Posted at 27 October 2020 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index slumped after White House economic adviser Larry Kudlow told reporters that talks over a coronavirus relief package have slowed, though House Speaker Nancy Pelosi remained hopeful an agreement can be reached before the Nov. 3 elections. The greenback against a basket of currencies traded 0.05 percent down at 93.02, having touched a low of 92.47 on Wednesday, its lowest since September 2.
EUR/USD: The euro rose, reversing most of its previous session losses, as the greenback eased amid growing wariness about the U.S. presidential election. The European currency traded 0.2 percent higher at 1.1833, having touched a high of 1.1880 on Wednesday, its highest since September 16. Investors’ attention will remain on a series of economic data from the Eurozone economies, ECB Bank Lending Survey, EZ Private Loans and M3 Money Supply, ahead of the U.S. Durable Goods Orders ex Transportation, Durable Goods Orders ex Defense, Durable Goods Orders, Nondefense Capital Goods Orders ex Aircraft, Housing Price Index, S&P/Case-Shiller Home Price Indices, Richmond Fed Manufacturing Index and Consumer Confidence. Immediate resistance is located at 1.1860, a break above targets 1.1880. On the downside, support is seen at 1.1783 (10-DMA), a break below could drag it below 1.1766 (21-DMA).
USD/JPY: The dollar slumped as market participants tread cautiously ahead of the U.S. election. With eight days to go until the U.S. election, President Donald Trump addressed boisterous rallies in Pennsylvania on Monday, while Biden made a low-key appearance in the state considered crucial to the chances of victory for both men. The major was trading 0.1 percent down at 104.76, having hit a low of 104.34 on Wednesday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Durable Goods Orders ex Transportation, Durable Goods Orders ex Defense, Durable Goods Orders, Nondefense Capital Goods Orders ex Aircraft, Housing Price Index, S&P/Case-Shiller Home Price Indices, Richmond Fed Manufacturing Index and Consumer Confidence. Immediate resistance is located at 105.05, a break above targets 105.20. On the downside, support is seen at 104.45, a break below could take it near at 104.08.
GBP/USD: Sterling rose, halting a 3-day losing streak, as an extension to Brexit talks gave markets some cause for optimism about a deal being reached before the Dec. 31 deadline. The major traded 0.05 percent higher at 1.3030, having hit a high of 1.3152 on Wednesday, it’s highest since September 7. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3060, a break above could take it near 1.3082. On the downside, support is seen at 1.2974, a break below targets 1.2958 (21-DMA). Against the euro, the pound was trading 0.2 percent down at 90.82 pence, having hit a high of 90.11 on Wednesday, it’s highest since October 14.
AUD/USD: The Australian dollar gained after data showed profits at China's industrial firms rose for a fifth straight month in September, but at a slower pace as factory-gate deflation and rising raw materials costs undercut a recovery in the manufacturing sector. The Aussie trades 0.1 percent up at 0.7129, having hit a high of 0.7158 on Friday, it’s highest since October 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7160, a break above could take it near 0.7186. On the downside, support is seen at 0.7084, a break below targets 0.7047.
NZD/USD: The New Zealand dollar advanced towards the 0.6700 handle, as the greenback eased across the board. The Kiwi traded 0.1 percent higher at 0.6684, having touched a high of 0.6704 on Friday, its highest level since September 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6720, a break above could take it near 0.6737. On the downside, support is seen at 0.6653 (5-DMA), a break below could drag it below 0.6637 (10-DMA).
Equities Recap
Asian shares slumped as soaring global coronavirus cases and slow progress on a U.S. stimulus deal dented risk sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.4 percent.
Tokyo's Nikkei fell 0.05 percent to 23,485.80 points, Australia's S&P/ASX 200 index declined 1.7 percent to 6,051.00 points. South Korea's KOSPI declined 0.6 percent to 2,330.84 points.
Shanghai composite index rose 0.1 percent to 3,254.32 points, while CSI 300 index traded 0.2 percent up at 4,699.28 points.
Hong Kong’s Hang Seng traded 0.6 percent lower at 24,780.18 points. Taiwan shares shed 0.3 percent to 12,875.01 points.
Commodities Recap
Crude oil prices steadied after tumbling to a 3-week low in the prior session as a surge in global coronavirus cases hit prospects for crude demand while supply is rising. International benchmark Brent crude was trading 0.7 percent up at $40.76 per barrel by 0603 GMT, having hit a low of $40.20 on Monday, its lowest since October 5. U.S. West Texas Intermediate was trading 0.7 percent higher at $38.83 a barrel, after falling as low as $38.31 on Monday, its lowest since October 5.
Gold prices surged after a fresh wave of coronavirus infections raised concerns over a global economic recovery and bolstered the metal’s safe-haven appeal. Spot gold was trading 0.4 percent higher ar $1,908.99 per ounce by 0611 GMT, having hit a low of $1891.50 on Thursday, its lowest since October 15. U.S. gold futures were up 0.3 percent at $1,911.20.
Treasuries Recap
The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.798 percent and the 30-year yield at 1.591 percent.