Home Forex News Euro Modestly Edge Higher In Anticipation Of US Fiscal Stimulus.

Euro Modestly Edge Higher In Anticipation Of US Fiscal Stimulus.

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  • British Pound remains choppy after Brexit talks remains shaky

The euro is pared yesterday’s losses in line with broad dollar weakness. Much of the EU is in lockdown amid a second wave surge in the pandemic. However, Hungary and Poland are blocking the $2 trillion in disbursements related to EU’s economic relief package, as they both argue against linking any transfers to the “rule of law” – basically, a fight against the EU’s core democratic values.

The UK pound fell for the first time in a week, as pressures increase with the ongoing UK-EU trading talks. EU leaders are pushing the European Commission to prepare for a “no-deal” outcome, as the December 31 deadline approaches.

US Stocks end firmer on Thursday

The US stock market finished firmly into positive territory on Thursday, 19 November 2020, as risk sentiments improved after Senate Democratic Minority Leader Chuck Schumer said Republican Majority Leader Mitch McConnell had agreed to revive talks to craft a new fiscal relief package.

However, market gains capped after Treasury Secretary Mnuchin later asked the Federal Reserve to return money earmarked under the March pandemic relief act for emergency lending to businesses, nonprofits and local governments. Further, weighing on the market sentiment was reports of soaring coronavirus cases and an unexpected rise in weekly jobless claims which raised fears of stalling growth in the world’s largest economy.

US Leading Economic Index Climbs 0.7% In October- US leading economic index climbed by 0.7 percent in October, according to a report released by the Conference Board on Thursday. The report said the coincident economic index also increased by 0.5 percent in October after rising by 0.4 percent in September. Meanwhile, the lagging economic index inched up by 0.1 percent in October following a 0.3 percent drop in the previous month.

US Weekly Jobless Claims Recover From Eight-Month Low- US jobless claims climbed to 742,000 in the week ended November 14th, an increase of 31,000 from the previous week’s revised level of 711,000, the Labor Department reported on Thursday. In the previous week, jobless claims fell to their lowest level since hitting 282,000 in the week ended March 14th. Meanwhile, the report said the less volatile four-week moving average fell to 742,000, a decrease of 13,750 from the previous week’s revised average of 755,750. The Labor Department said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also tumbled by 429,000 to 6.372 million in the week ended November 7th.

US Existing Home Sales Jump To 14-Year High In October- US existing home sales jumped by 4.3 percent to an annual rate of 6.85 million in October after soaring by 9.9 percent to a revised rate of 6.57 million in September, a report released by the National Association of Realtors on Thursday showed. With the unexpected spike, existing home sales reached their highest level since February of 2006. Existing home sales were up by 26.6 percent compared to the same month a year ago. The report said the median existing home price was $313,000 in October, up 0.5 percent from $311,400 in September and up 15.5 percent from $271,100 in the same month a year ago. Meanwhile, housing inventory at the end of October totaled 1.42 million units, down 2.7 percent from 1.46 million in September and down 19.8 percent from 1.77 million in October of 2019.

TREND : WEAK BULLISH

Time                                      :        20/11/2020

Pivot                                     :      1.1862

Technical View                     :        LONG ABOVE 1.1882

Target                                   :        1.1902, 1.1923, 1.1937, 1.1983

Technical View                      :       SHORT BELOW 1.1842

Target                                   :        1.1823, 1.1781, 1.1763, 1.1731

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