News

Europe Roundup:Euro dips on fading economic recovery hopes in Eurozone, European stocks slip to 3-month lows,Gold slides to two-month low, Oil falls as frail demand outlook outweighs U.S. stock drawdown-September 24th,2020

Market Roundup

•French Sep Business Survey 96, 95 forecast, 93 previous

•Switzerland SNB Interest Rate Decision -0.75%,-0.75% forecast, -0.75% previous

•German Sep Business Expectations 97.7, 98.0 forecast, 97.5 previous

•German Sep Ifo Business Climate Index 93.4, 93.8 forecast, 92.6 previous

•German Sep Current Assessment 89.2, 89.5 forecast, 87.9 previous

•Italian Trade Balance Non-EU 3.27B, 4.44B previous

•ECB LTRO 174.5B, 1,308.4B previous

•UK Sep CBI Distributive Trades Survey 11, -10 forecast, -6 previous

•US Initial Jobless Claims 870K, 840K forecast, 860K previous

•US Continuing Jobless Claims 12,580K,12,300K forecast, 12,628K previous

•US Jobless Claims 4-Week Avg 878.25K,912.00K previous

•Belgium Sep NBB Business Climate -10.8, -11.0 forecast, -12.0 previous

•Russia Central Bank Reserves (USD) 590.9B,591.8B previous

Looking Ahead – Economic Data (GMT)

•14:00 US Aug New Home Sales 895K forecast, 901K previous

•14:00 US New Home Sales (MoM) -0.1% forecast, 13.9% previous

•14:30 US Natural Gas Storage 78B forecast, 89B previous

•15:00 US Sep KC Fed Manufacturing Index 23 previous

•15:00 US Sep KC Fed Composite Index 14 previous

Looking Ahead – Events, Other Releases (GMT)

•14:00 US Fed Chair Powell Testifies

•14:00 UK BoE Gov Bailey Speaks

•15:00 German Buba Wuermeling Speaks

•17:00 US Chicago Fed President Evans Speaks

•18:00 US FOMC Member Williams Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Thursday as signs of an economic slowdown in Europe and concerns about the fallout from a second wave of coronavirus infections weighed on euro. A surge in COVID-19 cases in Europe risks becoming a deadly double epidemic of flu and coronavirus infections, EU health officials warned on Thursday as they urged Europeans and their governments not to let their guard down. Sentiment for the euro has suffered a big blow after surveys released on Wednesday showed new restrictions to quell a resurgence in coronavirus infections slammed the euro zone’s services industry into reverse. Immediate resistance can be seen at 1.1642 (Daily high), an upside break can trigger rise towards 1.1724(38.2%fib).On the downside, immediate support is seen at 1.1625 (23.6% fib ), a break below could take the pair towards 1.1600 (Psychological level).

GBP/USD: Sterling edged higher on Thursday after British finance minister Rishi Sunak announced fresh plans to help the pandemic-ravaged economy with a new jobs support scheme to help keep people employed on shorter hours, but warned he could not save every business or role. Sterling has lost 4.8% against the dollar in September so far, and is on course for its worst month since October 2016, as talks of negative rates, the looming risk of a no-deal Brexit and new UK lockdown measures all weighed on the currency. Against the dollar, the pound was up 0.18% at 1.2750 by 13:00 GMT.Immediate resistance can be seen at 1.2786 (5DMA), 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 1.2600(Psychological level).

USD/CHF: The dollar rose against Swiss franc on Thursday as investors sought its safe-haven appeal on growing concerns over the resilience of an economic recovery in the United States and Europe amid a second wave of coronavirus infections. Federal Reserve policymakers called on the U.S. government to provide more fiscal support, fuelling a bout of selling in risky assets overnight, while European economic data has worsened in recent days prompting investors to lighten their positions after a rally in August. Against a basket of six other currencies , the dollar edged up 0.1% to a two-month high at 94.56. Immediate resistance can be seen at 0.9273 (38.2% fib), an upside break can trigger rise towards 0.9323(23.6% fib).On the downside, immediate support is seen at 0.9230(50% fib), a break below could take the pair towards 0.9187(61.8%fib).

USD/JPY: The dollar rose against the Japanese yen on Thursday concern grew over the resilience of an economic recovery in the United States and Europe amid a second wave of coronavirus infections. The dollar benefited from another spike in coronavirus cases in Europe, which boosted its safe-haven appeal, while Federal Reserve policymakers called on the U.S. government to provide more fiscal support, fuelling a bout of selling in risky assets overnight. Against a basket of six other currencies , the dollar edged up 0.1% to a two-month high at 94.50. It is up nearly 2% so far this week as economic momentum shows signs of fading. Strong resistance can be seen at 105.51 (38.2% fib), an upside break can trigger rise towards 105.87 (55 DMA).On the downside, immediate support is seen at 104.98 (5DMA ), a break below could take the pair towards 104.46(23.6% fib).

Equities Recap

A sell-off in global risk assets drove European equities to near three-month lows on Thursday, as the absence of fresh stimulus for the U.S. economy and a second wave of coronavirus cases raised fears of a slowing global recovery.

At (GMT 13:30 ),UK’s benchmark FTSE 100 was last trading down at 0.91 percent, Germany’s Dax was down by 0.30 percent, France’s CAC was last down by 0.53 percent.

Commodities Recap

Gold dropped to a more than two-month low on Thursday, weakened by a robust dollar and as analysts said the lack of additional stimulus measures reduced the metal’s appeal.

Spot gold fell 0.6% to $1,851.85 per ounce by 0929 GMT, extending falls into a fourth session. Earlier in the day, it hit its lowest since July 22 at $1,847.99.U.S. gold futures were down 0.8% to $1,854.30.

Oil prices dropped on Thursday, despite a fall in U.S. inventories last week, amid a stronger dollar and a renewed wave of COVID-19 cases in Europe that led to renewed travel restrictions in several countries.

Brent crude futures fell 21 cents, or 0.5%, to $41.56 a barrel by 0922 GMT, while U.S. West Texas Intermediate (WTI) crude futures dropped 26 cents, or 0.7%, to $39.67 a barrel.


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