Posted at 10 November 2020 / Categories Market Roundups
• French Unemployment Rate (Q3) 9.0%,7.9% forecast, 7.1% previous
• UK Sep Average Earnings ex Bonus 1.9%,1.5% forecast, 0.8% previous
• UK Sep Average Earnings Index +Bonus 1.3%,1.0% forecast, 0.1% previous
• UK Claimant Oct Count Change -29.8K, 50.0K forecast, 28.0K previous
• UK Sep Employment Change 3M/3M (MoM) -164K,-148K forecast, -153K previous
• UK Sep Unemployment Rate 4.8%,4.8% forecast, 4.5% previous
• French Sep Industrial Production (MoM) 1.4%,0.8% forecast, 1.3% previous
• Italian Sep Industrial Production (YoY) -5.1%,-1.7% forecast, -0.3% previous
• Italian Industrial Production (MoM) -5.6%, -2.0% forecast, 7.7% previous
• German Nov ZEW Economic Sentiment 32.8, 52.3 previous
• German Nov ZEW Economic Sentiment 39.0, 41.7 forecast, 56.1 previous
• German Nov ZEW Current Conditions -64.3, -65.0 forecast, -59.5 previous
Looking Ahead - Economic Data (GMT)
13:55 US Redbook (MoM) 1.2% previous
•13:55 US Redbook (YoY) 3.2% previous
•15:00 US Sep JOLTs Job Openings 6.500M forecast, 6.493M previous
•15:00 US IBD/TIPP Economic Optimism 55.2 previous
•18:01 US 10-Year Note Auction 0.765% previous
Looking Ahead - Events, Other Releases (GMT)
•19:00 US FOMC Member Quarles Speaks
•22:00 US FOMC Member Brainard Speaks
EUR/USD: The euro declined against dollar on Tuesday as investors dumped euro and switched to dollar after pharmaceutical giant Pfizer said its experimental COVID-19 vaccine was more than 90% effective. The Pfizer announcement surprised investors, who sent stocks soaring. Markets have been waiting for weeks on news about any effective vaccine for the COVID-19 pandemic, which has led to massive economic shutdowns. Pfizer Inc and German partner BioNTech SE are the first drugmakers to show successful data from a large-scale clinical trial of a coronavirus vaccine. Immediate resistance can be seen at 1.1865 (38.2% fib), an upside break can trigger rise towards 1.1934 (Higher BB).On the downside, immediate support is seen at 1.1773 (50% fib), a break below could take the pair towards 1.1742 (11DMA).
GBP/USD: Sterling strengthened against dollar on Tuesday as global risk appetite rose on news of progress in Pfizer’s COVID-19 vaccine trials, as well as Democrat Joe Biden’s U.S. election win, but ongoing Brexit negotiations still weighed on the UK currency. Global equities have risen as investors turned optimistic that a Biden presidency would result in a bigger fiscal stimulus package for the United States and calmer global trade.Market sentiment got a further boost on Monday when Pfizer Inc said that its experimental COVID-19 vaccine was more than 90% effective. Immediate resistance can be seen at 1.3262 (Higher BB), an upside break can trigger rise towards 1.3320 (23.6%fib ).On the downside, immediate support is seen at 1.3220 (38.2%fib), a break below could take the pair towards 1.3135 (50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday after news of progress towards a COVID-19 vaccine boosted demand for dollar. U.S. drugmaker Pfizer Inc and German partner BioNTech said on Monday a large-scale clinical trial showed their vaccine was more than 90% effective in preventing COVID-19.The dollar which is considered to be a safe haven and so typically falls on positive newsrose after the announcement, as investors quit their long positions in safe currencies such as the Japanese yen and Swiss franc. Immediate resistance can be seen at 0.9177 (50%fib), an upside break can trigger rise towards 0.9214 (38.2%fib).On the downside, immediate support is seen at 0.9146 (61.8%fib), a break below could take the pair towards 0.9110 (11 DMA).
USD/JPY: The dollar rose against the Japanese yen Tuesday as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery. Pfizer Inc said its COVID-19 vaccine, developed with German partner BioNTech SE, was more than 90% effective in preventing infection, marking the first successful results from a large-scale clinical trial. The dollar was 0.02 percent higher versus the Japanese yen at 105.21.Strong resistance can be seen at 105.65 (21 DMA), an upside break can trigger rise towards 106.48 (23.6%fib).On the downside, immediate support is seen at 104.94 (50%fib), a break below could take the pair towards 104.21(61.8%fib).
European shares hovered at eight-month highs on Tuesday on optimism around signs of a breakthrough in developing a COVID-19 vaccine, although concerns about the depth of the economic damage from the pandemic capped gains.
At (GMT 11:30),UK's benchmark FTSE 100 was last trading up at 1.03 percent, Germany's Dax was down by 1.25 percent, France’s CAC finished was up by 0.86percent.
Gold prices edged higher in early Asian trade on Tuesday after falling as much as 5.2% in the previous session, as hopes of more U.S. stimulus measures to weather the impact of rising COVID-19 cases nudged investors towards theprecious metal as an inflation hedge.
Spot gold rose 0.5% to $1,871.81 per ounce by 0136 GMT.U.S. gold futures were up 0.8% at $1,869.40.
U.S. oil prices fell in early trade on Tuesday as concerns over demand in the near term in coronavirus-hit economies in Europe and the United States returned to haunt the market after an overnight surge on progress towards a COVID-19 vaccine.
U.S. West Texas Intermediate (WTI) crude futures dropped 81 cents, or 2%, to $39.48 a barrel at 0029 GMT