mask COVID-19 Vaccine and the EU Summit to Drive the Market

19/ 11/ 2020

COVID-19 Vaccine and the EU Summit to Drive the Market

Daily Update - 19th November 2020

Yesterday’s Market

  • GBP   CPI (YoY) (Oct)
  • EUR   CPI (YoY) (Oct)
  • USD Building Permits (Oct)
  • CAD Core CPI (MoM) (Oct)
  • EUR   ECB President Lagarde Speaks  

Yesterday’s Explained

The UK economy announced the CPI numbers which reported positive and boosted the cable followed by the CPI from the Eurozone which remained unchanged. Lower than expected building permit report fromthe US and President Lagarde Speaks and her view on the economic recovery created a lot of volatility in the market.

 

Today’s Market

  •   AUD Employment Change (Oct)
  •   EUR EU Leaders Summit,ECB President Lagarde Speaks  
  •   USD Initial Jobless Claims, Philadelphia Fed Manufacturing Index (Nov), Existing Home Sales (Oct)

Today’s Focus

For the EUR, it’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction. The lack of stats will leave the EUR in the hands of COVID-19 news updates and Brexit chatter.  Today’s EU Summit, not only puts the Pound in the spotlight, however. Disagreements over the EU budget and Recovery Fund has also resurfaced. This is expected to be another hot topic at the Summit.

On the monetary policy front, ECB President Lagarde is due to speak later today. Any chatter on monetary policy will need monitoring. The big question will be whether the ECB will hold back following positive news from both Pfizer Inc. and Moderna Inc. on COVID-19 vaccine trials. Until now, Lagarde as suggested that the ECB will deliver.

For the Pound, it’s also a relatively quiet day ahead on the economic calendar. CBI Industrial Trend Orders for November are due out later today. 

It’s a busier day ahead for the U.S Dollar. October homes sales, November Philly FED Manufacturing, and the weekly jobless claim are in focus.Expect the Philly FED and jobless claims to have the greatest influence on the day.Away from the economic calendar, chatter from Capitol Hill and updates on COVID-19 will remain key drivers. Any progress towards a stimulus package would support riskier assets, though the chances of any progress remain slim. It’s all about the expectation for now.