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America’s Roundup: Dollar retreats post U.S. jobs data, ECB decision ,Wall Street ends lower,Gold gains, Oil prices slide near 2% after surprise U.S. crude stock build-September 11th,2020

Market Roundup

• US Continuing Jobless Claims 13,385K, 12,925K forecast, 13,254K previous

• US Jobless Claims 4-Week Avg  970.75K, 991.75K previous

• US Initial Jobless Claims 884K, 846K forecast, 881K previous

• US Aug Core PPI (YoY)  0.6%,0.3% forecast, 0.3% previous

• US Aug Core PPI (MoM)  0.4%,0.2% forecast, 0.5% previous

• US Aug PPI (MoM)  0.3%, 0.2% forecast, 0.6% previous

• US Aug PPI (YoY)  0.2%,-0.3% forecast, -0.4% previous

• Russia Central Bank reserves (USD) 591.7B, 591.8B previous

• US Jul Wholesale Trade Sales (MoM ) 4.6%, 2.8% forecast,8.8% previous

• US Wholesale Inventories (MoM) -0.3%,-0.1% forecast, -1.4% previous

• US Natural Gas Storage 70B, 68B forecast, 35B previous

• US Crude Oil Inventories 0.581M,-1.335M forecast, -9.362M previous

Looking Ahead - Economic Data (GMT)

•22:30 New Zealand Aug Business NZ PMI  58.8 previous

•22:30 New Zealand 22:30 New Zeand Aug FPI (MoM)  1.2% previous

•23:50 Japan BSI Large Manufacturing Conditions (Q3) -52.3 previous

•23:50 Japan Aug PPI (YoY)  -0.5% forecast, -0.9% previous

•23:50 Japan Aug PPI (MoM) 0.2% forecast, 0.6% previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currencies Summaries

EUR/USD: The euro rose to a one-week high against the dollar on Thursday, after European Central Bank President Christine Lagarde said that while the ECB is watching the exchange rate, it is not a monetary policy tool. Her comment suggested the ECB was unlikely to undertake measures to weaken the euro despite its recent gains, giving traders motivation to take the single euro zone currency higher. The euro rose as high as $1.1917, a one-week peak, and was last up 0.2% at $1.1825. Immediate resistance can be seen at 1.1891 (61.8% fib), an upside break can trigger rise towards 1.1938 (Higher BB).On the downside, immediate support is seen at 1.1812 (50% fib), a break below could take the pair towards 1.1760 (Lower BB ).

GBP/USD:  The British pound fell 1.7% to hit a more than five-month low against a rising euro on Thursday, weighed down by fears that the UK-EU trade negotiations may fall apart.After an emergency meeting on Thursday to discuss Britain’s attempt to pass a bill which would overwrite the Brexit Withdrawal Agreement, EU executives said the trust between Brussels and London have been “seriously damaged”. Sterling fell 1.1% versus the U.S. dollar to as low as $1.2856, its weakest since July 28.Immediate resistance can be seen at 1.3051 (50% fib), an upside break can trigger rise towards 1.3070 (5DMA).On the downside, immediate support is seen at 1.2922 (Lower BB), a break below could take the pair towards 1.2831 (23.6% fib).

USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Thursday as oil prices fell, with the loonie steadying ahead of a speech by Bank of Canada Governor Tiff Macklem.  The price of oil, one of Canada's major exports, was lower after data showed U.S. crude stockpiles rose last week and the U.S. Energy Information Administration reduced its demand outlook. U.S. crude prices were down 2% at $37.28 a barrel. The Canadian dollar was trading nearly unchanged at 1.3139 to the greenback. The currency, which hit on Wednesday a three-week low at 1.3259, traded in a range of 1.3120 to 1.3197.Immediate resistance can be seen at 1.3216 (50%fib), an upside break can trigger rise towards 1.3258 (Higher BB).On the downside, immediate support is seen at 1.3171(5DMA ), a break below could take the pair towards 1.3110 (38.2% fib)

USD/JPY: The dollar edged higher against the Japanese yen on Thursday as the dollar regained some lost ground, although doubts over a swift global economic recovery kept gains in check. The number of Americans filing new claims for unemployment benefits hovered at high levels last week, suggesting the labor market recovery from the COVID-19 pandemic was stalling.Investors now await British GDP data and U.S. inflation numbers due later in the day for further clarity on the progress of the global recovery from a coronavirus-induced economic slump. Strong resistance can be seen at 106.54 (50 DMA), an upside break can trigger rise towards 106.67 (Higher BB).On the downside, immediate support is seen at 106.92 (Daily low), a break below could take the pair towards 105.54  (38.2%fib).

 Equities Recap

Major European bourses closed lower on Thursday after the European Central Bank kept its policy rates unchanged and said its existing stimulus measures were sufficient and likely to be used in full.

The UK's benchmark FTSE 100 closed down by 0.16 percent, Germany's Dax ended down  by 0.26 percent, and France’s CAC finished the day down by 0.38 percent.

U.S. stocks closed lower after a choppy trading session on Thursday as heavyweight tech-related stocks resumed their decline following a sharp rebound the previous session, while elevated jobless claims reminded investors of a still-difficult recovery ahead.

Dow Jones closed down at 1.45 percent, S&P 500 ended down  1.76 percent, Nasdaq finished the day down by 1.99 percent.

Treasury Recap

U.S. Treasury yields fell on Thursday and the yield curve flattened after the government sold $23 billion in 30-year bonds to solid demand, the final sale of $108 billion in new coupon-bearing supply this week.

Thirty-year bond yields were last 1.433%, after getting as high as 1.493% before the auction. Benchmark 10-year note yields fell two basis points on the day to 0.684%.

Commodities Recap

Gold rose to its highest level on over week on Thursday, as the dollar retreated on weaker-than-expected U.S. jobless claims data.

Spot gold rose 0.8% to $1,961.66 per ounce by 1347 GMT, after hitting its highest since Sept. 2 at $1,963.33.U.S. gold futures were up 0.66 % at $1,967.70.

Oil prices slid nearly 2% on Thursday after U.S. data showed a surprise build in crude stockpiles last week related in part to ongoing reductions at refineries along the Gulf of Mexico following Hurricane Laura.

Brent futures   fell 73 cents, or 1.8%, to settle at $40.06 a barrel, while U.S. West Texas Intermediate (WTI) crude  fell 75 cents, or 2.0%, to settle at $37.30.

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