Europe Roundup: Euro dips as COVID-19 cases rise in Eurozone, European stocks slip, Gold edges up, Oil steady as market eyes coronavirus hit to demand-September 25th,2020

Market Roundup

•UK Aug Public Sector Net Cash Requirement 25.693B, 16.491B previous

•UK Aug Public Sector Net Borrowing 35.20B, 35.05B forecast, 15.44B previous

•Sweden Aug Household Lending Growth (YoY) 5.2%,5.2% previous

•Sweden Aug PPI (MoM) -0.2%,-0.7% previous

•Sweden Aug PPI (YoY) -4.6%,-4.9% previous

•EU Private Sector Loans (YoY) 3.0%,3.0% previous

•Italian Sep Consumer Confidence 103.4, 100.8 forecast, 100.8 previous

•Italian Sep Business Confidence 92.1, 87.5 forecast, 86.1 previous

•EU M3 Aug Money Supply (YoY) 9.5%,10.2% forecast, 10.2% previous

•EU Aug Loans to Non Financial Corporations 7.1%,7.0% previous

Looking Ahead – Economic Data (GMT)

•12:30 US Aug Goods Orders Non Defense Ex Air (MoM) 0.5% forecast, 1.9% previous

•12:30 US Aug Core Durable Goods Orders (MoM) 1.2%,2.6% previous

•12:30 US Aug Durables Excluding Defense (MoM) 10.1% previous

•12:30 US Aug Durable Goods Orders (MoM) 1.5% forecast, 11.4% previous

•13:30 Brazil Federal Tax Revenue 110.20B forecast, 115.90B previous

•15:00 Canada Jul Budget Balance -33.58B previous

•15:00 Canada Jul Budget Balance (YoY) -120.35B previous

•17:00 U.S. Baker Hughes Oil Rig Count 179 previous

•17:00 U.S. Baker Hughes Total Rig Count 255 previous

Looking Ahead – Events, Other Releases (GMT)

•13:00 US FOMC Member Williams Speaks

•13:00 US FOMC Member Williams Speaks


EUR/USD: The euro declined against dollar on Friday as fears a of second wave of COVID-19 infections in Europe rattled investor sentiment. France set a new record of daily COVID-19 infections and the country’s prime minister warned on Thursday that the government could be forced to reconfine areas. In a volatile week marked by worries about coronavirus restrictions hampering the European economic recovery ,euro was set for its worst week in over three months. Immediate resistance can be seen at 1.1686 (38.2% fib), an upside break can trigger rise towards 1.1731(38.2%fib).On the downside, immediate support is seen at 1.1619 (23.6% fib ), a break below could take the pair towards 1.1601 (lower BB).

GBP/USD: Sterling erased earlier gains in a choppy session on Friday as investors hoped Britain’s new scaled-back job support scheme will be followed by other fiscal measures, but feared talks about a move to sub-zero rates could also intensify. The outlook for sterling remains bleak as looming risk of a no-deal Brexit and new lockdown measures also weigh down the currency. Sterling was down 0.2% at $1.2718 against a stronger dollar, which is on course for its best week in six months. Sterling hit a two-month low of $1.2676 on Wednesday. Immediate resistance can be seen at 1.2752 (5DMA), an upside break can trigger rise towards 1.2822 (38.2% fib).On the downside, immediate support is seen at 1.2666(23.6%fib), a break below could take the pair towards 1.2600(Psychological level).

USD/CHF: The dollar rose against Swiss franc on Friday as stimulus hopes in the United States supported dollar across the board. Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, and House Speaker Nancy Pelosi reiterated she is ready to negotiate on it with the White House. That news helped assuage fears this week that recovery from the pandemic could be running out of steam, which shook markets. Immediate resistance can be seen at 0.9289 (Daily high), an upside break can trigger rise towards 0.9304 (23.6% fib).On the downside, immediate support is seen at 0.9254(38.2% fib), a break below could take the pair towards 0.9255(5 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Friday as dollar got a lift from hopes that U.S. fiscal stimulus talks would resume. The dollar is on track for it best week since early April, driven by risk aversion that made traders quit their dollar shorts as the outlook for the global economic recovery darkened with a second wave of COVID-19 cases in Europe. At 1230 GMT, the dollar index against a basket of currencies was down less than 0.1% on the day at 94.246 but up 1.3% on the week its biggest weekly jump in nearly six months. Strong resistance can be seen at 104.51 (38.2% fib), an upside break can trigger rise towards 105.00 (5DMA).On the downside, immediate support is seen at 105.15 (5DMA ), a break below could take the pair towards 104.45(23.6% fib).

Equities Recap

European stocks slipped on Friday, on course for their worst weekly showing in over three months, as fresh restrictions to contain a surge in coronavirus cases in the continent raised concerns about the pace of economic recovery.

At (GMT 12:30 ),UK’s benchmark FTSE 100 was last trading down at 0.38 percent, Germany’s Dax was down by 1.66 percent, France’s CAC was last down by 1.61percent.

Commodities Recap

Gold prices ticked up on Friday as investors took advantage of an easing dollar to buy the metal after a steep sell-off sent bullion to a near two-month low in the last session and set it on track for its biggest weekly fall in six.

Spot gold rose 0.1% to $1,869.79 per ounce by 0938 GMT, while U.S. gold futures were down 0.1% at $1,875.00.

Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply.

Brent crude was down 2 cents at $41.92 a barrel by 0113 GMT, while U.S. West Texas Intermediate (WTI) crude was 3 cents firmer at $40.34.

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