Market Roundup
•Weekly jobless claims unexpectedly rise to 870,000
•U.S. new-home sales vault to near 14-year high
•US Initial Jobless Claims 870K, 840K forecast, 860K previous
•US Continuing Jobless Claims 12,580K,12,300K forecast, 12,628K previous
•US Jobless Claims 4-Week Avg 878.25K,912.00K previous
•Belgium Sep NBB Business Climate -10.8, -11.0 forecast, -12.0 previous
•Russia Central Bank Reserves (USD) 590.9B,591.8B previous
• US Aug New Home Sales 1,011K, 895K forecast, 901K previous
• US New Home Sales (MoM) 4.8%,-0.1% forecast, 13.9% previous
• US Natural Gas Storage 66B, 78B forecast, 89B previous
• US Sep KC Fed Manufacturing Index 11,23 previous
• US Sep KC Fed Composite Index18, 14 previous
Looking Ahead - Economic Data (GMT)
•23:01 UK Sep GfK Consumer Confidence -27 forecast, -27 previous
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 1.2% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro declined against dollar on Thursday as signs of an economic slowdown in Europe and concerns about the fallout from a second wave of coronavirus infections weighed on euro. A surge in COVID-19 cases in Europe risks becoming a deadly double epidemic of flu and coronavirus infections, EU health officials warned on Thursday as they urged Europeans and their governments not to let their guard down. Sentiment for the euro has suffered a big blow after surveys released on Wednesday showed new restrictions to quell a resurgence in coronavirus infections slammed the euro zone’s services industry into reverse. Immediate resistance can be seen at 1.1642 (Daily high), an upside break can trigger rise towards 1.1724(38.2%fib).On the downside, immediate support is seen at 1.1625 (23.6% fib ), a break below could take the pair towards 1.1600 (Psychological level).
GBP/USD: Sterling lost some steam but remained above $1.27 on Thursday after British finance minister Rishi Sunak announced a new job support scheme but said unemployment would rise. In a choppy session, fears that unemployment will rise when the furlough scheme ends next month kept investors nervous, as Sunak announced more government support to rescue businesses and jobs but said the British government will support only viable jobs. The British currency was also under pressure after the Bank of England did not exclude the possibility of negative rates, which is seeing as a downside risk for sterling.BoE Governor Andrew Bailey said on Thursday the bank is seeking anwers on the suitability of sub-zero rates. Immediate resistance can be seen at 1.2786 (5DMA), an upside break can trigger rise towards 1.2827 (38.2%fib).On the downside, immediate support is seen at 1.2668(23.6% fib), a break below could take the pair towards 1.2600(Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil prices rose and Ottawa raised support for the unemployed, with the loonie bouncing back from an earlier seven-week low, which it hit as investors weighed rising coronavirus cases.U.S. crude oil futures settled nearly 1% higher at $40.31 a barrel as a drop in U.S. crude inventories offset worries a new wave of coronavirus cases in Europe could hurt the outlook for demand. The Canadian dollar was trading 0.3% higher at 1.3349 to the greenback, which was the biggest gain among G10 currencies. Immediate resistance can be seen at 1.3362 (38.2%fib), an upside break can trigger rise towards 1.3420(Sep24 th high).On the downside, immediate support is seen at 1.3322 (50%fib), a break below could take the pair towards 1.3292 (50%fib).
USD/JPY: The dollar rose against the Japanese yen on Thursday concern grew over the resilience of an economic recovery in the United States and Europe amid a second wave of coronavirus infections. The dollar benefited from another spike in coronavirus cases in Europe, which boosted its safe-haven appeal, while Federal Reserve policymakers called on the U.S. government to provide more fiscal support, fuelling a bout of selling in risky assets overnight. Against a basket of six other currencies , the dollar edged up 0.1% to a two-month high at 94.50. It is up nearly 2% so far this week as economic momentum shows signs of fading. Strong resistance can be seen at 105.51 (38.2% fib), an upside break can trigger rise towards 105.87 (55 DMA).On the downside, immediate support is seen at 104.98 (5DMA ), a break below could take the pair towards 104.46(23.6% fib).
Equities Recap
A sell-off in global risk assets drove European equities to near three-month lows on Thursday, as the absence of fresh stimulus for the U.S. economy and a second wave of coronavirus cases raised fears of a slowing global recovery.
UK's benchmark FTSE 100 closed down by 1.30 percent, Germany's Dax ended down by 0.29 percent, France’s CAC finished the day down by 0.83 percent.
Wall Street rallied in a rocky session on Thursday as beaten-down technology shares gained favor after data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims rose unexpectedly.
Dow Jones closed up by 0.20% percent, S&P 500 closed up by 0.30% percent, Nasdaq settled up by 0.37% percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as labor market data signaled the economic recovery may be running out of gas, but moved off lows after a stronger-than-expected report on the housing sector.
The yield on 10-year Treasury notes was down 0.7 basis points to 0.669%.
Commodities Recap
Gold prices reversed course and turned positive on Thursday, after touching a two-month low, as the dollar retreated slightly and as Federal Reserve officials reaffirmed to keeping monetary policy loose.
Spot gold rose 0.6% to $1,874.93 per ounce as of 1:46 p.m. EDT (1746 GMT). U.S. gold futures for December settled up 0.5% at 1,876.9.
Oil futures fell on Thursday on concerns the economic recovery in the United States, the world’s biggest oil consumer, is slowing as the coronavirus outbreak lingers and a resurgence in European cases led to new travel restrictions there.
U.S. West Texas Intermediate (WTI) crude futures fell 36 cents, or 0.9%, to $39.57 a barrel at 0217 GMT, while Brent crude futures fell 28 cents, or 0.7%, to $41.49 a barrel.
