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America’s Roundup: Dollar hits three-week highs versus Japanese yen after vaccine news,Wall Street ends mixed, Gold gains,Oil gains nearly 3% on vaccine hopes, even as nations reimpose lockdowns-November 11th,2020

Posted at 10 November 2020 / Categories Market Roundups


Market Roundup

•US Redbook (MoM) -1.2%,1.2% previous

•US Redbook (YoY) 1.1%  , 3.2% previous

•US Sep JOLTs Job Openings 6.436M,  6.500M forecast, 6.493M previous

•US IBD/TIPP Economic Optimism 50.0,55.2 previous

•US 10-Year Note Auction 0.765% previous

Looking Ahead - Economic Data (GMT)

•23:30 Australia Nov Westpac Consumer Sentiment  3.8% forecast,11.9% previous

• 23:50Japan M2 Money Stock (YoY) 9.2% forecast, 9.0% previous

• 23:50Japan Oct M3 Money Supply  1,915.2T previous

• 01:00 New Zealand RBNZ Interest Rate Decision0.25% forecast,0.25% previous

• 06:00Japan Machine Tool Orders (YoY)   -15.0% previous

Looking Ahead - Events, Other Releases (GMT)

• 01:00 New Zealand RBNZ Rate Statement

• 01:00 New Zealand RBNZ Monetary Policy Statement

• 02:00 New Zealand RBNZ Press Conference

Currencies Summary

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 sterling got a boost from renewed Brexit hopes, ignoring the fact that British employers made a record number of staff redundant in the third quarter. Appetite for buying riskier assets grew after Pfizer and BioNTech announced a promising coronavirus vaccine on Monday, coupled with expectations that the UK will manage to clinch a deal with the European Union by the end of the year. The pound rose to a two-month high of $1.3222. Sterling was last trading up 0.4% at $1.3261, and up 0.1% against the euro at 89.62 pence, close to a two-month high. 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/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday, retreating from the more than two-year high hit in the previous session after a promising coronavirus vaccine development boosted demand for riskier currencies. Oil prices rose on Tuesday as hopes that a COVID-19 vaccine could be on the horizon outweighed the expected negative impact on fuel demand of new lockdowns to curb the virus. The Canadian dollar was trading 0.2% lower at 1.3022 to the greenback, pulling back from its strongest intraday level in more than two years on Monday at 1.2928. Immediate resistance can be seen at 1.3038 (5DMA), an upside break can trigger rise towards 1.3098(38.2%fib).On the downside, immediate support is seen at 1.3018 (23.6%fib), a break below could take the pair towards 1.2918 (Lower BB).

USD/JPY: The dollar rose against the Japanese yen Tuesday as investors remained optimistic about progress toward a COVID-19 vaccine and the currency markets digested Monday’s big moves. 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 - news which drove renewed appetite for risk that lifted global markets. The dollar’s rise on Monday of 0.5%, was caused by investors quitting long positions in other major safe-haven currencies such as the Japanese yen and the Swiss franc. 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).

Equities Recap

European shares held near eight-month highs on Tuesday, riding a wave of optimism about a COVID-19 vaccine breakthrough, although concerns about the pandemic’s economic damage capped gains.

UK's benchmark FTSE 100 closed up by 1.79 percent, Germany's Dax ended up by 0.51 percent, France’s CAC finished the day up by 1.55 percent.

The S&P 500 and the Nasdaq fell on Tuesday as excitement over signs of a first successful late-stage COVID-19 vaccine trial faded, while investors continued to pull money out of some Big Tech companies that have benefited most from the pandemic.

 Dow Jones closed up by 0.90 percent, S&P 500 ended lower  by 0.14 percent, Nasdaq settled down by 1.37 percent.

Treasuries Recap

U.S. Treasury yields rose modestly on Tuesday, as the market consolidated the previous session's strong gains fueled by news of a potential coronavirus vaccine.

In late afternoon trading, U.S. 10-year Treasury yields edged up to 0.969% from 0.958% late on Monday. They hit 0.975% on Monday, the highest since March.

Commodities Recap

Oil ended nearly 3% higher on Tuesday as hopes that a COVID-19 vaccine is on the horizon outweighed worries about a drop in fuel demand from new lockdowns to contain the virus.

Brent crude   futures settled up $1.21, or 2.9%, at $43.61 per barrel. U.S. West Texas Intermediate (WTI) crude  futures gained $1.07, or 2.7%, to $41.36.

Gold jumped more than 1% on Tuesday, following a sharp slide in the last session, as focus returned to the likelihood of more monetary stimulus to revive a global economy still reeling from the COVID-19 pandemic.

Spot gold  rose 1.4% to $1,888.51 per ounce , while U.S. gold futures  were 1.7% lower at $1,886.40.


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