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Europe Roundup: Sterling dips against dollar as Brexit deadlock weighs,European shares gains, Gold edges up, Brent oil hits $45 on hopes for COVID-19 vaccine, U.S. crude stock draw-November 11th,2020

Posted at 11 November 2020 / Categories Market Roundups


Market Roundup

•German 30-Year Bund Auction  -0.060%,-0.160% previous

•Portuguese Oct CPI (YoY)   -0.1%,-0.1% previous,-0.1% previous

•Portuguese Oct CPI (MoM)  -0.1%,-0.1% previous,-0.1% previous

•US Mortgage Refinance Index 3,973.1, 3,949.8 previous

•US Mortgage Market Index 833.9, 838.2 previous

•Russia Sep Trade Balance  6.61B forecast, 3.72B previous

Looking Ahead – Economic Data (GMT)

•14:00 UK NIESR GDP Estimate 15.2% previous

• US Seevol Cushing Storage Report 2.411M previous

• 16:00 Brazil Thomson Reuters IPSOS PCSI  44.96 previous

Looking Ahead - Economic events and other releases (GMT)

•14:45 ECB's De Guindos Speaks

•16:00 ECB's Lane Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Wednesday as investors awaited speech from European Central Bank President Christine Lagarde. European Central Bank President Christine Lagarde is expected to speak at an ECB forum on central banking later in the day. Her comments are not expected to alter expectations for further stimulus at the ECB’s December meeting. The dollar steadied against a basket of six major currencies and was up 0.2% at 92.927. Immediate resistance can be seen at 1.1805(50% fib), an upside break can trigger rise towards 1.1863 (61.8% fib).On the downside, immediate support is seen at 1.1748 (38.2% fib), a break below could take the pair towards 1.1682(23.6%fib).

GBP/USD: Sterling declined against dollar on Wednesday as Brexit deadlock weighed on sterling. investors fear  that the economic fallout from a second nationwide lockdown, combined with the threat of Britain and the European Union failing to agree on a post-Brexit trade deal, could push the Bank of England to introduce negative rates in January. The sterling  was down 0.28% versus the U.S. dollar at $1.3232.Immediate resistance can be seen at 1.3311(23.6%fib),an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3222(38.2%fib), a break below could take the pair towards 1.3145 (50%fib)

USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as optimism about a potential coronavirus vaccine boosted dollar. Sentiment for the dollar got a boost after Pfizer Inc and BioNTech said on Monday their experimental coronavirus vaccine was 90% effective. At (GMT 13:00), greenback gained 0.24% versus the Swiss franc to 0.9171.Immediate resistance can be seen at 0.9206(38.2%fib), an upside break can trigger rise towards 0.9227(Higher BB).On the downside, immediate support is seen at 0.9133 (61.8%fib), a break below could take the pair towards 0.9098(5 DMA).

USD/JPY: The dollar rose against the Japanese yen Wednesday as   prospects of an effective COVID-19 vaccine outweighed nagging worries over surging coronavirus infections. Investors have pivoted to riskier assets after Pfizer Inc said on Monday its COVID-19 vaccine candidate, developed with BioNTech, showed a 90% success rate in preventing infection during trials. At 1300 GMT, the dollar was 0.13 percent higher versus the Japanese yen at 105.39. Strong resistance can be seen at 105.67(38.2%fib), an upside break can trigger rise towards 106.22(Higher BB).On the downside, immediate support is seen at 104.97 (50%fib), a break below could take the pair towards 104.60(5 DMA).

Equities Recap

European shares rose for a third straight session on Wednesday as optimism around a COVID-19 vaccine offset concerns about the economic damage from surging coronavirus infections across the continent.

At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading up at 0.84 percent, Germany's Dax was up by 0.51 percent, France’s CAC was last up by 0.47 percent.

Commodities Recap

Gold prices edged higher on Wednesday supported by hopes of more U.S. stimulus measures as surging COVID-19 cases threaten to hamper economic recovery, although optimism over vaccine developments limited gains.

Spot gold was little changed at $1,875.67 per ounce by 1050 GMT, while U.S. gold futures eased 0.1% to $1,874.

Benchmark Brent oil rose to a more than two-month high above $45 a barrel on Wednesday on hopes of an effective COVID-19 vaccine and an industry report showing U.S. crude inventories fell more than expected.

Brent was up $1.41, or 3.2%, at $45.02 at 1118 GMT, the first time it cleared the $45 threshold since early September. U.S. West Texas Intermediate (WTI) crude also added $1.41 cents, or 3.4%, to $42.77 a barrel.


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