News

Europe Roundup: Euro dips as eurozone Sept business growth halts ,European stocks gain,Gold hits six-week trough, Oil edges up to $42, eyeing Libya and U.S. inventories-September 23rd,2020

Market Roundup

•German GfK German Consumer Climate -1.6, -1.0 forecast, -1.8 previous

•Spanish GDP (YoY) (Q2) -21.5%,-22.1% forecast, -22.1% previous

•Spanish GDP (QoQ) (Q2) -17.8%,-18.5% forecast, -18.5% previous

•French Sep Services PMI 47.5, 51.5 forecast, 51.5 previous

•French Markit Composite PMI 48.5, 51.9 forecast, 51.6 previous

•French SepManufacturing PMI 50.9 , 50.5 forecast, 49.8 previous

•German Sep Manufacturing PMI 56.6, 52.5 forecast, 52.2 previous

•German Sep Services PMI 49.1, 53.0 forecast, 52.5 previous

•German Sep Composite PMI 53.7, 54.1 forecast, 54.4 previous

•German Sep Markit Composite PMI 50.1, 51.7 forecast, 51.9 previous

•EU Sep Services PMI 47.6, 50.5 forecast, 50.5 previous

•EU Sep Manufacturing PMI 53.7, 51.9 forecast, 51.7 previous

•UK Composite PMI 55.7, 56.3 forecast, 59.1 previous

•UK Services PMI 55.1, 56.0 forecast, 58.8 previous

•UK Manufacturing PMI 54.3, 54.1 forecast, 55.2 previous

•US Mortgage Refinance Index 3,579.8, 3,289.4 previous

•US Mortgage Market Index 808.5, 757.2 previous

•US MBA Purchase Index 327.0 , 316.2 previous

• US Jul House Price Index 293.0, 289.9 previous

• US Jul House Price Index (MoM) 1.0%, 0.9% previous

• US Jul House Price Index (YoY) 6.5% ,5.7% previous

Looking Ahead – Economic Data (GMT)

•13:30 Brazil Federal Tax Revenue 110.20B forecast, 115.90B previous

•13:30 US Sep Manufacturing PMI 53.1 forecast, 53.1 previous

•13:45 US Sep Services PMI 54.7 forecast, 55.0 previous

•13:45 US Sep Markit Composite PMI 54.6 previous

Looking Ahead – Events, Other Releases (GMT)

• 13:00 US FOMC Member Mester Speaks

•14:00 US Fed Chair Powell Testifies

•15:00 US Chicago Fed President Evans Speaks

•16:00 US FOMC Member Rosengren Speaks

•18:00 US FOMC Member Quarles Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Wednesday as data showed resurgence in coronavirus infections slammed the Euro zone services industry into reverse. IHS Markit’s flash Purchasing Managers’ Index sank to 50.1 in September from August’s 51.9, only just above the 50 mark separating growth from contraction and well below the median forecast for a modest dip to 51.7. The flash PMI for the euro zone service industry plummeted to 47.6 from 50.5, significantly below the breakeven mark and falling short of even the most pessimistic forecast that had predicted a reading of 50.5.Immediate resistance can be seen at 1.1774 (5 DMA), an upside break can trigger rise towards 1.1803 (5DMA).On the downside, immediate support is seen at 1.1737 (38.2% fib), a break below could take the pair towards 1.1640 (23.6%fib).

GBP/USD: The pound extended its fall against the dollar on Wednesday after new long-lasting coronavirus restrictions in Britain were announced. Prime Minister Boris Johnson ordered restaurants and bars to close early and told British people to work from home where possible, in new measures which he said could last for six months. The pound fell on the news, dipping below its 200-day moving average overnight, with losses compounded by a bounce back in the dollar, which has seen cable fall for three days straight. At 1230 GMT, sterling was at a 2-month low of $1.2733, down 0.3%. It has lost 5% so far in September, making this the pound’s worst month since 2016.Immediate resistance can be seen at 1.2758 (Daily high), an upside break can trigger rise towards 1.2827 (38.2%fib).On the downside, immediate support is seen at 1.2668 (23.6%fib), a break below could take the pair towards 1.2589 (Lower BB).

USD/CHF: The dollar gained against Swiss franc on Wednesday as investors sought safety in dollar as they eyed new restrictions aimed at curbing surging coronavirus cases in Europe, the latest U.S.-China tensions and Washington’s lack of progress on reaching a fiscal stimulus agreement. The dollar is likely to continue to gain as the coronavirus rattles sentiment in Europe, but uncertainty about this year’s U.S. presidential election means it could be prone to more volatile swings. The dollar index , which measures the dollar against a basket of six major currencies, rose to a high of 94.25, the highest in two months, then limited its gains to around 94.Immediate resistance can be seen at 0.9216 (38.2% fib), an upside break can trigger rise towards 0.9258 (23.6%fib).On the downside, immediate support is seen at 0.9183 (50% fib), a break below could take the pair towards 0.9153 (61.8%fib).

USD/JPY: The dollar rose against the Japanese yen on Wednesday after data showed U.S. home sales surged to their highest level in nearly 14 years in August. U.S. home sales surged in August as the housing market continued to outperform the overall economy, but record high home prices could squeeze first-time buyers out of the market. The report from the National Association of Realtors confirmed home sales had recovered after slumping when the economy almost ground to a halt as businesses were shuttered in mid-March in an effort to slow the spread of COVID-19. Existing home sales increased 2.4% to a seasonally adjusted annual rate of 6 million units last month, the highest level since December 2006. Strong resistance can be seen at 105.30 (11 DMA), an upside break can trigger rise towards 105.49 (38.2%fib).On the downside, immediate support is seen at 104.81 (5DMA ), a break below could take the pair towards 104.44(23.6% fib).

Equities Recap

European stocks extended a rebound on Wednesday from a steep selloff earlier this week, with investors awaiting the latest business activity data to see if the economic recovery is stalling as many countries reimpose coronavirus restrictions.

At (GMT 13:30 ),UK’s benchmark FTSE 100 was last trading up at 2.05 percent, Germany’s Dax was up by 1.15 percent, France’s CAC was last up by 1.33 percent.

Gold dropped to a six-week low on Wednesday as the dollar held onto its recent rally, while a lack of additional stimulus to aid the recovery of the coronavirus-battered global economy further weighed on sentiment.

Spot gold fell 0.8% to $1,884.51 per ounce by 1157 GMT, after earlier dropping 1.4% to touch its lowest since Aug. 12 at $1,873.01. U.S. gold futures were down 0.9% to $1,891.30 per ounce.

Oil edged up to around $42 a barrel on Wednesday supported by rising investor risk appetite and a report that U.S. fuel inventories fell, although rising crude supply and concern of stalling demand capped gains.

Brent crude was up 8 cents, or 0.2%, at $41.80 at 1155 GMT, reversing an earlier drop. U.S. West Texas Intermediate crude was up 9 cents at $39.89. Both contracts fell more than 4% on Monday, though they rose on Tuesday.


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