Mnuchin dimmed hopes for a new fiscal stimulus package before the Nov. 3 presidential election. Mnuchin said he and Democratic lawmakers were "far apart" on terms for a coronavirus economic relief package, and that a deal would be hard to reach before the election, souring risk sentiment and pushing investors to seek safety in the dollar. Immediate resistance can be seen at 1.1730 (5DMA), an upside break can trigger rise towards 1.1768 (5DMA).On the downside, immediate support is seen at 1.1690(daily low), a break below could take the pair towards 1.1600 (Psychological level).
GBP/USD: Sterling weakened sharply on Thursday, sent lower by concerns about the obstacles keeping the European Union and Britain from reaching a Brexit trade deal, and a broadly stronger dollar added to the pound’s woes. The currency had risen in recent sessions, propelled by a sense that Britain and the EU, whose leaders are meeting on Thursday, will secure a trade deal before the end of December, when Britain’s transition period after leaving the EU runs out.But sterling remains five cents off a 2020 high of nearly $1.35 hit in early September. Many investors reckon that even if a deal is reached with Brussels, it will be of limited scope.Immediate resistance can be seen at 1.3027 (38.2% fib), an upside break can trigger rise towards 1.3083 (Higher BB).On the downside, immediate support is seen at 1.2900 (23.6%fib), a break below could take the pair towards 1.2883(21DMA).
USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as investors were worried that tightening restrictions to combat a second wave of the coronavirus pandemic would slow global economic recovery. U.S. crude oil futures dropped 3.7% to $39.51 a barrel, while the Canadian dollar was trading 0.6% lower at 1.3224 to the greenback .The currency touched its weakest intraday level since last Thursday at 1.3241. Domestic economic data was mixed. Canadian home sales rose 0.9% in September from August, raising them to another new all-time monthly record, the Canadian Real Estate Association said. Separate data, from payroll services provider ADP, showed that Canada lost 240,800 jobs in September. Immediate resistance can be seen at 1.3228 (38.2%fib), an upside break can trigger rise towards 1.3258 (Daily hgh).On the downside, immediate support is seen at 1.3168(5DMA), a break below could take the pair towards 1.3129 (23.6%fib).
USD/JPY: The dollar gained against the Japanese yen Thursday as investors shied from risk and sought safe-havens such as the U.S. dollar on fears that a resurgence in coronavirus cases and a lack of more U.S. fiscal stimulus would hobble the world economy. An unexpected rise in U.S. weekly jobless claims figures added to worries that the U.S. economy may sputter if government does not act soon to shore up growth, especially in the face of a spike in COVID-19 cases in Europe. Strong resistance can be seen at 105.36 (5 DMA), an upside break can trigger rise towards 105.82 (38.2%fib).On the downside, immediate support is seen at 105.10 (23.6% fib), a break below could take the pair towards 104.91 (Oct 2nd low).
Equities Recap
European shares hit two-week lows on Thursday, knocked by tougher curbs in London and Paris to fight a second wave of the COVID-19 pandemic, with no breakthrough in Brexit trade talks also a dampener.
UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 2.49 percent, France’s CAC finished the day up by 2.11 percent.
The S&P 500 ended lower on Thursday after a rise in weekly jobless claims compounded worries about a stalling economic recovery and fading hopes for more fiscal aid before the election.
Dow Jones closed down by 0.07 percent, S&P 500 was last down by 0.15 percent, Nasdaq was down by 0.47 % percent.
Commodities Recap
Gold prices edged up on Thursday after U.S. President Donald Trump reignited hopes of a coronavirus stimulus package before the Nov. 3 elections, but a strong dollar kept the metal's gains in check.
Spot gold rose 0.3% at $1,906.15 per ounce by 1:46 p.m. EDT (1746 GMT). U.S. gold futures settled up 0.1% at $1,908.90.
