Market Roundup
• Finnish Oct Consumer Confidence -6.9,-5.9 previous
•French Sewp PPI (MoM) 0.2%,0.1% previous
•Spanish Unemployment Rate (Q3) 16.26%, 15.90% forecast, 15.33% previous
•EU Private Sector Loans (YoY) 3.1%,3.0% previous
•EU Sep Loans to Non Financial Corporations 7.1%,7.1% previous
•EU Sep M3 Money Supply (YoY) 10.4%, 9.6% forecast, 9.5% previous
•France Jobseekers Total 3,606.3K, 3,621.5K previous
•UK Oct CBI Distributive Trades Survey -23, 1 forecast,11 previous
•US Sep Core Durable Goods Orders (MoM) 0.8%,0.4% forecast,0.6% previous
•US Sep Durable Goods Orders (MoM) 1.9%, 0.5% forecast, 0.5% previous
•US Sep Durables Excluding Defense (MoM) 3.4%,0.9% previous
•US Sep Goods Orders Non Defense Ex Air (MoM) 1.0%, 0.5% forecast, 1.9% previous
Looking Ahead - Economic events and other releases (GMT)
•12:55 US Redbook (YoY) 2.5% previous
•12:55 US Redbook (MoM) 1.0% previous
•13:00 US Aug S&P/CS HPI Composite - 20 s.a. (MoM) 0.5% forecast, 0.6% previous
•13:00 US Aug S&P/CS HPI Composite - 20 n.s.a. (YoY) 4.2% forecast, 3.9% previous
•13:00 US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.5% forecast, 0.6% previous
•13:00 US Aug House Price Index 293.0 previous
•13:00 US Aug House Price Index (YoY) 6.5% previous
•14:00 US Oct Richmond Manufacturing Index 21 previous
•14:00 US Oct Richmond Manufacturing Shipments 13 previous
•14:00 US Oct Richmond Services Index 6 previous
•14:00 US Oct CB Consumer Confidence 102.0, 101.8 previous
•14:00 US Texas Services Sector Outlook 11.5 previous
•14:30 US Oct Dallas Fed Services Revenues 14.0 previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fx Beat
EUR/USD: The euro held ground against dollar on Tuesday as the continued rise in coronavirus cases and the lack of progress on U.S. stimulus kept investors cautious before Thursday’s European Central Bank meeting. At the ECB meeting, the bank is not expected to change its policy, but investors will watch for hints on how likely it is to add to its bond purchases in December. After initially falling, the euro was up 0.1% by 1230 GMT to $1.1828. Immediate resistance can be seen at 1.1835 (38.2%fib), an upside break can trigger rise towards 1.1872 (Higher BB).On the downside, immediate support is seen at 1.1789 (50%fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling edged higher against the dollar on Tuesday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks. On Monday, the EU’s chief negotiator, Michel Barnier, said he would be in London until Wednesday to negotiate a deal, after which talks will switch to Brussels. Apart from Brexit, Britain is grappling with a weak economy battered by the coronavirus. Negative interest rates have not been ruled out, another hurdle the currency can ill afford. Immediate resistance can be seen at 1.3091 (23.6%fib), an upside break can trigger rise towards 1.3195 (23.6%fib).On the downside, immediate support is seen at 1.3002 (50%fib), a break below could take the pair towards 1.2912 (61.8%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Tuesday as soaring global coronavirus cases and slow progress on a U.S. stimulus deal hammered investor sentiment. The United States has seen record COVID-19 infections, while in France authorities are looking at options for tighter lockdown measures as the virus has kept spreading despite some of the tightest restrictions in Europe.In Italy, there were protests against lockdown restrictions on Monday, with violence reported in Milan and Turin.A lack of progress towards U.S. fiscal stimulus also dampened sentiment. Immediate resistance can be seen at 0.9093 (14 DMA), an upside break can trigger rise towards 0.9129(50%fib).On the downside, immediate support is seen at 0.9044 (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 Tuesday, as investors sat on the sidelines ahead of next week’s U.S. election. Monday saw the steepest stock market sell-off in a month and a bond rally, but foreign exchange market activity has remained relatively muted, with price moves in early Tuesday limited. Investors were clearly cautious after the United States, Russia and France all hit new daily records for coronavirus infections. The yen, which investors tend to flock towards when nervous gained ground against dollar. Strong resistance can be seen at 104.73 (38.2% fib), an upside break can trigger rise towards 105.05 (50%fib).On the downside, immediate support is seen at 104.49 (Lower BB), a break below could take the pair towards 104.32 (23.6%fib).
Equities Recap
European stocks slipped on Tuesday after sharp declines in the previous session, as weakness in miners and automakers offset upbeat results from UK blue-chip companies HSBC and BP.
At (GMT 12:30),UK's benchmark FTSE 100 was last trading down at 0.08 percent, Germany's Dax was down by 0.22 percent, France’s CAC was last down by 0.77 percent.
Commodities Recap
Gold prices rose on Tuesday as a weaker dollar and a fresh wave of coronavirus infections threatened to further slow down a global economic recovery from the COVID-19 pandemic, bolstering bullion’s safe-haven appeal.
Spot gold was 0.1% higher at $1,903.16 per ounce by 0801 GMT.U.S. gold futures were steady at $1,906.50.
Oil rose on Tuesday towards $41 a barrel as oil companies shut down some U.S. Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.
Brent crude was up 41 cents, or 1%, at $40.87 per barrel by 1124 GMT. U.S. oil gained 38 cents, or 1%, to $38.94. Both contracts fell more than 3% on Monday.
