Market Roundup
• US Sep Chicago Fed National Activity 0.27, 0.79 previous
• French 3-Month BTF Auction -0.638%,-0.685% previous
• French 6-Month BTF Auction -0.652%, -0.678% previous
• French 12-Month BTF Auction -0.673%,-0.646% previous
• US Sep New Home Sales (MoM) 2.8% forecast, 4.8% previous
• US Sep New Home Sales 959K, 1,025K forecast, 1,011K previous
• US Oct Dallas Fed Mfg Business Index 19.8,13.6 previous
• US 3-Month Bill Auction 0.100%, 0.100% previous
• US 6-Month Bill Auction 0.110%, 0.115% previous
Looking Ahead - Economic events and other releases (GMT)
•01:30 Chinese Sep Industrial profit (YoY) 19.10% previous
•01:30 Chinese Sep Industrial profit YTD -4.4% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Monday after a survey showed German business morale fell in October. German business morale fell for the first time in six months in October, weighed down by companies’ concerns about rising coronavirus infection rates that are making them more cautious about the coming months. The Ifo institute said its business climate index fell to 92.7 from a downwardly revised 93.2 in September. An index tracking the U.S. dollar against a basket of currencies was last up 0.2% at 92.95. Euro the most traded currency pair and part of the index fell 0.3% at 1.1831.Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling edged lower against the dollar on Monday as markets turned cautious over new lockdown restrictions in Europe and record-high daily virus cases in the United States. U.S. COVID-19 cases hit record highs over the weekend, with hospitalisations at a two-month high. In Europe, Spain announced a new state of emergency and Italy imposed new lockdown measures to curb a second wave of infections. Immediate resistance can be seen at 1.3072 (Daily high),an upside break can trigger rise towards 1.3092 (23.6%fib)On the downside, immediate support is seen at 1.3016 (50%fib), a break below could take the pair towards 1.2995 (9 DMA).
USD/CAD: The Canadian dollar weakened by the most in nearly five weeks against its U.S. counterpart on Monday, as investors grew more worried about the outlook for the global economy and eyed a Bank of Canada interest rate decision this week. The Bank of Canada is due to make an interest rate decision and update its economic outlook on Wednesday. The central bank has said it will leave rates at a record low of 0.25% until its 2% inflation target is achieved sustainably, which it does not expect for at least two years. The Canadian dollar was trading 0.6% lower at 1.3197 to the greenback, its biggest drop since Sept. 23. The currency touched its weakest intraday level since Oct. 16 at 1.3225. Immediate resistance can be seen at 1.3262(50%fib), upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3192 (38.2%fib), a break below could take the pair towards 1.3106 (23.6%fib).
USD/JPY: The dollar edged higher against the Japanese yen Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders switch to greenback. U.S. reported 79,852 new infections on Saturday, close to the previous day's record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards. France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe. Strong resistance can be seen at 105.00 (50%fib), an upside break can trigger rise towards 105.15 (9 DMA).On the downside, immediate support is seen at 104.74 (38.2% fib), a break below could take the pair towards 106.30 (23.6% fib).
Equities Recap
European stocks fell on Monday as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped after it cut its 2020 outlook.
UK's benchmark FTSE 100 closed down by 1.16 percent, Germany's Dax ended down by 3.71 percent, France’s CAC finished the day down by 1.91 percent.
U.S. stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
Dow Jones closed down by 2.29 percent, S&P 500 ended down by 1.86 percent, Nasdaq finished the day down by 1.64 percent.
Treasuries Recap
Longer-term U.S. Treasury yields fell on Monday as investors sold stocks amid a fast-rising case count in the COVID-19 pandemic and as stimulus talks in Washington dragged on.
The benchmark 10-year yield was down 4.3 basis points in afternoon trading at 0.7977%, well below its four-month high reached on Friday.
Commodities Recap
Oil prices fell more than 3% on Monday, extending last week’s losses as coronavirus cases continued to surge in the United States and Europe, while Libya’s rebound in crude production raised fears of oversupply.
Brent dropped $1.31, or 3.1%, to settle at $40.46 a barrel. U.S. West Texas Intermediate (WTI) fell $1.29, or 3.2%, to settle at $38.56 a barrel. Both contracts fell almost 2.5% last week.
Gold edged up on Monday as growing fears over a second COVID-19 wave countered a firmer dollar and a lack of headway on a U.S. stimulus package to combat the economic impact of the pandemic.
Spot gold was 0.1% higher at $1,902.06 per ounce by 1221 GMT, regaining some ground after earlier falling to its lowest since Oct. 15, at $1,890.19.
