America’s Roundup: Dollar ends losing week lower on election and COVID aid concerns, Wall Street subdued, Gold slips, Oil falls about 2% on Libyan output, COVID-19 demand concerns-October 24th,2020

Market Roundup

• Belgium Oct NBB Business Climate-8.5 , -11.5 forecast, -10.8 previous

• Brazil Aug Federal Tax Revenue 119.80B, 118.50B forecast, 118.50B previous

• US Oct Services PMI 56.0, 54.6 forecast, 54.6 previous

• US Oct Manufacturing PMI 53.3, 53.4 forecast, 53.2 previous

• US Oct Markit Composite PMI 55.5, 54.3 previous

Looking Ahead – Economic Data (GMT)

No significant data

Looking Ahead – Economic events and other releases (GMT)

No significant events

Currencies Summaries

EUR/USD: The euro strengthened against dollar on Friday after Germany’s PMI survey showed that its manufacturing sector rebounded strongly. German private sector activity grew for the fourth month running in October. Manufacturing proved robust, with the flash PMI rising to 58.0, its highest level since April 2018. The service sector contracted, however, with the flash PMI dipping to 48.9. The euro was up 0.32 % against the dollar at $1.1847.Immediate resistance can be seen at 1.1866 (Higher BB), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1832 (38.2% fib), a break below could take the pair towards 1.1784(Daily low).

GBP/USD: The pound fell against the dollar on Friday after the UK Purchasing Managers’ Index (PMI) fell to a four-month low, but was still set to end the week up, after a new phase of intense Brexit talks restarted. The pound gave up some recent gains after an early flash PMI reading – a gauge of private sector growth – fell to a four month low of 52.9 in October from 56.5 in September. Britain’s economic recovery from the COVID-19 shock was already beginning to falter in August. Since then, new cases have risen rapidly, raising concerns that a second wave, combined with a possible no-deal Brexit, pose a double-whammy of downside risks. Immediate resistance can be seen at 1.3092 (38.2%fib) upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3020 (50%fib), a break below could take the pair towards 1.3000(Psychological level).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday, as investors welcomed signs of progress on a U.S. coronavirus relief package and some domestic economic indicators were estimated to have climbed in September. Canadian manufacturing sales last month most likely rose by 1.5% after falling 2.0% in August, Statistics Canada said in a flash estimate. A separate flash estimate showed wholesale sales increasing by 0.4% after rising 0.3% in August. Immediate resistance can be seen at 1.3153 (9DMA), an upside break can trigger rise towards 1.3194 (38.2% fib).On the downside, immediate support is seen at 1.3105 (23.6%fib), a break below could take the pair towards 1.3036(Lower BB).

USD/JPY: USD/JPY: The dollar declined against the Japanese yen on Friday as uncertainty over a new round of stimulus ahead of the upcoming U.S. elections, weighed on greenback. U.S. House of Representatives Speaker Nancy Pelosi said another round of COVID-19 aid was still was possible before the Nov. 3 elections, but that President Donald Trump would have to get reluctant Republicans on board if he wants a deal. Trump and Treasury Secretary Steven Mnuchin countered that Pelosi must compromise to get an aid package, saying significant differences remained between the Republican administration and Democrats. The market is pricing for Biden victory and a stimulus package by the end of the year. Strong resistance can be seen at 105.05(50%fib), an upside break can trigger rise towards 105.17 (50%fib).On the downside, immediate support is seen at 104.34 (23.6%fib), a break below could take the pair towards 103.97 (Sep 21st low).

Equities Recap

European stocks rose on Friday, boosted by positive earnings updates from Barclays and a surge in Airbus, but nagging worries about the economic impact of surging COVID-19 cases saw markets post their biggest weekly decline in a month.

UK’s benchmark FTSE 100 closed up by 1.29percent, Germany’s Dax ended up by 0.82 percent, France’s CAC finished the day up by 1.20 percent.

Wall Street’s main indexes struggled for direction on Friday as investors fretted over an impasse in Washington on the new coronavirus aid bill, while turning cautious ahead of the Nov. 3 presidential election.

Dow Jones closed down by 0.10 percent, S&P 500 ended up by 0.34 percent, Nasdaq settled down by 0.37 % percent.

Treasuries Recap

Benchmark U.S. Treasury yields retraced from four-month highs reached earlier in the day on Friday as investors waited to learn whether U.S. lawmakers will strike a deal on new fiscal stimulus.

Benchmark 10-year Treasury yields rose as high as 0.872%, the highest since June 9, before falling back to 0.841%. The yields are edging above their 200-day daily moving average, which they have held under since December 2018.

Commodities Recap

Gold eased on Friday as the dollar recouped some losses, but uncertainty going into the Nov. 3 U.S. elections limited bullion’s losses.

Spot gold fell 0.1% to $1,903.07 per ounce by 2:06 p.m. EDT (1806 GMT). U.S. gold futures settled unchanged at $1,905.20.

Oil fell nearly 2% on Friday, finishing lower for the week, in anticipation of a surge in Libyan crude supply and demand concerns caused by surging coronavirus cases in the United States and Europe.

U.S. crude settled at $39.85 a barrel, falling 79 cents, or 1.9%. Brent crude settled at $41.77 a barrel, losing 69 cents, or 1.6%. For the week, U.S. crude futures lost 2.5% and Brent futures shed 2.7%.

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