Focus remains on US

October 14, 2020

A relatively quiet day coming up, as far as volume of data is concerned.

The USD re-asserted its dominance overnight, sending paired currencies down. The EURUSD started the day at $1.18093 and ticked up to a high of $1.18149 shortly afterwards. The rot set in a couple of hours later and continued for the rest of the day, with the euro eventually bottoming-out at $1.17299 late. It has come off those lows slightly and is now trading at $1.17411.  The GBPUSD opened the day at $1.30627 and nudged up to a high of $1.30678 early. It traded in a tight range for the first half of the day before falling away over the back half of the session. The pound hit a low of $1.29209 late and is now trading at $1.29285.

Indices gave up some of the gains made on Monday, with both the Dow and Dax taking a hit. After opening at 28,920.86, the Dow lifted to a high of 28,941.69 early. Things went south from there, albeit at a gradual pace. The Dow hit a low of 28,606.15 late in the day but has since bounced back and is now trading at 28,749.30. The Dax began the day at 13,146.95 and rose to an early high of 13,164.85. Things turned ugly soon after as the sell-off began in earnest, with the German index dropping to a low of 12,953.77. It is now trading at 12,996.50.

The day ahead sees a low volume of data being released today but we again turn our attention to the US. They will be publishing PPI & Core PPI data, with analysts expecting both the PPI and Core PPI figures to come in at 0.2%, down from 0.3% and 0.4% respectively.

Other data published today includes:

Japan – Revised Industrial Production

Australia – RBA Governor Philip Lowe speaks

Europe – European Industrial Production

UK – MPC Member Any Haldane speaks

Canada – Governing Council Member Timothy Lane speaks

US – Federal Budget Balance, FOMC Members Richard Clarida, Randal Quarles and Robert Kaplan speak



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