America’s Roundup: U.S. dollar weakens for fifth day on vaccine optimism, Wall Street closes lower, Gold slips, Oil gains 1% on potential OPEC+ rethink and vaccine hopes-November 19th,2020

Posted at 18 November 2020 / Categories Market Roundups

Market Roundup

• Canada Trimmed CPI (YoY) 1.8%, 1.8% previous

• Canada Median CPI (YoY) 1.9%,1.9% previous

• Canada CPI (YoY)   0.4%,0.4% forecast, 0.5% previous

• Canada Oct CPI (MoM)  0.2% forecast, -0.1% previous

• Canada Core CPI (YoY)  0.4%,1.0% previous

• Canada Oct Core CPI (MoM)  0.4%, 0.1% previous

• US Oct Housing Starts 1.530M, 1.460M forecast, 1.415M previous

• US Oct Housing Starts (MoM) 4.9%, 1.9% previous

• US Oct Building Permits 1.545M, 1.560M forecast, 1.545M previous

• US Building Permits (MoM) 0.0%,  4.7% previous

• US Gasoline Inventories 2.611M, 0.087M forecast , -2.309M previous

• US Crude Oil Inventories 1.650M, 4.278M previous

Looking Ahead - Economic Data (GMT) 

•23:50 Japan Foreign Bonds Buying 1,365.8B previous

•23:50 Japan Foreign Investments in Japanese Stocks 485.5B previous

•00:30 Australia Oct Employment Change  -30.0K forecast, -29.5K previous          

•00:30 Australia Oct Full Employment Change  -20.1K previous

•00:30 Australia Oct Participation Rate 64.7%forecast,64.8% previous

•00:30 Australia Oct Unemployment Rate  7.2% , 6.9% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency summaries

EUR/USD: The euro was little changed against the dollar on Wednesday as cheer over COVID-19 vaccine developments faded. Investors opted for caution as surging novel coronavirus cases in   winter set in. A spike in infections have driven record hospitalisations and fresh restrictions on gathering in the United States, while new outbreaks vex authorities in Japan, South Korea and Australia. Immediate resistance can be seen at 1.1887 (23.6% fib), an upside break can trigger rise towards 1.1929 (Higher BB).On the downside, immediate support is seen at 1.1847 (38.2% fib), a break below could take the pair towards 1.1816 (50%fib).

GBP/USD: Sterling gained against dollar on Wednesday as weaker U.S. dollar and  hopes that Britain will forge a post-Brexit trade deal with the European Union supported sterling. Hopes for Brexit deal has been fed by recent positive comments from British government officials, but also by the announcement that Dominic Cummings, one of the political architects of the Brexit project, was set to leave the government. The pound was last trading up 0.3% at $1.3277, but it was flat against the euro at 89.44 pence. It was also neutral versus the Japanese yen at 138.08. Immediate resistance can be seen at 1.3296 (38.2%fib), an upside break can trigger rise towards 1.3391 (23.6% fib).On the downside, immediate support is seen at 1.3224 (50%fib), a break below could take the pair towards 1.3141(61.8%fib).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday, as positive news on a COVID-19 vaccine boosted oil prices and domestic data showing higher inflation reduced prospects of additional policy easing from the Bank of Canada. The Canadian dollar was trading 0.5% higher at 1.3041 to the greenback. The currency touched its strongest intraday level since last Wednesday at 1.3034.Canada’s annual inflation rate climbed to 0.7% in October from 0.5% in September, mainly on higher food prices, Statistics Canada said. The average of three underlying rates that are closely watched by the Bank of Canada was at 1.8%, up from 1.7%, moving closer to the central bank’s 2% target.Immediate resistance can be seen at 1.3144 (Daily high), an upside break can trigger rise towards 1.3160 (38.2%fib).On the downside, immediate support is seen at 1.3016(23.6%fib), a break below could take the pair towards 1.2925(Nov 9th low).

USD/JPY: The dollar declined against the Japanese yen on Wednesday as positive vaccine news offset the surge in coronavirus cases and tighter economic restrictions across the United State. Pfizer announced that the final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective, giving relief to a pandemic-weary market. That followed news that Moderna Inc released preliminary data for its vaccine, showing 94.5% effectiveness.That said, the number of reported global daily deaths from the coronavirus stood at 10,816 on Tuesday. The market showed a little more appetite for risk-taking, with gains in currencies that rise in times of improving sentiment such as sterling, the New Zealand dollar, and Norwegian crown. Strong resistance can be seen at 104.34 (38.2 %fib), an upside break can trigger rise towards 104.55 (14DMA).On the downside, immediate support is seen at 103.88(23.6%fib), a break below could take the pair towards 103.48(Lower BB).

Equities Recap

European stocks closed higher on Wednesday as more positive updates on COVID-19 vaccine and merger activity in the region helped offset worries about the fast-spreading virus.

UK's benchmark FTSE 100 closed down by  1.51 percent, Germany's Dax ended down by 2.56 percent, France’s CAC finished the day down by 2.85 percent.                

U.S. stocks lost substantial ground at the close of a see-saw session on Wednesday as investors weighed encouraging vaccine developments against surging COVID-19 infections and lockdowns.

Dow Jones closed down  by  1.16% percent, S&P 500 closed down by 1.16% percent, Nasdaq settled down  by 0.82%      percent.

Treasuries Recap

U.S. Treasury yields rose on Wednesday on optimism over coronavirus vaccines and after a weak 20-year bond auction dented the appeal of the safe haven debt.

Benchmark 10-year yields rose one basis point to 0.882%. The yields have fallen from an eight-month high of 0.975% last week.

Commodities Recap

Gold slipped on Wednesday on more positive developments on Pfizer's race for a COVID-19 vaccine, accelerating a move into riskier assets again.

 Spot gold was down 0.3% to $1,872.71 per ounce by 1321 GMT, while U.S. gold futures  fell 0.7% to $1,872.10.

Oil prices firmed by about 1% on Wednesday on hopes OPEC and its allies will delay a planned increase in oil output and after Pfizer said its COVID-19 vaccine was more effective than previously reported.

Brent crude   rose 59 cents, or 1.4%, to settle at $44.34 a barrel while U.S. West Texas Intermediate crude  gained 39 cents, or 0.9%, to end the session at $41.82.

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