U.S. equity-index futures retreated after a public dispute between Treasury and the Federal Reserve over emergency pandemic programs rattled investors already concerned about the economic impact of the resurgent virus. The dollar edged up.

The Stoxx Europe 600 Index opened higher, as healthcare and industrial shares rallied. U.K. software publisher Sage Group Plc plunged more than 10% after an earnings miss. Stocks slipped in Australia and saw modest gains in Hong Kong and China. Treasuries were little changed.

FX Overnight News:

  • The dollar has had a couple of competing influences overnight, resulting in traders taking a cautious stance.
  • U.S. Treasury Secretary Steven Mnuchin called an end to some of the Federal Reserve's pandemic lending, as he asked for $455 billion allocated to the Treasury under the CARES Act to be re-appropriated for other spending. The central bank openly disagreed with the move.
  • This was the first sign of a rift between these two essential bodies and sparked concern from some investors who had counted on central bank support, helping the safe-haven dollar.
  • This move overturned the earlier weakness in the greenback after earlier reports that U.S. Senate Republican and Democrat leaders had agreed to resume negotiations on another coronavirus stimulus package.
  • Weekly initial claims numbers had risen on Thursday for the first time in five weeks as the restrictions caused by the surge in Covid-19 cases halted the recovery in the employment market.
  • California ordered a curfew placed on all indoor social gatherings and non-essential outside activities, while the country’s top public health agency pleaded with Americans not to travel for Thanksgiving.

FX Overnight Volatility:

Today's Economic Calendar:

Chart of the Day:

Source: Bloomberg, Investing.com, Finviz, Koyfin

Posted on

November 20, 2020


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