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America’s Roundup: Dollar rises again as markets adjust to vaccine hope and higher yields, Wall Street ends mixed, Gold inches up, Brent touches $45/bbl on vaccine hopes and U.S. crude drawdown-November 12th,2020

Posted at 11 November 2020 / Categories Market Roundups


Market Roundup

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

 •US Mortgage Market Index 833.9, 838.2 previous         

•US MBA Mortgage Applications (WoW) -0.5%,3.8% previous   

•Brazil Sep Retail Sales (MoM)  0.6%,2.5% previous        

•Russia Trade Balance  10.058, 6.61B forecast , 3.72B previous   

Looking Ahead - Economic Data (GMT) 

• 23:50 Japan Foreign Bonds Buying 72.1B

• 23:50 Japan Core Machinery Orders (MoM)  0.07 ,0.2 previous               

•23:50 Japan Sep Core Machinery Orders (YoY)                 -11.6%,-15.2% previous

•23:50 Japan Sep PPI (MoM)  -0.2% forecast , -0.2% previous     

•23:50 Japan PPI (YoY)  -2.1%,-0.8% previous     

•00:00 Australian MI Inflation Expectations 3.4% previous           

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined against dollar on Wednesday as hopes of potential COVID-19 were tempered by spiking coronavirus infections and the looming threat of a new round of lockdowns. The dollar gained ground against a basket of currencies and the safe-haven yen weakened on hopes that a medical solution to the pandemic could jump start economic growth. The dollar index  rose 0.28%, with the euro   down 0.3% to $1.1779.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 $1.3220.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/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday as hopes of potential COVID-19 were tempered by spiking coronavirus infections and the looming threat of a new round of lockdowns. Global oil benchmark Brent rose on Wednesday, briefly touching a more than two-month high above $45 a barrel on hopes of a COVID-19 vaccine that could boost demand and later pulling back as concerns about rising cases overtook bullish news. The Canadian dollar was trading 0.2% lower at 1.3061 to the greenback. Immediate resistance can be seen at 1.3098 (Daily high), an upside break can trigger rise towards 1.3156 (50%fib).On the downside, immediate support is seen at 1.3022(23.6%fib), a break below could take the pair towards 1.2986 (Daily low).

USD/JPY: The dollar gained against the Japanese yen Wednesday as markets continued to adjust to higher interest rates and prospects for economic growth following news on Monday of encouraging results for a coronavirus vaccine. The dollar has started moving up with gains in equities in a switch from its safe-haven status during the COVID-19 crisis when it tended to move in the opposite direction. The dollar   was up 0.3% on Wednesday against a basket of currencies after a flat day on Tuesday and a rise of 0.5% on Monday. 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 day on Wednesday as optimism around a potential COVID-19 vaccine and encouraging comments from European Central Bank chief Christine Lagarde offset worries of economic damage from surging infections.

UK's benchmark FTSE 100 closed up by  1.35 percent, Germany's Dax ended up by 0.40percent, France’s CAC finished the day down by 0.48 percent.                         

The Nasdaq led Wall Street’s advance on Wednesday as investors switched back to technology stocks and away from economically sensitive sectors as they weighed COVID-19 vaccine progress against a virus surge and likely timing for a economic rebound.

Dow Jones closed down  by  0.08% percent, S&P 500 closed up by 0.77 % percent, Nasdaq settled up  by 2.01%percent.

Commodities Recap

Gold edged up on Wednesday, buoyed by a softer dollar as investors weighed the logistical challenges surrounding the mass roll-out of a potential COVID-19 vaccine, with a surge in new infections boosting bets of further economic support.

Spot gold  rose 0.1% to $1,878.54 per ounce by 0721 GMT.  U.S. gold futures   were little changed at $1,876.40.

Global oil benchmark Brent rose on Wednesday, briefly touching a more than two-month high above $45 a barrel on hopes of a COVID-19 vaccine that could boost demand and later pulling back as concerns about rising cases overtook bullish news.

Brent settled up 19 cents, or 0.4%, at $43.80 a barrel, after earlier trading at a session peak of $45.30 - the first time it has cleared the $45 threshold since early September.

U.S. West Texas Intermediate (WTI) crude settled up 9 cents at $41.45, after setting a session high of $43.06.

 


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