America’s Roundup: Dollar flat, euro bumps higher as sentiment see-saws, Wall Street drops, Gold rises 1%, Oil falls on coronavirus surge, unexpected U.S. crude stockpile rise-November 13th,2020

Posted at 12 November 2020 / Categories Market Roundups

Market Roundup

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Looking Ahead - Economic events and other releases (GMT)

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Currencies Summaries

EUR/USD: The euro edged higher against dollar on Thursday as investors awaited further details on whether drugmakers can develop a coronavirus vaccine. Encouraging comments from European Central Bank chief Christine Lagarde on continued economic support boosted European shares for the third straight session. Moderna Inc said on Wednesday it is preparing to submit data on its experimental COVID-19 vaccine to an independent safety board, which should help determine the vaccine’s efficacy. Investors the world over are keenly awaiting details on both drugs, but   it will still take a long time to distribute an effective vaccine. Immediate resistance can be seen at 1.1805 (50%fib), an upside break can trigger rise towards 1.1860 (61.8%fib).On the downside, immediate support is seen at 1.1751 (38.2%fib), a break below could take the pair towards 1.1681 (23.6% fib).

GBP/USD: Sterling declined against dollar on Thursday after Britain’s economy grew by a slower than expected 1.1% in September from August, a pace that leaves the country lagging other rich nations in its attempted recovery from the pandemic. The impact of the number was all the heavier because the period measured was before the latest COVID-19 restrictions on businesses took effect. Another piece of data released on Thursday showed that in the July-September period, gross domestic product grew by a record 15.5% compared with the previous three months.. Immediate resistance can be seen at 1.3222 (38.2%fib), an upside break can trigger rise towards 1.3317 (23.6%fib).On the downside, immediate support is seen at 1.3131 (50%fib), a break below could take the pair towards 1.3067(61.8 % fib).

USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as the rally in global shares lost some momentum and ahead of a speech by Bank of Canada Senior Deputy Governor Carolyn Wilkins. Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital. U.S. crude oil futures were up 0.6% at $41.69 a barrel, although gains were capped by tempered expectations of an early release of a vaccine and after the IEA raised doubts about a quick demand rebound amid surging coronavirus infections in Europe and the United States. Immediate resistance can be seen at 1.3162 (50%fib), an upside break can trigger rise towards 1.3222 (61.8%fib).On the downside, immediate support is seen at 1.3099 (38.2%fib), a break below could take the pair towards 1.3016 (23.6%fib).

USD/JPY: The dollar declined against the Japanese yen on Thursday as the initial burst of optimism over headway in a coronavirus vaccine trial cooled. Traders were tempering expectations of an early release of a COVID-19 vaccine. Most of Europe’s main economies are already grappling with a wave of infections and new social restrictions. New York also ordered bars and restaurants to start closing early on Wednesday after U.S. cases hit records. Until the timing of the availability of a vaccine becomes clearer market sentiment is likely to remain volatile. Strong resistance can be seen at 105.63 (38.2% fib), an upside break can trigger rise towards 106.24 (higher BB).On the downside, immediate support is seen at 104.93 (50%fib), a break below could take the pair towards 104.60 (14 DMA ).

Equities Recap

European shares retreated from eight-month highs on Thursday as surging coronavirus infections raised doubts about a quicker economic rebound and overshadowed several upbeat quarterly earnings reports.

UK's benchmark FTSE 100 closed down by 0.68 percent, Germany's Dax ended down  by 1.24 percent, France’s CAC finished the day down by 1.52 percent.

Wall Street tumbled on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.

Dow Jones closed down by 1.08% percent, S&P 500 closed down by 1.01% percent, Nasdaq settled down by 0.65% percent.

Treasuries Recap

U.S. Treasury yields edged lower on Thursday as euphoria over a potential COVID-19 vaccine faded in the face of spiking infections and threat of a new round of economic restrictions to contain the pandemic.

Benchmark 10-year notes last rose 30/32 in price to yield 0.8897%, from 0.989% late on Tuesday. The 30-year bond   last rose 73/32 in price to yield 1.6572%, from 1.76% late on Tuesday.

Commodities Recap

Gold rose 1% on Thursday on market skepticism over the logistics of a potential COVID-19 vaccine roll-out as cases continued to surge in the United States, while hopes of more fiscal and monetary stimulus offered support to the safe-haven metal.

Spot gold rose 0.9% to $1,882.11 per ounce by 10:36 a.m. EDT (1536 GMT), while U.S. gold futures climbed 1% to $1,880.10.

Oil prices fell on Thursday, weighed down by the surge in coronavirus cases that is hampering the global economy, along with an unexpected rise in U.S. crude stockpiles.

Brent crude  fell 27 cents to settle at $43.53 a barrel, while U.S. West Texas Intermediate (WTI) crude   fell 33 cents to settle at $41.12 a barrel.

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