America’s Roundup: Dollar set for best week in three weeks on stimulus uncertainty, virus concerns, Wall Street gains, Gold dips, Oil dips on COVID-19 resurgence, fears of more supply-October 17th,2020

Market Roundup

•Canada Aug Foreign Securities Purchases by Canadians 5.74B, 1.29B previous

•Canada Aug Foreign Securities Purchases 15.50B, -8.52B previous

•US Sep Retail Sales Ex Gas/Autos (MoM) 1.5% 0.7% previous

•US Sep Retail Sales (MoM) 1.9%,0.7% forecast, 0.6% previous

•US Sep Retail Sales (YoY) 5.36%, 2.57% previous

•US Sep Core Retail Sales (MoM) 1.5%%, 0.5% forecast, 0.7% previous

•Canada Aug Manufacturing Sales (MoM) -2.0% -1.4% forecast,

• US Sep Manufacturing Production (MoM) -2.0%, 0.7% forecast, 1.0% previous

• US Sep Industrial Production (MoM) -0.3%, 0.5% forecast, 0.4% previous

• US Sep Industrial Production (YoY-7.28%,-7.73% previous

• US Sep Capacity Utilization Rate 71.5%,71.9% forecast, 71.4% previous

• US Oct Michigan Current Conditions 84.9, 88.5 forecast, 87.8 previous

• US Aug Retail Inventories Ex Auto 0.5%, 0.9% previous

• US Oct Michigan Consumer Expectations 78.8 , 76.5, 75.6 previous

• US Oct Michigan Consumer Sentiment 81.2, 80.5 forecast, 80.4 previous

• US Aug Business Inventories (MoM) 0.4% forecast, 0.1% previous

Looking Ahead Economic Data (GMT)

•No data ahead

Looking Ahead – Events, Other Releases (GMT)

•No significant events

Currencies Summaries

EUR/USD: The euro gained against dollar on Friday as increased caution over a global surge in coronavirus cases and fading prospects for a U.S. stimulus package before the Nov. 3 election weighed on dollar. The greenback pared some of the day’s losses after strong U.S. retail sales data helped assuage concerns about the health of the U.S. consumer. The U.S. dollar index was 0.1% lower at 93.676. The index is up 0.7%, for the week, its best weekly gain in three weeks. The Euro was last trading slightly higher at 0.2% to $1.1718.Immediate resistance can be seen at 1.1747 (50%fib), an upside break can trigger rise towards 1.1796 (61.8%fib).On the downside, immediate support is seen at 1.1702 (38.2%fib), a break below could take the pair towards 1.1638 (23.6%fib).

GBP/USD: Sterling rose slightly on Friday but was still on track to end the week on a loss, as markets waited for Britain to say whether it would continue with Brexit negotiations after the European Union leaders’ summit left the UK disappointed. Britain left the European Union in January. Since then, both sides have been locked in negotiations to try and reach a trade deal before the status-quo transition period ends on Dec. 31.British Prime Minister Boris Johnson will set out his approach to Brexit later on Friday. He had previously set Oct. 15 as a deadline after which the UK would quit negotiations if a deal had not been reached. Immediate resistance can be seen at 1.2957 (11DMA), an upside break can trigger rise towards 1.2988 (38.2%fib).On the downside, immediate support is seen at 1.2906 (23.6%fib), a break below could take the pair towards 1.2883(21DMA).

USD/CAD: The Canadian dollar gained ground against its broadly weaker U.S. counterpart on Friday as signs of progress on developing a COVID-19 vaccine boosted investor sentiment, with the loonie clawing back some of this week’s decline . U.S. crude oil futures settled 0.2% lower at $40.88 a barrel on concern that a spike in COVID-19 cases in Europe and the United States would curtail demand in two of the world’s biggest fuel consuming regions. The Canadian dollar was trading 0.3% higher at 1.3192 to the greenback , having traded in a range of 1.3177 to 1.3237.Immediate resistance can be seen at 1.3220 (9 DMA), an upside break can trigger rise towards 1.3261(21 DMA).On the downside, immediate support is seen at 1.3183 (23.6%fib), a break below could take the pair towards 1.3089 (Lower BB).

USD/JPY: The dollar edged lower against the Japanese yen on Friday as investors sought safe havens, fearing that a resurgence in coronavirus cases and a lack of additional U.S. fiscal stimulus would hobble the world economy. U.S. President Donald Trump’s offer on Thursday to raise the size of a fiscal stimulus package to win the support of Republicans and Democrats helped improve market sentiment, though many investors still believe a deal is unlikely before the Nov. 3 election. Meanwhile, An unexpected rise in U.S. weekly jobless claims figures added to worries about a sputtering world economy, especially in the face of a spike in COVID-19 cases in Europe. Strong resistance can be seen at 105.52 (11 DMA), an upside break can trigger rise towards 105.82 (38.2%fib).On the downside, immediate support is seen at 105.10 (23.6% fib), a break below could take the pair towards 104.82 (Higher BB).

Equities Recap

European shares bounced on Friday on hopes that a vaccine for the novel coronavirus could be available in the United States before the end of the year, with a clutch of upbeat quarterly earnings also lifting sentiment after a torrid week.

UK’s benchmark FTSE 100 closed up by 1.49 percent, Germany’s Dax ended up by 1.62 percent, France’s CAC finished the day down by 2.04 percent.

U.S. stocks advanced on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and upbeat retail sales data and brought buyers back to the market.

Dow Jones closed up by 0.39%percent, S&P 500 closed up by 0.02% percent, Nasdaq settled down by 0.36 % percent.

Treasuries Recap

U.S. Treasury yields edged higher on Friday after data showed U.S. retail sales increased more than expected in September and consumer confidence improved in early October.

Retail sales rose 1.9% last month as consumers bought motor vehicles and clothing, dined out and splashed out on hobbies, the Commerce Department said on Friday.

Commodities Recap

Oil prices edged lower on Friday, dragged down by concerns that a spike in COVID-19 cases in the United States and Europe will continue to drag on demand in two of the world’s biggest fuel-consuming regions.

Brent crude futures fell 23 cents to settle at $42.93 a barrel, and U.S. West Texas Intermediate (WTI) crude futures dropped 8 cents to settle at $40.88 a barrel.Brent rose 0.2% for the week, while WTI was on track to gain 0.7%.

Gold fell and was on the way to its first weekly decline in three weeks on Friday, as fading chances of a U.S. stimulus agreement before the Nov. 3 presidential election dented the metal’s appeal as an inflation hedge.

Spot gold fell 0.3% to $1,901.87 per ounce by 1:32 p.m. EDT (1732 GMT). Bullion is down 1.4% so far this week. U.S. gold futures settled 0.1% lower at $1,906.40.

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