America’s Roundup: Dollar on defensive amid weak U.S. data, increase in risk appetite, Wall Street ends mixed, Gold gains, Oil rallies past eight-month high on U.S. crude inventory draw, vaccine hopes-November 26th,2020

Market Roundup

•US Core PCE Price Index (MoM) .79B, 0.2% previous

•US Real Consumer Spending (Q3) 40.6%,40.7% previous

•US Core PCE Prices (Q3) 3.50%, 3.50%  forecast,3.50% previous

•US Corporate Profits (QoQ) (Q3) 27.5%, -10.7% previous

•US Wholesale Inventories (MoM) 0.9%               , 0.4% previous

•US Continuing Jobless Claims 6,071K, 6,020K forecast, 6,372K previous

•US Initial Jobless Claims 778K, 730K forecast, 742K previous

•US Jobless Claims 4-Week Avg  748.50K,742.00K previous              

•US Employment Benefits (QoQ) 0.60% previous

•US Employment Cost Index (QoQ)

•US Employment Wages (QoQ) 0.40% previous

•US Oct Core Durable Goods Orders (MoM)   0.5% forecast,  0.8% previous

•US Goods Orders (MoM) 1.0 forecast, 1.9% previous

•US Oct Durables Excluding Defense (MoM)  -79.36B previous

•US Oct Retail Inventories Ex Auto   -80.29B, 0.7%, 1.1% previous

•US GDP (QoQ) (Q3)  33.1%, 33.2% forecast, 33.1% previous

•US GDP Price Index (QoQ) (Q3) 3.7%, 3.7% forecast, 3.7% previous

•US GDP Sales (Q3) 25.6%,25.5% previous

•US Seevol Cushing Storage Report -0.920M,2.154M previous

•US Nov Michigan Consumer Sentiment   76.9 .77.0forecast, 81.8 previous

•US Nov Michigan Current Conditions 87.0, 85.8 forecast, 85.9 previous

•US Nov Michigan Consumer Expectations 70.5,71.3 forecast, 79.2 previous

•US Nov Michigan 5-Year Inflation Expectations 2.50%,  2.60% forecast, 2.40% previous

•US Nov Michigan Inflation Expectations 2.8%, 2.8% forecast, 2.6% previous

•US Oct Personal Income (MoM) -0.7%, 0.1% forecast , 0.9% previous

•US Oct Core PCE Price Index (YoY)  1.4%,1.4% forecast , 1.5% previous

•US Oct New Home Sales 999K, 970K forecast , 959K previous

•US New Home Sales (MoM) -0.3%,  1.5% forecast , -3.5% previous

•US Oct Real Personal Consumption (MoM) 0.5%,  1.2% previous

•US Oct Personal Spending (MoM)  0.5%,0.4% forecast , 1.4% previous

•US PCE price index (MoM)  0.0%,0.2% previous

•US PCE Price index (YoY)  1.2, 1.4 previous

•US PCE Core PCE Price Index (MoM)  0.0%, 0.1% forecast ,0.2 previous

•US Crude Oil Inventories -0.754M,0.127M forecast, 0.768M previous

•US Oct Dallas Fed PCE 0.60%,0.90% previous

Fxbeat

EUR/USD: The euro strengthened against dollar on Wednesday as investors switched their focus from vaccine hopes to disappointing U.S. jobs data and new COVID-19 lockdowns. Figures from the U.S. Labor Department’s weekly jobless claims suggested that an explosion in new COVID-19 infections and business restrictions were boosting layoffs and undermining the labor market recovery. The dollar index fell 0.151%, with the euro up 0.03% to $1.1916. U.S. financial markets will be closed on Thursday for the Thanksgiving holiday and U.S. bonds and stocks will trade on a partial schedule on Friday. Immediate resistance can be seen at 1.1923(23.6%fib), an upside break can trigger rise towards 1.1956 (Higher BB).On the downside, immediate support is seen at 1.1896 (50%fib), a break below could take the pair towards  1.1874 (61.8% fib).

GBP/USD: Sterling steadied on Wednesday, showing little reaction to finance minister Rishi Sunak’s plans to borrow amounts not seen in Britain’s peacetime history. Britain will borrow almost 400 billion pounds ($533.40 billion) in the current financial year to pay for the massive coronavirus hit to its economy, Sunak said on Wednesday.At the same time, he announced updated growth forecasts for the UK economy. Traders were looking for further progress towards a post-Brexit trade deal in talks between Britain and the European Union this week. Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3445 (Higher BB).On the downside, immediate support is seen at 1.3345(5 DMA), a break below could take the pair towards 1.3307 (38.2%fib).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, with the currency staying within reach of an earlier two-week high as oil prices rose and investors rebalanced their portfolios. The price of oil, one of Canada’s major exports, rose to the highest level in more than eight months, as data showing a surprise drop in weekly U.S. crude inventories extended a rally driven by hopes that a COVID-19 vaccine will boost fuel demand. The loonie   was last trading at 1.2990 to the greenback , having touched its strongest intraday level since Nov. 10 at 1.2982.  Immediate resistance can be seen at 1.3028 (38.2%fib), an upside break can trigger rise towards 1.3061(14DMA).On the downside, immediate support is seen at 1.2927 (23.6%fib), a break below could take the pair towards at 1.2900 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Wednesday as downbeat U.S. economic data and optimism about coronavirus vaccines weakened greenback. The number of Americans filing first-time claims for jobless benefits increased further last week, suggesting that an explosion in new COVID-19 infections and business restrictions were boosting layoffs and undermining the labor market recovery. Initial claims for state unemployment benefits increased 30,000 to a seasonally adjusted 778,000 for the week ended Nov. 21, the Labor Department said. Strong resistance can be seen at 104.64 (50% fib), an upside break can trigger rise towards 104.97(61.8% fib).On the downside, immediate support is seen at 104.29 (38.2%fib), a break below could take the pair towards 104.06 (5DMA).

Equities Recap

European shares eased slightly, while staying near nine-month highs on Wednesday as a relaxation of coronavirus restrictions in the region and growing hopes that a vaccine would soon be ready kept sentiment afloat.

UK’s benchmark FTSE 100 closed up by 1.63 percent, Germany’s Dax ended down by 1.51 percent, France’s CAC finished the day down by 1.90 percent.

The S&P 500 and the Dow retreated from record highs on Wednesday as a surprise rise in weekly jobless claims added to signs the recovery of the labor market was stalling amid a surge in COVID-19 infections..

 Dow Jones was trading  closed down by 0.58 percent, S&P 500 ended  lower by 0.16 percent, Nasdaq settled  up  by 0.48 percent.

Treasuries Recap

Most U.S. Treasury yields dipped on Wednesday after a slate of weak economic data including weekly jobless claims, but the 30-year yield received a boost from reports the Federal Reserve at its November policy meeting discussed lengthening the duration of its bond purchases.

The benchmark 10-year yield fell, last down half a basis point on the day to 0.878%. The two-year yield was also down half a basis point to 0.160%, leaving the yield curve roughly unchanged from Tuesday.

Commodities Recap

Gold regained momentum on Wednesday following a sharp slide toward the $1,800 pivot in the previous sessions, as an unexpected rise in U.S. jobless claims tempered some of the COVID-19 vaccine-led optimism on Wall Street.

Spot gold rose 0.3% to $1,812.66 an ounce at 10:15 a.m. EST (1515 GMT), having hit its lowest since July 17 at $1,800.01 on Tuesday. U.S. gold futures were up 0.4% at $1,811.00.

Oil prices climbed nearly 2% to their highest in more than eight months on Wednesday, as data showing a surprise drop in weekly U.S. crude inventories extended a rally driven by hopes that a COVID-19 vaccine will boost fuel demand.

Brent crude rose 75 cents, or 1.6%, to settle at $48.61 a barrel, its highest since early March.

U.S. West Texas Intermediate crude also closed at its highest since early March, rising 80 cents, or 1.8%, to $45.71.

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