America’s Roundup: Dollar weak as Brexit deal boosts euro, sterling, Wall Street falls, Gold dips, Oil falls as China economic concerns outweigh rising refinery runs-October 11th, 2019

Market Roundup

• British parliament to vote on Brexit deal on Saturday

• Dollar set for worst week since mid-June, Wall Street futures flat

• Fed’s Clarida pledges to support economy

• Sterling gives back some gains after Brexit deal rally

• U.S. Baker Hughes Oil Rig Count 713, 712 previous               

• U.S. Baker Hughes Total Rig Count 851, 856 previous                           

Looking Ahead – Economic Data (GMT) 

No economic data

Looking Ahead – Events, Other Releases (GMT)

No significant event

Currency Summaries

EUR/USD: The euro rose against the U.S. dollar on Friday as the common currency jumped on hopes that a Brexit deal between Britain and the European Union could improve the odds of the euro zone avoiding a recession for now. The euro has been rattled this year by dismal manufacturing data and by worries that deepening economic tensions between the United States and China could slow euro zone economies even further.The euro was up 0.32% at $1.1163, a near two-month high. An index that tracks the dollar versus a basket of six major currencies was down 0.39 percent at 97.18. Immediate resistance can be seen at 1.1165 (Daily high), an upside break can trigger rise towards 1.1209 (200 DMA).On the downside, immediate support is seen at 1.1080 (5  DMA), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Sterling held steady against dollar on Friday after ahead of Saturday’s vote on the Brexit deal approved at the European Union summit.Sterling lost initial gains after British Prime Minister Boris Johnson’s new deal was approved by the EU as relief that a no-deal Brexit could be off the table succumbed to doubts as to whether the deal will win parliamentary approval. . At 2041 GMT, the pound was up 0.45 percent at $1.2949, having touched $1.30 on Thursday. Immediate resistance can be seen at 1.2989 (17th Oct high), an upside break can trigger rise towards 1.3052 (May 10th high).On the downside, immediate support is seen at 1.2811 (5 DMA), a break below could take the pair towards 1.2623 (9 DMA).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday, holding near its strongest level since July, as oil prices rose for the third straight day and domestic data showed that home prices edged higher in September. The price of oil, one of Canada's major exports, was supported by bullish signals from both the Chinese and U.S. refining sectors and a North Sea crude disruption that proved temporary. At (2047 GMT), the Canadian dollar was trading nearly unchanged at 1.3121 to the greenback. Immediate resistance can be seen at 1.3180 (5 DMA), an upside break can trigger rise towards 1.3236 (11 DMA).On the downside, immediate support is seen at 1.3117 (Higher BB), a break below could take the pair towards 1.3100 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Friday  after Federal Reserve Vice Chairman Richard Clarida reiterated his stance that the central bank will “act as appropriate” to extend the U.S. recovery and shield the economy from risks posed by geopolitical tensions and slowing global growth.Interest rate futures traders are pricing in a 90% likelihood of a cut this month, according to the CME Group’s FedWatch tool.Data on Wednesday showing that September U.S. retail sales fell for the first time in seven months adds to the case that the Fed is likely to cut rates at the conclusion of its meeting on Oct. 29-30. Strong resistance can be seen at 109.00 (Higher BB), an upside break can trigger rise towards 109.26 (Aug 1st high).On the downside, immediate support is seen at 108.19 (9 DMA), a break below could take the pair towards 107.76 (21 DMA).

Equities Recap

Gloomy earnings reports from French carmaker Renault and food group Danone drove European shares lower on Friday, rounding off a tumultuous week that left investors waiting anxiously for the next twist in the Brexit saga.

UK's benchmark FTSE 100 closed down by 0.44 percent, Germany's Dax ended down by -0.17 percent, France’s CAC finished the day down by 0.83 percent.

Wall Street fell on Friday as negative headlines about Johnson & Johnson and Boeing, along with bleak economic data from China, soured investor risk appetite and offset generally positive corporate earnings.

Dow Jones closed down by 0.95 percent, S&P 500 ended down by 0.39 percent, Nasdaq finished down by 0.83 percent.

Treasuries Recap

U.S. Treasury yields fell on Friday as investors awaited a UK vote on Britain’s deal to leave the European Union this weekend, and after a senior Federal Reserve official said the U.S. central bank will act as appropriate to sustain economic expansion.

Benchmark 10-year notes gained 3/32 in price to yield 1.745%, down from 1.755% on Thursday. The yield rose as high as 1.799% after the Brexit deal was announced on Thursday.

Commodities Recap

Gold prices dipped on Friday as investors booked profit after the European Union forged a new Brexit deal with Britain, though a floor was kept under prices by uncertainties over trade negotiations and the global economy.

Spot gold edged down by 0.1% to $1,490.05 an ounce at 0722 GMT. U.S. gold futures fell 0.4% to $1,493.

Oil prices edged lower on Friday, as concerns about China’s economy outweighed bullish signals from its refining sector, but losses were limited on hopes for progress toward a U.S.-China trade agreement.

Benchmark Brent crude oil futures   fell 49 cents to settle at $59.42 a barrel. U.S. West Texas Intermediate (WTI) crude   futures lost 15 cents to settle at $53.78 a barrel.

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