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Australia Economic Index Data Due On Wednesday

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Australia will on Wednesday see September figures for the leading economic index from Westpac Bank, highlighting a light day for Asia-Pacific economic activity. In August, the index was up 0.5 percent on month.

South Korea will release September numbers for producer prices, with forecasts suggesting an increase of 0.8 percent on month and 0.6 percent on year after adding 0.5 percent on month and losing 0.5 percent on year in August.

The material has been provided by InstaForex Company – www.instaforex.com

South Korea Producer Prices Rise 0.1% In September

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Producer prices in South Korea were up 0.1 percent on month in September, the Bank of Korea said on Wednesday – shy of expectations for an increase of 0.8 percent and up from 0.5 percent in August.

Individually, prices for agricultural, forestry & marine products rose 4.9 percent on month, while manufacturing products eased 0.1 percent, utilities added 0.3 percent and services fell 0.2 percent.

On a yearly basis, producer prices were down 0.4 percent versus expectations for a fall of 0.6 percent after slipping 0.5 percent in the previous month.

Individually, prices for agricultural, forestry & marine products rose 18.4 percent on year, while manufacturing products eased 3.0 percent, utilities shed 3.1 percent and services gained 1.6 percent.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Exhibits Weakness Against Most Of Its Peers

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The U.S. dollar was weak against most of its peers on Tuesday amid continued focus on U.S. stimulus talks and reports showing a surge in coronavirus cases across the world.

House Speaker Nancy Pelosi said today that Democrats and the White House have moved closer to a coronavirus stimulus agreement. Pelosi is scheduled to discuss again with Treasury Secretary Steve Mnuchin later in the afternoon.

Pelosi downplayed the importance of an end-of-Tuesday deadline she had set to strike an agreement and added that she would continue to discuss, saying lawmakers would have to come to a deal and write a bill before the end of the week in order to have a legistlation ready before Election Day.

Data released by the Commerce Department showed building permits in the United States rose 5.2% from a month earlier to a seasonally adjusted annual rate of 1.553 million in September of 2020, the highest level since March 2007. The rise was also above market expectations of 1.52 million.

Meanwhile, housing starts in the country rose 1.9% to a seasonally adjusted annual rate of 1.415 million units in September 2020, from a downwardly revised 1.388 million in the previous month. The rise in September was below market expectations of 1.457 million units.

The dollar index, which dropped to a low of 93.00, recovered slightly and was last seen at 93.10, down 0.35% from previous close.

Against the Euro, the dollar weakened to $1.1826, losing nearly 0.5% from Monday’s level.

The Pound Sterling was little changed, fetching $1.2949 a sterling, compared with $1.2947 on Monday. Earlier, the currency had firmed up to $1.2979 from $1.2911.

The sterling weakened after a Bank of England policymaker supported considering negative rates as the recent rise in Covid-19 cases could dent the economic recovery from the pandemic.

In an online speech, Gertjan Vlieghe said that additional monetary stimulus may be needed as the outbreak poses downside risks to the economy.

The Yen was slightly weak at 105.49 a dollar, recovering from 105.75. Japan posted a merchandise trade surplus of 674.978 billion yen in September, the Ministry of Finance said on Monday. That was shy of expectations for a surplus of 989.8 billion yen but still up from the 248.3 billion yen surplus in August.

The Aussie was weaker with the AUD-USD pair at 0.7047, down nearly 0.4%, after minutes from the Reserve Bank of Australia’s recent meeting showed that the Board discussed the scope of additional monetary easing to support jobs and the economy.

The Swiss franc was stronger at 0.9070 a dollar, firming up from 0.9099. Data from the Federal Customs Administration showed Swiss exports grew at a faster rate in the third quarter, rising by a real 9.9% sequentially, after a 12.2% decrease in the second quarter. Imports increased 9% in the third quarter, after a 13% decline in the previous quarter.

The Loonie firmed up to 1.3130 a dollar, rising nearly 0.5%, thanks to a surge in crude oil prices.

The material has been provided by InstaForex Company – www.instaforex.com

*South Korea Producer Prices +0.1% On Month, -0.4% On Year In September

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South Korea Producer Prices +0.1% On Month, -0.4% On Year In September

The material has been provided by InstaForex Company – www.instaforex.com

China House Price Data Due On Tuesday

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China will on Tuesday release September figures for house prices, highlighting a light day for Asia-Pacific economic activity. In August, prices were up 4.8 percent on year, while the one-year prime rate was 3.85 percent and the five-year prime rate was 4.65 percent.

Taiwan will provide September numbers for export orders, with forecasts suggesting an increase of 9.0 percent on year – slowing from 13.6 percent in August.

Hong Kong will see September results for unemployment; in August, the jobless rate was 6.1 percent.

The Reserve Bank of Australia will release the minutes from the bank’s monetary policy meeting on October 6. At the meeting, retained its benchmark interest rate at the record low 0.25 percent and also decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Stays Largely Sluggish Against Peers

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The U.S. dollar turned in a sluggish performance on Friday with updates on the stimulus front, retail sales data, surging coronavirus cases and cautious moves by traders ahead of the upcoming elections all playing a role in its movements.

A report from the Commerce Department said retail sales spiked by 1.9% in September after rising by 0.6% in August. Economists had expected retail sales to climb by 0.7%.

Closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, jumped by 1.4% in September after dipping by 0.3% in August.

The University of Michigan released a report showing a bigger than expected improvement in consumer sentiment in the month of October. The report said the consumer sentiment index rose to 81.2 in October from the final September reading of 80.4. Economists had expected the index to inch up to 80.5.

On the stimulus front, U.S. Senate Majority Leader Mitch McConnell rejected the push for a larger coronavirus stimulus deal, hours after President Trump told FOX Business he was willing to raise his spending offer above the White House’s current $1.8 trillion proposal.

The dollar index, which fell to 93.53 in early U.S. session, recovered to 93.72, but was still down by about 0.15% from previous close.

Against the Euro, the dollar was down marginally at 1.1720

Against Pound Sterling, it was down slightly at 1.2913

The Yen, which moved in a tight band between 1015.19 and 105.49 a dollar, was last seen at 105.40, compared to Thursday’s close of 105.45 a dollar.

The Aussie was down 0.23% with the AUD/USD pair trading at 0.7078

The Swiss franc was little changed at 0.9150 a dollar, while the Loonie was at 1.3189 a dollar, down 0.25% from 1.3221 on Thursday.

On the Covid-19 front, new coronavirus infections are surging rapidly in Europe, with several countries seeing steep spikes in new cases.

London will enter a tighter Covid-19 lockdown beginning at midnight today, while a nighttime curfew will take effect in some French cities starting Saturday.

The daily rise in infections surged past 7,000 for the first time ever in Germany, smashing the previous record set just the day before.

The material has been provided by InstaForex Company – www.instaforex.com

Treasuries Close Modestly Lower Following Early Volatility

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Treasuries showed a lack of direction in morning trading on Friday but saw modest weakness throughout the afternoon.

Bond prices lingered below the unchanged line going into the close of trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.3 basis points to 0.744 percent.

The modestly lower close by treasuries came following the release of a report from the Commerce Department showing much stronger than expected U.S. retail sales growth in the month of September.

A report from the Commerce Department said retail sales spiked by 1.9 percent in September after rising by 0.6 percent in August. Economists had expected retail sales to climb by 0.7 percent.

Excluding a jump in sales by motor vehicles and parts dealers, retail sales still surged up by 1.5 percent in September after climbing by a downwardly revised 0.5 percent in August.

Ex-auto sales were expected to rise by 0.5 percent compared to the 0.7 percent increase originally reported for the previous month.

Closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, jumped by 1.4 percent in September after dipping by 0.3 percent in August.

Michael Pearce, Senior U.S. Economist at Capital Economics, said the strong retail sales growth “suggests the economy was carrying more momentum into the fourth quarter than anticipated, defying fears that the expiry of enhanced unemployment benefits in the summer would harm the economy.”

Further reducing the appeal of safe havens like bonds, the University of Michigan released a report showing a bigger than expected improvement in consumer sentiment in the month of October.

The preliminary report said the consumer sentiment index rose to 81.2 in October from the final September reading of 80.4. Economists had expected the index to inch up to 80.5.

However, a report from the Federal Reserve showing an unexpected decrease in industrial production in the month of September helped limit the downside for treasuries.

The Fed said industrial production fell by 0.6 percent in September after rising by 0.4 percent in August. The drop surprised economists, who had expected production to increase by 0.5 percent.

Looking ahead to next week, traders are likely to keep an eye on the latest developments in Washington as well as reports on homebuilder confidence, housing starts, and existing home sales.

The material has been provided by InstaForex Company – www.instaforex.com

Oil Futures Settle Marginally Down

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Crude oil prices rebounded from the session’s lows but still ended marginally down on Friday as worries about demand outlook amid the continued surge in coronavirus cases weighed on the commodity.

Several countries across Europe have imposed fresh restrictions to curb the spread of virus infections.

Several states in the U.S. are seeing a surge in new cases and increasing number of hospitalizations over the past few days.

West Texas Intermediate Crude oil futures for November ended down $0.08 or about 0.2% at $40.88 a barrel, recovering from a low of $40.08 touched around mid-morning.

WTI crude oil futures for November gained about 0.7% in the week.

According to a report from Baker Hughes, the U.S. oil-ring count rose for a fourth week in a row, with active-oils count surging up by 12 to 205.

Active drilling-rig count rose by 13 to 282 this week, the report said.

Despite lingering concerns over demand recovery, OPEC and its allies plan to taper the ongoing oil production cuts as of January 2021, as initially agreed.

OPEC’s Secretary General Mohammad Barkindo said on the Energy Intellgency Forum on Thursday that keeping market stability is the top priority of the OPEC+ agreement, but added “We have no illusions this recovery will take a long time.”

An OPEC+ meeting, scheduled to take place on Nov 30 – Dec 1, will decide on the group’s next policy move with regard to production cuts. There is an OPEC+ meeting scheduled for Nov. 30 to Dec. 1 to set policy.

The material has been provided by InstaForex Company – www.instaforex.com

Singapore GDP Data Due On Wednesday

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Singapore will on Wednesday see advance Q3 numbers for gross domestic product, highlighting a modest day for Asia-Pacific economic activity.

GDP is expected to surged 35.3 percent on quarter after plummeting 42.9 percent in Q2. On a yearly basis, GDP is seen lower by 6.8 percent after sinking 12.6 percent in the three months prior.

The Bank of Korea will wrap up its monetary policy meeting and then announce its decision on interest rates; the central bank is widely expected to keep its benchmark lending rate unchanged at 0.50 percent.

Australia will see October results for the consumer confidence index from Westpac; in September, the index jumped 18 percent to a score of 93.8.

Japan will release final August numbers for industrial production, with forecasts suggesting an increase of 1.7 percent on month and a decline of 13.3 percent on year. That follows the 8.7 percent monthly increase and the 15.5 percent yearly drop in July.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Firms Up, Post Gains Against Peers

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The U.S. dollar gained in strength against its peers, recovering after recent weak spells, on safe-haven demand on continued impasse over a fiscal stimulus and on reports showing a surge in coronavirus cases in Europe.

The greenback’s gains were also due to news about Johnson & Johnson pausing its final-stage vaccine trial due to the unexplained illness of a participant.

According to reports, Italy is considering a ban on private parties following the recent spike in new coronavirus cases. France is set to impose new restrictions and the Czech Republic has announced that it would close bars and shift most schools to distance learning.

In U.S. economic news, the Labor Department released a report showing a modest increase in consumer prices in the month of September, with the uptick in prices matching economist estimates.

The report said the consumer price index rose by 0.2% in September after climbing by 0.4% in August.

The dollar index, which began to climb higher after the European session, rose to 93.60 around early afternoon, and was last seen at 93.52, up nearly 0.5% from previous close.

Against the Euro, the dollar firmed up to $1.1747, gaining nearly 0.6%

The Pound Sterling advanced $1.2923 a unit of Sterling, and retreating slightly from that level, was gaining about 1% at $1.2937.

The U.K. ILO jobless rate rose by 0.4 percentage points from the preceding quarter to 4.5% in three months to August, official data showed.

Total retail sales in the U.K. grew 5.6% annually in September versus a 0.6% drop a year ago, the British Retail Consortium said. This was the fastest growth since December 2009, excluding Easter distortions.

Against the yen, the dollar was stronger, fetching 105.48 yen a unit, compared with 105.32 yen Monday evening.

The Aussie shed nearly 0.7% with the AUD-USD pair at 0.7160, against previous close of 0.7209.

The Swiss franc was at 0.9149 a dollar, more than 0.6% down from Monday’s 0.9091, while the Loonie was weaker by 0.18% at 1.3137 a dollar.

The material has been provided by InstaForex Company – www.instaforex.com

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