News

America’s Roundup: Dollar bounces from three-month low, Wall Street rises, Gold falls to 4-month low, Oil prices settle up over 2% on COVID-19 vaccine news-November 24th,2020

Market Roundup

• US Oct Chicago Fed National Activity 0.83, 0.27 previous

• French 3-Month BTF Auction -0.634%,-0.600% previous

• French 12-Month BTF Auction -0.616%,-0.598% previous

• French 6-Month BTF Auction -0.618% ,-0.602% previous

• US Nov Services PMI 57.7, 55.0 forecast, 56.9 previous

• US Markit Composite PMI 57.9, 56.3 previous

• US Nov Manufacturing PMI 56.7, 53.0 forecast, 53.4 previous

Looking Ahead Economic Data (GMT)

• No data ahead

Looking Ahead – Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro dipped against dollar on Monday as euro reversed course from initial gains as better-than-expected U.S. business activity data boosted dollar. Dollar jumped after data showed U.S. business activity in November expanded at its fastest rate in more than five years, pointing to a recovery from the pandemic’s economic damage. The upbeat data came after Britain’s AstraZeneca said its vaccine could be around 90% effective without any serious side effects. Immediate resistance can be seen at 1.1910 (23.6%fib), an upside break can trigger rise towards 1.1938 (Higher BB).On the downside, immediate support is seen at 1.1874 (38.2%fib), a break below could take the pair towards 1.1848 (50% fib).

GBP/USD: Sterling rallied on Monday, briefly touching a 2-1/2-month high, as more positive news about a potential COVID-19 vaccine propelled investors to buy riskier currencies and investors bet Britain and the European Union would clinch a Brexit trade deal. News on Monday that AstraZeneca’s vaccine for the novel coronavirus could be around 90% effective added to the positive mood.The British currency rose 0.8% to as high as $1.3396 , its strongest since early September, before the gains faded in late US trading. It last stood at $1.3320.Immediate resistance can be seen at 1.3385 (Daily high), an upside break can trigger rise towards 1.3408 (23.6%fib).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3235 (50 % fib).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as the latest news of progress on a COVID-19 vaccine boosted investor sentiment, but the loonie gave back much of its earlier advance as the greenback broadly rallied. The price of oil , one of Canada’s major exports, settled 1.5% higher after AstraZeneca said its COVID-19 vaccine could be around 90% effective. The Canadian dollar was trading 0.1% higher at 1.3085 to the greenback . The currency, which rose 0.3% last week, traded in a range of 1.3047 to 1.3112.Immediate resistance can be seen at 1.3105 (38.2%fib), an upside break can trigger rise towards 1.3137 (30DMA).On the downside, immediate support is seen at 1.3030 (23.6%fib) a break below could take the pair towards 1.2988 (Nov 10th low).

USD/JPY: The dollar rebounded against the Japanese yen on as data showed that U.S. business activity expanded at the fastest rate in more than five years in November, and after the index hit strong technical support.IHS Markit’s manufacturing and services sector purchasing managers’ indexes both topped even the most optimistic forecasts in poll that predicted both would level off, offering a counterweight to data suggesting economic momentum was slackening after the third-quarter’s torrid rebound from an historic plunge last spring. The greenback jumped 0.63% against the safe haven Japanese yen to 104.55 yen. Strong resistance can be seen at 103.83 (5DMA), an upside break can trigger rise towards 104.05 (38.2% fib).On the downside, immediate support is seen at 103.65 (5 DMA), a break below could take the pair towards 103.21 (Lower BB).

Equities Recap

European shares closed lower on Monday as investors weighed signs of progress in developing a COVID-19 vaccine against the threat of economic damage from sweeping business restrictions to contain a surge in infections.

UK’s benchmark FTSE 100 closed down 0.28 percent, Germany’s Dax ended down by 0.08 percent, France’s CAC finished the day down by 0.07 percent.

Wall Street’s main indexes rose on Monday as hopes of a COVID-19 vaccine and data showing a rapid expansion in monthly business activity fueled bets of a quicker economic recovery from a pandemic-driven recession.

Dow Jones closed up by 1.12% percent, S&P 500 closed up by 0.56 % percent, Nasdaq settled down by 0.22 percent.

Treasuries Recap

U.S. Treasury yields moved higher on Monday and the yield curve steepened as investors took encouragement from positive COVID-19 vaccine news and looked ahead to minutes from the U.S. Federal Reserve due later in the week.

The benchmark 10-year yield was up 2.1 basis points at 0.8504% in early afternoon trading.

Commodities Recap

Gold fell nearly 2% to its lowest in four-months on Monday as better-than-expected U.S. business activity data and optimism over progress in COVID-19 vaccines boosted hopes for a swifter economic rebound and drove investors towards riskier assets.

Spot gold dipped 1.8% to $1,836.71 per ounce by 10:29 a.m. EST (1529 GMT), after falling to its lowest since July 21 at $1,834.95. U.S. gold futures shed 2% to $1,834.80.

Oil prices settled up more than 2% on Monday, extending last week’s gains as the latest report of encouraging coronavirus vaccine trials had traders anticipating a recovery in demand.

Brent crude settled up $1.10, or 2.45 % to $46.06 a barrel while U.S. West Texas Intermediate crude gained 64 cents to $43.06 a barrel, a 1.51% gain. Both benchmarks jumped 5% last week


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