Forex news and forecasts from 18-11-2020

ATTENTION: The content in the news and analytics feed is updated automatically, and reloading the page may slow down the process of new content appearing. We recommend that you keep your news feed open at all times to receive materials quickly.
Filter by currency
18.11.2020
20:50
Schedule for tomorrow, Thursday, November 19, 2020
Time Country Event Period Previous value Forecast
00:00 (GMT) U.S. FOMC Member Bostic Speaks    
00:30 (GMT) Australia Changing the number of employed October -29.5 -30
00:30 (GMT) Australia Unemployment rate October 6.9% 7.2%
07:00 (GMT) Switzerland Trade Balance October 2.7  
07:30 (GMT) Switzerland Industrial Production (YoY) Quarter III -8.6%  
08:00 (GMT) Eurozone ECB President Lagarde Speaks    
09:00 (GMT) Eurozone Current account, unadjusted, bln September 21.8 27.6
10:00 (GMT) Eurozone Construction Output, y/y September -0.9%  
11:00 (GMT) United Kingdom CBI industrial order books balance November -34 -39
13:30 (GMT) U.S. Continuing Jobless Claims November 6786 6470
13:30 (GMT) U.S. FOMC Member Mester Speaks    
13:30 (GMT) U.S. Initial Jobless Claims November 709 707
13:30 (GMT) U.S. Philadelphia Fed Manufacturing Survey November 32.3 22
15:00 (GMT) U.S. Leading Indicators October 0.7% 0.7%
15:00 (GMT) U.S. Existing Home Sales October 6.54 6.45
17:35 (GMT) U.S. FOMC Member Mester Speaks    
23:30 (GMT) Japan National CPI Ex-Fresh Food, y/y October -0.3% -0.7%
23:30 (GMT) Japan National Consumer Price Index, y/y October 0.0% -0.3%
20:01
DJIA -0.29% 29,695.67 -87.68 Nasdaq -0.05% 11,893.69 -5.65 S&P -0.32% 3,598.07 -11.46
17:00
European stocks closed: FTSE 100 6,385.24 +19.91 +0.31% DAX 13,201.89 +68.42 +0.52% CAC 40 5,511.45 +28.45 +0.52%
15:41
EIA’s report reveals smaller-than-forecast build in U.S. crude oil inventories

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories increased by 0.768 million barrels in the week ended November 13. Economists had forecast a build of 1.650 million barrels.

At the same time, gasoline stocks rose by 2.611 million barrels, while analysts had expected a gain of 0.087 million barrels. Distillate stocks plunged by 5.217 million barrels, while analysts had forecast a decrease of 1.457 million barrels.

Meanwhile, oil production in the U.S. surged by 400,000 barrels a day to 10.900 million barrels a day.

U.S. crude oil imports averaged 5.3 million barrels per day last week, down by 245,000 barrels per day from the previous week.

15:30
U.S.: Crude Oil Inventories, November 0.768 (forecast 1.65)
15:15
U.S.: Housing starts continue to defy expectations in October - TD Bank Financial Group

According to ActionForex, analysts at TD Bank Financial Group note that U.S. housing starts rose by 4.9% to 1.53 million units (annualized) in October, which was well above market expectations, calling for a milder increase of 3.3% to 1.46 million units. 

"As in previous months, the increase was driven by single-family starts, which rose by 6.4% to 1.18 million. By contrast, starts in the more volatile multi-family segment held flat at 351k for the second straight month."

"Overall, building permits were flat in October, after increasing by 4.7% the month prior. However, single-family permits continued their seven-month streak of advances, rising by a modest 0.6%. This was offset by a drop in multifamily permits (-1.6%), the third consecutive month of decline."

"Homebuilding continues to hold up. Overall, starts have increased in five of the last six months, powered by an impressive rebound in single-family starts. Construction in this segment has now surpassed its pre-crisis level by 14%, while multi-family starts have dipped 34% below after posting some improvement in the early months of the recovery. As discussed in a recent report, the recent trends exhibited by housing starts and permits speak to the growing shift in housing preferences toward bigger homes and more outdoor space."

"Buoyed by strong sales growth, builder confidence has soared to new all-time highs in each of the past three months. Despite this optimism, the near-term outlook presents some distinct challenges. With home prices continuing to climb higher, housing affordability has deteriorated, and fell to nearly a two-year low last quarter. Homebuilders have been faced with supply constraints which have pushed construction costs higher, contributing to higher prices. These factors could weigh on housing demand growth in upcoming months at the same time as the economic recovery loses some momentum as infections rise."


15:00
Germany's economy minister Altmaier: We make every effort to ensure that retailers can remain open
14:34
U.S. Stocks open: Dow +0.12%, Nasdaq 0.00, S&P 0.00%
14:27
Before the bell: S&P futures +0.21%, NASDAQ futures +0.09%

U.S. stock-index futures rose slightly on Wednesday, signaling market participants' attempt to resume a Covid-19 vaccine rally, paused on Tuesday. 


Global Stocks:

Index/commodity

Last

Today's Change, points

Today's Change, %

Nikkei

25,728.14

-286.48

-1.10%

Hang Seng

26,544.29

+129.20

+0.49%

Shanghai

3,347.30

+7.41

+0.22%

S&P/ASX

6,531.10

+32.90

+0.51%

FTSE

6,387.66

+22.33

+0.35%

CAC

5,512.77

+29.77

+0.54%

DAX

13,172.61

+39.14

+0.30%

Crude oil

$42.03


+1.45%

Gold

$1,874.00


-0.59%

14:26
EUR/USD to move back to 1.20 on a break of resistance at 1.1910/20 - Credit Suisse

FXStreet тщеуы that EUR/USD continues to push its way steadily higher and the spotlight turns back to key resistance at 1.1910/20, above which would suggest the consolidation phase from September is finally over for a resumption of the core bull trend for a move back to 1.2011, per Credit Suisse.

“After successfully holding above support at 1.1725 and with the EUR/USD pair back above its rising 13 and 55-day averages as well as price resistance at 1.1834/44, we continue to view this current phase as consolidation within the broader core uptrend.” 

“The immediate spotlight is now back on the recent high and potential trend resistance at 1.1910/20. Beyond here would suggest we are finally seeing the consolidation from early September coming to an end with resistance seen at 1.1962/66 next, then the 1.2011 September high and eventually our 1.2145/55 first core upside objective – the ‘neckline’ to the early 2018 top and 78.6% retracement of the 2018/2020 bear trend. Whilst we would expect a fresh phase of consolidation from here, our broader outlook stays positive for an eventual move above 1.2500.”

14:04
Wall Street. Stocks before the bell

(company / ticker / price / change ($/%) / volume)


3M Co

MMM

174.45

0.81(0.47%)

2076

ALCOA INC.

AA

18.3

0.03(0.16%)

35290

ALTRIA GROUP INC.

MO

41.35

0.16(0.39%)

13048

Amazon.com Inc., NASDAQ

AMZN

3,140.62

4.96(0.16%)

55737

American Express Co

AXP

116.6

0.12(0.10%)

13575

AMERICAN INTERNATIONAL GROUP

AIG

38.35

-0.07(-0.18%)

15339

Apple Inc.

AAPL

118.98

-0.41(-0.34%)

1108550

AT&T Inc

T

29.04

0.01(0.03%)

48084

Boeing Co

BA

224.81

14.76(7.03%)

3355411

Caterpillar Inc

CAT

172

0.09(0.05%)

4094

Chevron Corp

CVX

87.38

0.34(0.39%)

25670

Cisco Systems Inc

CSCO

41.73

-0.15(-0.36%)

38142

Citigroup Inc., NYSE

C

50.9

0.17(0.34%)

89465

Deere & Company, NYSE

DE

257

-1.21(-0.47%)

1281

E. I. du Pont de Nemours and Co

DD

63.6

0.44(0.70%)

1160

Exxon Mobil Corp

XOM

39.03

0.36(0.93%)

226877

Facebook, Inc.

FB

275.7

0.70(0.25%)

48385

FedEx Corporation, NYSE

FDX

285.26

0.21(0.07%)

12543

Ford Motor Co.

F

8.77

0.02(0.23%)

350913

Freeport-McMoRan Copper & Gold Inc., NYSE

FCX

21.01

-0.02(-0.10%)

64342

General Electric Co

GE

9.96

0.28(2.89%)

1915905

General Motors Company, NYSE

GM

42.47

0.49(1.17%)

125393

Goldman Sachs

GS

225.42

0.77(0.34%)

12802

Google Inc.

GOOG

1,772.00

1.85(0.10%)

3134

Home Depot Inc

HD

271.91

-0.56(-0.21%)

44501

HONEYWELL INTERNATIONAL INC.

HON

204.25

-1.08(-0.53%)

10890

Intel Corp

INTC

45.71

0.18(0.40%)

119311

International Business Machines Co...

IBM

118.25

0.55(0.47%)

11182

Johnson & Johnson

JNJ

150.23

0.88(0.59%)

9244

JPMorgan Chase and Co

JPM

116.21

0.10(0.09%)

42904

McDonald's Corp

MCD

216.12

0.11(0.05%)

2164

Merck & Co Inc

MRK

82.5

1.00(1.23%)

19150

Microsoft Corp

MSFT

214.26

0.36(0.17%)

111084

Nike

NKE

132.08

-0.13(-0.10%)

4706

Pfizer Inc

PFE

36.98

0.94(2.61%)

3746972

Starbucks Corporation, NASDAQ

SBUX

98.87

0.27(0.27%)

6542

Tesla Motors, Inc., NASDAQ

TSLA

448.5

6.89(1.56%)

1158747

The Coca-Cola Co

KO

53.7

0.02(0.04%)

10784

Twitter, Inc., NYSE

TWTR

42.95

0.10(0.23%)

39238

UnitedHealth Group Inc

UNH

352.08

-0.02(-0.01%)

4521

Verizon Communications Inc

VZ

60.8

0.05(0.08%)

3673

Visa

V

210.81

0.10(0.05%)

5609

Wal-Mart Stores Inc

WMT

149.98

0.61(0.41%)

89982

Walt Disney Co

DIS

144.62

0.12(0.08%)

45226

Yandex N.V., NASDAQ

YNDX

62.1

0.61(0.99%)

1080

14:02
Downgrades before the market open

Honeywell (HON) downgraded to Hold from Buy at HSBC Securities; target $200

Honeywell (HON) downgraded to Hold from Buy at Jefferies; target raised to $210

14:01
Upgrades before the market open

Boeing (BA) upgraded to Outperform from Neutral at Robert W. Baird; target raised to $306

Tesla (TSLA) upgraded to Overweight from Equal-Weight at Morgan Stanley; target raised to $540

14:00
Canada’s annual inflation unexpectedly accelerates in September

Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.4 percent m-o-m in September, following a 0.1 percent m-o-m drop in the previous month. This was the first m-o-m advance in consumer prices since June.

On the y-o-y basis, Canada’s inflation rate increased 0.7 percent last month after gaining 0.5 percent in September.

Economists had predicted inflation would increase 0.2 percent m-o-m and 0.4 percent y-o-y in October.

According to the report, prices rose in five of the eight major components on a year-over-year basis in October, led by gains in prices for food (+2.3 percent y-o-y), shelter (+1.8 percent y-o-y) and health and personal care (+1.8 percent y-o-y).

Meanwhile, the closely watched the Bank of Canada's core index rose 1.0 percent y-o-y in October, the same pace as in September. Economists had forecast an advance of 0.9 percent y-o-y.

13:46
U.S. housing starts rise more than forecast in October

The Commerce Department reported on Wednesday the housing starts climbed by 4.9 percent m-o-m in September to a seasonally adjusted annual pace of 1.530 million (the highest since February), while building permits unchanged at a seasonally adjusted annual rate of 1.545.

Economists had forecast housing starts increasing to a pace of 1.460 million units last month and building permits rising to a pace of 1.560 million units.

Data for September was revised to show homebuilding growing to a pace of 1.459 million units, instead of increasing at a rate of 1.415 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, rose 0.6 percent m-o-m to a rate of 1.120 million units in October, while approvals for the multi-family homes segment declined 1.6 percent m-o-m to a 425,000 unit-rate.

In the meantime, groundbreaking on single-family homes jumped 6.4 percent m-o-m to a rate of 1.179 million units in October, while housing starts for the multi-family remained unchanged m-o-m at a 351,000 -unit pace.

13:30
Canada: Bank of Canada Consumer Price Index Core, y/y, October 1% (forecast 0.9%)
13:30
Canada: Consumer price index, y/y, October 0.7% (forecast 0.4%)
13:30
Canada: Consumer Price Index m / m, October 0.4% (forecast 0.2%)
13:30
U.S.: Housing Starts, October 1.530 (forecast 1.46)
13:30
U.S. FDA will discuss COVID-19 vaccines on December 8-10 - CNBC reports, citing sources
13:30
U.S.: Building Permits, October 1.545 (forecast 1.56)
13:18
GBP/USD to challenge major resistance at 1.3473/1.3514 - Credit Suisse

FXStreet reports that economists at Credit Suisse apprise that GBP/USD is expected to see a break above 1.3310/19 for a test of long-term resistance at 1.3473/1.3514.

“GBP/USD is pushing steadily higher as expected after being supported above its 13-day average, now at 1.3162 and we remain of the view the recent pullback has been corrective only ahead of a retest of resistance at 1.3310/19 – the 78.6% retracement of the September fall.” 

“Beyond 1.3310/19 should reassert the rally for a move to 1.3403/09 next and eventually back to long-term price and ‘neckline’ resistance at 1.3473/1.3514. Above here, which we eventually look for is needed to see a major base secured, clearing the way for a move above 1.4300.” 

12:57
Germany's health minister Spahn: We have stopped exponential growth of infections but we're not where we need to be yet

  • However we respond to this pandemic there will be costs, the question is where the costs should fall
  • There will be no compulsory vaccination in this pandemic

12:49
European session review: GBP trades mostly higher amid increased hopes for UK-EU trade deal

TimeCountryEventPeriodPrevious valueForecastActual
07:00United KingdomRetail Price Index, m/mOctober0.3%-0.1%0%
07:00United KingdomProducer Price Index - Output (MoM)October-0.1%0.1%0.0%
07:00United KingdomProducer Price Index - Input (YoY) October-2.2%-2.5%-1.3%
07:00United KingdomProducer Price Index - Input (MoM)October0.3%0.1%0.2%
07:00United KingdomProducer Price Index - Output (YoY) October-1.7%-0.7%-1.4%
07:00United KingdomRetail prices, Y/YOctober1.1%1.2%1.3%
07:00United KingdomHICP ex EFAT, Y/YOctober1.3% 1.5%
07:00United KingdomHICP, m/mOctober0.4%-0.1%0%
07:00United KingdomHICP, Y/YOctober0.5%0.6%0.7%
10:00EurozoneHarmonized CPIOctober0.1%0.2%0.2%
10:00EurozoneHarmonized CPI ex EFAT, Y/YOctober0.2%0.2%0.2%
10:00EurozoneHarmonized CPI, Y/YOctober-0.3%-0.3%-0.3%
10:30United KingdomMPC Member Andy Haldane Speaks    


GBP rose against most of its major counterparts in the European session on Wednesday amid increased hopes that London and Brussels would come to an agreement on their future trade relations prior to Britain's formal exit from the block at the end of the year.

Those hopes have been fueled by recent optimistic media reports about progress in the UK-EU trade talks, positive comments from the UK officials, as well as the announcement that Dominic Cummings, who masterminded the 2016 Brexit referendum vote, will step down as Prime Minister Boris Johnson's top adviser by the end of the year. 

The UK's Business Secretary Alok Sharma said on Wednesday that Britain hoped to get a free trade agreement with the EU, but the block must understand "that the UK is a sovereign nation and that's the basis on which our arrangement with the EU is in the future."

The statement came after Bloomberg reported Tuesday, citing people familiar with trade negotiations, that London and Brussels could strike a deal early next week as the two sides edge closer to the agreement on the biggest sticking points, and the Sun reported that the UK’s chief Brexit negotiator David Frost told PM Boris Johnson there was a “possible landing zone” that could be reached as early as next Tuesday.

Investors also received the UK's consumer price data for October, which showed that the country's inflation accelerated more-than-expected to a three-month high last month. The Office for National Statistics (ONS) reported that the UK's consumer price index (CPI) rose 0.7% y/y in October, following a 0.5% y/y advance in September. This was the highest reading in three months, but well below the Bank of England's (BoE) target of 2 percent. Economists had forecast the CPI to increase 0.6% y/y in October.

12:22
U.S. weekly mortgage applications decline 0.3 percent

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. fell 0.3 percent in the week ended November 13, following a 0.5 percent drop in the previous week.

According to the report, applications to purchase a home rose 3.5 percent, while refinance applications decreased 1.8 percent.

Meanwhile, the average fixed 30-year mortgage rate edged up to 2.99 percent from a record low level of 2.98 percent.

“Housing demand remains supported by the ongoing recovery in the job market, and an increased appetite from households seeking more space because of the pandemic,” noted Joel Kan, MBA’s associate vice president of economic and industry forecasting.

11:56
Gold is neutral within the 1850-1973.80 limits - Commerzbank

FXStreet notes that gold (XAU/USD) has recently failed just ahead of the 1973.80 mid-September high but continues to hold over the 1850 low. For now, strategists at Commerzbank are neutral.

“Should a breach of the 1850 support be seen we would allow for further losses to the 200-day ma at 1792.24 and possibly the May high at 1765.61. This in turn protects the 1721.15 55-week ma.” 

“In order to regenerate upside interest, the market will need to regain the mid-September high at 1973.8, for a rally to the 78.6% retracement at 2025 which guards the target band of 2070/2088."

11:36
Japan: Full year GDP contraction seen at 5.5% - UOB

Japan: Full year GDP contraction seen at 5.5% - UOB

FXStreet reports that Senior Economist at UOB Group Alvin Liew assesses the latest GDP figures in the Japanese economy.

“Japan staged a strong rebound in 3Q following the pandemic-ravaged trough in 2Q. Its 1st preliminary estimate of 3Q 2020 GDP recorded a significant rebound in economic activity with a growth of 5% q/q (+21.4% annualized rate) strongest since 1980. Private consumption and external demand led the recovery of GDP but continued weakness in business spending and a drawdown in inventories damped the overall recovery.”

“Based on the significant improvement in the 3Q GDP and a milder rebound projection in 4Q, we now expect Japan’s full-year GDP to contract by 5.5% in 2020 (from -6% previously). We expect the GDP to grow at an above-potential rate of 2.8% in 2021 (down from 3.0% previously). The key risks to our outlook continue to be centred around COVID-19 developments. Downside risk is a repeat of (at least) some of the restrictive measures to contain COVID-19, and thus, reinflicting some the economic damage previously experienced in 2Q. On the other hand, the primary upside risk to the forecasts will be the successful and quick deployment of a vaccine against COVID-19.”

11:16
BoE's chief economist Haldane: Economic prospects next year are perhaps materially brighter than a few weeks ago

  • UK economy surpassed expectations in Q3
  • Economic prospects for Q4 are very uncertain
  • Economic activity very likely to be below levels at the start of the year
  • The potential macro-economic benefits of easing ZLB [zero-lower-bound] constraint appear to be significant
  • The macro-economic costs of ZLB constraint require thorough exploration
  • Three R’s – Recovery, Rebalancing, Revitalisation – are more important than ever; so too is the need for optimism about opportunities this crisis will serve up, as all crises do
  • Digital opportunities in the areas of payments and lending are large and could deliver lasting benefits to individuals and companies

10:58
Biden must get ‘creative’ to restore U.S. respect in Pacific region - ex-Fed official

CNBC reports that former Dallas Fed President Richard Fisher told that President-elect Joe Biden’s administration will have to get “creative” in its attempts to rebuild America’s relationship with trade partners in the Asia-Pacific region.

The comments from Fisher came days after China and 14 other countries in the region signed an agreement to form the world’s largest free-trade bloc. The U.S. was not included in the deal, which Fisher said was “not a good thing.” 

The U.S. had once been “viewed as the most important economy in the world. You couldn’t do anything without us. Well, they’ve done something without us in the Pacific region,” Fisher said, noting the participating countries represent almost one-third of the world’s population.

Fisher said Biden will have to work to overcome the approach to the Asia-Pacific region employed by President Donald Trump.

“It’s going to be very hard. I think the Biden administration is going to have to be very creative in coming up with a new way to figure out new relationships on other planes, not just tariff cuts, but show also that they are going to be rules based, which is what the Trump administration threw to the winds,” Fisher said.

10:41
USD to outperform EUR and GBP – HSBC

FXStreet reports that economists at HSBC continue to favour the USD over the EUR and GBP in the year ahead.

“As certain aspects of uncertainty lift going into 2021 – the US elections, optimism about a potential COVID-19 vaccine – we believe FX will shift away from recent Risk On-Risk Off (RORO) behaviour to idiosyncratic drivers. However, interest rate differentials, one of the key traditional FX drivers, may be less useful in the months ahead compared to during the Global Financial Crisis (GFC) recovery.”

“Our economists expect the UK and the Eurozone to fare the worst among G10 economies, while the US sits in the middle. Against this backdrop, we continue to favour a divergent outlook for the USD in G10 currencies in 2021. The USD is likely to underperform the AUD and NZD, but outperform the EUR and GBP.”

10:20
Eurozone annual inflation stabilized at -0.3% in October

According to the report from Eurostat, the euro area annual inflation rate was -0.3% in October 2020, stable compared to September. A year earlier, the rate was 0.7%. European Union annual inflation was 0.3% in October 2020, stable compared to September. A year earlier, the rate was 1.1%. Core CPI rose by 0.2% y/y versus +0.2% previous and +0.2% expectations. On a monthly basis, core CPI arrived at 0.1% versus 0.2% expected and -0.1% last.

The lowest annual rates were registered in Greece (-2.0%), Estonia (-1.7%) and Ireland (-1.5%). The highest annual rates were recorded in Poland (3.8%), Hungary (3.0%) and Czechia (2.9%). Compared with September, annual inflation fell in fifteen Member States, remained stable in two and rose in ten.

In October, the highest contribution to the annual euro area inflation rate came from food, alcohol & tobacco (+0.38 percentage points, pp), followed by services (+0.19 pp), non-energy industrial goods (-0.03 pp) and energy (-0.81 pp).

10:00
Eurozone: Harmonized CPI, Y/Y, October -0.3% (forecast -0.3%)
10:00
Eurozone: Harmonized CPI, October 0.2% (forecast 0.2%)
10:00
Eurozone: Harmonized CPI ex EFAT, Y/Y, October 0.2% (forecast 0.2%)
09:39
USD/CNH seen dropping to 6.5200 near-term – UOB

FXStreet reports that FX Strategists at UOB Group noted further downside remains in place for USD/CNH with the next target at the 6.5200 level.

Next 1-3 weeks: “We highlighted yesterday that ‘the rapid improvement in shorter-term momentum suggests that a break of 6.5475 would not be surprising’. We added, ‘the next support is at 6.5200 followed by a major level at 6.4960’. USD subsequently edged below 6.5475 (low of 6.5458) before recovering. Oversold shorter-term conditions could lead to a 1 to 2 days of consolidation. However, as long as 6.6000 (‘strong resistance’ level was at 6.6250 yesterday) is intact, USD is expected to weaken further to 6.5200.”

09:21
Europe's insurance deposit scheme still years away - ECB

Reuters reports that ECB bank supervisor Andrea Enria said that a European Deposit Insurance Scheme, long advocated by the ECB, is unlikely to be agreed on in the coming years.

"A fully fledged EDIS should remain the goal but will not be there in the coming months and years," Enria told.

The absence of the euro zone-wide insurance scheme is seen as a key impediment in the integration of the bank sector, which is now fragmented along national lines, keeping profitability and efficiency low.

08:59
USD: It’s not too soon to think about Fed hikes - BofA

eFXdata reports that Bank of America discusses the trajectory of the Fed policy path.

"Fed Chair Powell famously described the Fed's policy stance in June as "We're not even thinking about thinking about raising rates." But the market is thinking about it, and we are starting to see that dynamic come back in play," BofA notes. 

"While it seems almost crazy to imagine the Fed hiking rates, the fact is that 10y rates incorporate Fed policy expectations over the full span of the next 10 years, and it is not unreasonable to imagine the Fed embarking on a hiking cycle within 3 or 4 years of today, or even sooner if everything goes right with the pandemic and the economy. Currently, the market is pricing the first hike by 1Q24," BofA adds.

08:41
Gold to face further downside pressure in the immediate term – HSBC

FXStreet reports that strategists at HSBC believe more immediate-term downside is likely but the longer-term outlook remains positive for the yellow metal.

“Some of the risks (that had built into the market and propelled gold higher) came out of the market. Two outright bearish developments – a surging USD and jump in US Treasury yields – pulled the rug from under gold.”

“The psychological relief and a shift in risk sentiment may still weigh on gold in the immediate term.”

“The broader economic climate (such as high debt, likely defaults and vulnerable asset price declines) is still gold-friendly. The risk now is whether the pandemic worsens and how quickly a vaccine can be made available – assuming it does provide protection from COVID-19. The fiscal and monetary response to the pandemic globally will remain highly accommodative. A Democratic administration with the commensurate likelihood of bigger fiscal stimulus packages to come will likely buoy gold. All this should continue to provide gold with a reason to go higher in the medium to longer-term.”

08:20
2 things must happen for the yuan to go global - BNP Paribas

CNBC reports that the chief executive of BNP Paribas China said that China’s push to internationalize the yuan will be driven by two things — funds flowing into the country and a relaxation of rules that restrict the Chinese currency from moving abroad.

China maintains strict control of the onshore yuan’s trading rate on the mainland. The offshore yuan —which trades outside the mainland, mostly in Hong Kong and Singapore — is influenced by demand and supply, but that volume is comparatively small.

The yuan isn’t expected to unseat the dollar anytime soon, but its prominence is rising in global reserves and international trade owing to Beijing’s growing economic influence. The yuan is said to be the sixth most used currency in international payments and is used to settle about 20% of China’s trade.

Globalization of the yuan “will be driven by two things: One is the incoming funds into this country, and then the Chinese government and also the [People’s Bank of China] need to relax to allow the renminbi to go outside,” CG Lai said.

China had previously eased trading restrictions around the yuan between 2010 and 2015, according to Lai. He explained that with funds now flowing into China, the country’s central bank “will have the flexibility to allow the renminbi to go outside.”

07:59
Asian session review: the dollar declined against most major currencies

TimeCountryEventPeriodPrevious valueForecastActual
00:30AustraliaWage Price Index, q/qQuarter III0.2%0.2%0.1%
00:30AustraliaWage Price Index, y/yQuarter III1.8%1.5%1.4%
07:00United KingdomRetail Price Index, m/mOctober0.3%-0.1%0%
07:00United KingdomProducer Price Index - Output (MoM)October-0.1%0.1%0.0%
07:00United KingdomProducer Price Index - Input (YoY) October-2.2%-2.5%-1.3%
07:00United KingdomProducer Price Index - Input (MoM)October0.3%0.1%0.2%
07:00United KingdomProducer Price Index - Output (YoY) October-1.7%-0.7%-1.4%
07:00United KingdomRetail prices, Y/YOctober1.1%1.2%1.3%
07:00United KingdomHICP ex EFAT, Y/YOctober1.3% 1.5%
07:00United KingdomHICP, m/mOctober0.4%-0.1%0%
07:00United KingdomHICP, Y/YOctober0.5%0.6%0.7%


During today's Asian trading, the US dollar declined against the euro, yen and pound.

On Tuesday, statistics showed a slowdown in US retail sales growth to 0.3% in October from 1.6% in September. Commenting on retail sales data, the chairman of the Federal reserve Bank of Atlanta, Raphael Bostic, noted that compared to the strong recovery that began in May and was observed in the summer, the statistical data in the fourth quarter may be weak.

Meanwhile, Fed Chairman Jerome Powell said that the increase in the incidence of coronavirus will pose a serious risk to the economy in the coming months. He also noted that it is too early to say whether the appearance of the vaccine will change the forecasts.

The yen rose against the dollar. Exports from Japan fell in October for the 23rd consecutive month, but the pace of decline slowed significantly due to strong demand in all regions of the world, with the exception of Europe, amid a gradual recovery of economies after the shock caused by the COVID-19 pandemic.

The pound also rose. Investors continue to follow the discussions on a trade agreement between London and Brussels. Britain's chief negotiator David Frost has informed Prime Minister Boris Johnson that a deal could be reached early next week.

The ICE index, which tracks the US dollar against six currencies (the euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.17%.

07:40
EU passenger car registrations declined in October - ACEA

According to the report from European Automobile Manufacturers' Association (ACEA), In October 2020, the EU passenger car market slipped back into negative territory, after posting the first increase of the year in September. Registrations of new cars declined by 7.8% to 953,615 units last month, as several European governments reimposed restrictions to battle a second wave of the coronavirus. With the exception of Ireland and Romania, losses were posted in all EU markets, including the four major ones. Demand fell markedly in Spain (-21%) while more moderate decreases were observed in France (-9.5%) and Germany (-3.6%). In Italy, on the other hand, demand remained almost unchanged (-0.2%) compared to October 2019 levels.

From January to October, new-car registrations fell by 26.8% in the European Union. Ten months into the year the impact of COVID-19 on car demand remains unprecedented. Indeed, across the EU some 8 million passenger cars were registered from January to October, which translates into a decline of more than 2.9 million units compared to the same period last year. Looking at the major EU markets, Spain saw the steepest drop (-36.8%) so far this year, followed by Italy (-30.9%), France (-26.9%) and Germany (-23.4%).

07:21
UK consumer price growth accelerated more than expected in September

According to the report from Office for National Statistics, the Consumer Prices Index (CPI) 12-month rate was 0.7% in October 2020, up from 0.5% in September. Economists had expected a 0.6% increase.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 0.9% in October 2020, up from 0.7% in September 2020.

The largest contribution to the CPIH 12-month inflation rate in October 2020 came from recreation and culture (0.26 percentage points).

Clothing; food; and furniture, furnishings and carpets made the largest upward contributions (with the contribution from these three groups totalling 0.16 percentage points) to the change in the CPIH 12-month inflation rate between September and October 2020.

These were partially offset by downward contributions of 0.06 and 0.04 percentage points, respectively, from the recreation and culture, and transport groups.

Eight CPIH items were unavailable to UK consumers in October, unchanged from September and accounting for 1.1% of the CPIH basket by weight; for October, we collected a weighted total of 90.0% of comparable coverage collected previously (excluding unavailable items).

07:11
Options levels on wednesday, November 18, 2020 EURUSD GBPUSD

EUR/USD

Resistance levels (open interest**, contracts)

$1.1948 (3962)

$1.1922 (2015)

$1.1903 (2741)

Price at time of writing this review: $1.1876

Support levels (open interest**, contracts):

$1.1823 (119)

$1.1799 (687)

$1.1768 (2431)


Comments:

- Overall open interest on the CALL options and PUT options with the expiration date December, 4 is 102382 contracts (according to data from November, 17) with the maximum number of contracts with strike price $1,1200 (6547);


GBP/USD

Resistance levels (open interest**, contracts)

$1.3373 (1645)

$1.3351 (2186)

$1.3333 (1472)

Price at time of writing this review: $1.3266

Support levels (open interest**, contracts):

$1.3202 (480)

$1.3184 (1000)

$1.3139 (688)


Comments:

- Overall open interest on the CALL options with the expiration date December, 4 is 23908 contracts, with the maximum number of contracts with strike price $1,3500 (2735);

- Overall open interest on the PUT options with the expiration date December, 4 is 27296 contracts, with the maximum number of contracts with strike price $1,2500 (2670);

- The ratio of PUT/CALL was 1.14 versus 1.13 from the previous trading day according to data from November, 17

 

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

07:03
United Kingdom: Retail Price Index, m/m, October 0% (forecast -0.1%)
07:02
United Kingdom: Retail prices, Y/Y, October 1.3% (forecast 1.2%)
07:02
United Kingdom: Producer Price Index - Output (MoM), October 0.0% (forecast 0.1%)
07:02
United Kingdom: Producer Price Index - Input (MoM), October 0.2% (forecast 0.1%)
07:01
United Kingdom: Producer Price Index - Input (YoY) , October -1.3% (forecast -2.5%)
07:01
United Kingdom: HICP ex EFAT, Y/Y, October 1.5%
07:01
United Kingdom: HICP, m/m, October 0% (forecast -0.1%)
07:01
United Kingdom: Producer Price Index - Output (YoY) , October -1.4% (forecast -0.7%)
07:01
United Kingdom: HICP, Y/Y, October 0.7% (forecast 0.6%)
02:30
Commodities. Daily history for Tuesday, November 17, 2020
Raw materials Closed Change, %
Brent 43.68 -0.5
Silver 24.44 -1.21
Gold 1880.025 -0.46
Palladium 2319.06 -0.45
00:30
Stocks. Daily history for Tuesday, November 17, 2020
Index Change, points Closed Change, %
NIKKEI 225 107.69 26014.62 0.42
Hang Seng 33.42 26415.09 0.13
KOSPI -3.88 2539.15 -0.15
ASX 200 13.9 6498.2 0.21
FTSE 100 -55.96 6365.33 -0.87
CAC 40 11.52 5483 0.21
Dow Jones -167.09 29783.35 -0.56
S&P 500 -17.38 3609.53 -0.48
NASDAQ Composite -24.79 11899.34 -0.21
00:30
Schedule for today, Wednesday, November 18, 2020
Time Country Event Period Previous value Forecast
00:30 (GMT) Australia Wage Price Index, q/q Quarter III 0.2% 0.2%
00:30 (GMT) Australia Wage Price Index, y/y Quarter III 1.8% 1.5%
07:00 (GMT) United Kingdom Retail Price Index, m/m October 0.3% -0.1%
07:00 (GMT) United Kingdom Producer Price Index - Output (MoM) October -0.1% 0.1%
07:00 (GMT) United Kingdom Producer Price Index - Input (YoY) October -3.7% -2.5%
07:00 (GMT) United Kingdom Producer Price Index - Input (MoM) October 1.1% 0.1%
07:00 (GMT) United Kingdom Producer Price Index - Output (YoY) October -0.9% -0.7%
07:00 (GMT) United Kingdom Retail prices, Y/Y October 1.1% 1.2%
07:00 (GMT) United Kingdom HICP ex EFAT, Y/Y October 1.3%  
07:00 (GMT) United Kingdom HICP, m/m October 0.4% -0.1%
07:00 (GMT) United Kingdom HICP, Y/Y October 0.5% 0.6%
10:00 (GMT) Eurozone Harmonized CPI October 0.1% 0.2%
10:00 (GMT) Eurozone Harmonized CPI ex EFAT, Y/Y October 0.2% 0.2%
10:00 (GMT) Eurozone Harmonized CPI, Y/Y October -0.3% -0.3%
10:30 (GMT) United Kingdom MPC Member Andy Haldane Speaks    
13:15 (GMT) Canada Gov Council Member Wilkins Speaks    
13:30 (GMT) U.S. Housing Starts October 1.415 1.46
13:30 (GMT) U.S. Building Permits October 1.545 1.56
13:30 (GMT) Canada Consumer Price Index m / m October -0.1% 0.2%
13:30 (GMT) Canada Bank of Canada Consumer Price Index Core, y/y October 1% 0.9%
13:30 (GMT) Canada Consumer price index, y/y October 0.5% 0.4%
15:00 (GMT) U.S. FOMC Member Charles Evans Speaks    
15:30 (GMT) U.S. Crude Oil Inventories November 4.278  
17:15 (GMT) U.S. FOMC Member Williams Speaks    
18:20 (GMT) U.S. FOMC Member James Bullard Speaks    
00:30
Australia: Wage Price Index, Quarter III 0.1 (forecast 0.2%), q/q
00:30
Australia: Wage Price Index, Quarter III 1.4 (forecast 1.5%), y/y
00:15
Currencies. Daily history for Tuesday, November 17, 2020
Pare Closed Change, %
AUDUSD 0.73007 -0.26
EURJPY 123.564 -0.32
EURUSD 1.18609 0.05
GBPJPY 138.021 0.03
GBPUSD 1.32481 0.4
NZDUSD 0.6891 -0.18
USDCAD 1.31 0.22
USDCHF 0.91143 -0.1
USDJPY 104.174 -0.37

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location