News

Europe Roundup: Sterling gains as risk sentiment improves, European shares rise, Gold falls ,Oil hits highest since March on vaccine, Biden transition-November 24th,2020

Market Roundup

•Finnish Oct Export Price Index (YoY) -7.1%,-6.9% previous

•Finnish Oct Import Price Index (YoY) -6.6%,-7.3% previous

•Finnish Oct PPI (YoY) -5.4%,-5.3% previous

• German GDP (YoY) (Q3) -3.9%,-4.1% forecast, -11.3% previous

•German GDP (QoQ) (Q3) 8.5%, 8.2% forecast, -9.7% previous

•French Nov Business Survey 92, 91 forecast, -93 previous

•German Ifo Nov Business Climate Index 90.7, 90.1 forecast, 92.7 previous

•German Nov Current Assessment 90.0, 87.0 forecast, 90.3 previous

•German Nov Business Expectations 91.5, 93.5 forecast, 91 previous

Looking Ahead Economic Data

•13:55 US Redbook (YoY) 1.7% previous

•13:55 US Redbook (MoM) -1.0% previous

•14:00 Belgium NBB Business Climate -8.5 previous

•14:00 US Sep S&P/CS HPI Composite – 20 s.a. (MoM) 0.7% forecast, 0.5% previous

•14:00 US S&P/CS HPI Composite – 20 n.s.a. (YoY) 5.1% forecast, 5.2% previous

•14:00 US Sep S&P/CS HPI Composite – 20 n.s.a. (MoM) 0.5% forecast, 1.1% previous

•14:00 US Sep House Price Index 297.7 previous

•14:00 US Sep House Price Index (MoM) 1.5% previous

•14:00 US Sep House Price Index (YoY) 8.0% previous

•14:00 US Nov CB Consumer Confidence 98.0 forecast, 100.9 previous

•14:00 US Texas Services Sector Outlook 13.2 previous

•14:00 US Dallas Fed Services Revenues 7.1 previous

•14:00 US Nov Richmond Services Index 19 previous

•14:00 US Nov Richmond Manufacturing Shipments 30 previous

•14:00 US Richmond Manufacturing Index 29 previous

Looking Ahead – Events, Other Releases (GMT)

•16:00 US FOMC Member Bullard Speaks

•17:00 US FOMC Member Williams Speaks

•17:45 US FOMC Member Clarida Speaks

•17:45 ECB’s Lane Speaks

•17:45 Canada BoC Gov Council Member Wilkins Speaks

Fxbeat

EUR/USD: The euro gained on Tuesday after U.S. President Donald Trump accepted the start of a transition to a Biden regime, that may include former Federal Reserve Chair Janet Yellen as Treasury secretary. Trump gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by President-elect Joe Biden despite plans to continue with legal challenges.Democratic allies to the Biden campaign said Yellen is expected to be nominated to become Treasury Secretary, heartening investors as she has called for increased government spending to lift the economy out of a coronavirus induced recession. Immediate resistance can be seen at 1.1875 (38.2%fib), an upside break can trigger rise towards 1.1909 (23.6%fib).On the downside, immediate support is seen at 1.1847 (50%fib), a break below could take the pair towards 1.1819 (61.8% fib).

GBP/USD: Sterling strengthened against dollar on Tuesday as optimism that this week’s Brexit negotiations will result in a deal. The November flash purchasing managers index came in better than expected on Monday, adding to the optimism, although the number remained below 50, which represents contraction. The British pound was last up 0.4% at $1.3322, close to $1.3396, its highest since Sept. 2, reached on Monday. If it were to rise above $1.3481, the surge would propel it to nearly a one-year high. Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3487 (Aug 24th high).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3264 (23rd Nov low).

USD/CHF: The dollar gained against the Swiss franc on Tuesday as the formal go-ahead for U.S. President-elect Joe Biden to begin his transition supported dollar. After weeks of legal challenges to the election results, U.S. General Services Administration chief Emily Murphy wrote to Biden on Monday informing him the formal hand-over process could begin.President Donald Trump tweeted that he had told his team do what needs to be done with regard to initial protocols, an indication he was moving toward a transition. At 13:00 GMT, the dollar was 0.14 percent higher versus the Swiss franc at 0.9134 . Immediate resistance can be seen at 0.9149 (23rd Nov High), an upside break can trigger rise towards 0.9171 (23.6% fib).On the downside, immediate support is seen at 0.9117 (38.2% fib), a break below could take the pair towards 0.9095 (Daily low).

USD/JPY: The dollar strenthed against the Japanese yen Tuesday as U.S. President-elect Joe Biden got the formal go-ahead to begin his transition to the White House. Reports that Biden plans to nominate former Federal Reserve Chair Janet Yellen to become the next Treasury Secretary further boosted dollar on expectations she would pursue more conventional policies than the departing Steven Mnuchin.The progress made on COVID-19 vaccines also helped drive dollar, as investors looked past short-term economic pain from the pandemic to a brighter 2021. Strong resistance can be seen at 104.64 (50% fib), an upside break can trigger rise towards 104.97(61.8% fib).On the downside, immediate support is seen at 104.29 (38.2%fib), a break below could take the pair towards 104.06 (5DMA).

Equities Recap

European shares held near eight-month highs on Tuesday as a possible easing of lockdowns in France added to a brighter mood from encouraging developments related to coronavirus vaccines.

At (GMT 13:00 ),UK’s benchmark FTSE 100 was last trading up at 1.28 percent, Germany’s Dax was up by 1.19 percent, France’s CAC was last up by 1.48 percent.

Commodities Recap

Oil hit its highest since in March on Tuesday, rising towards $47 a barrel, as a third promising coronavirus vaccine spurred demand recovery hopes and U.S. President-elect Joe Biden received the go-ahead to begin his transition.

Brent crude rose 45 cents, or 1%, to $46.51 a barrel by 1110 GMT and hit a session high of $46.72, its highest since March 6. U.S. West Texas Intermediate crude gained 47 cents, or 1.1%, to $43.53.

Gold hit a four-month low on Tuesday as investors deserted the safe-haven metal following a U.S. federal agency’s transition approval for Joe Biden and growing prospects for the swift release of an inexpensive COVID-19 vaccine.

Spot gold fell 1.44% to $1,811.47 per ounce by 1300 GMT, It slumped as much as 2.2% on Monday.


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