Posted at 30 October 2020 / Categories Market Roundups
Market Roundup
Economic Data Ahead
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DXY: The dollar index nudged lower after rising to a 1-month peak in the previous session on data showing the U.S. economy grew at a record pace for the third quarter and an improving trend in jobless claims. U.S. gross domestic product rebounded at a 33.1 percent annualised rate last quarter, while 751,000 people in the United States filed for state unemployment benefits in the week ended Oct. 24, compared with 791,000 the previous period. The greenback against a basket of currencies traded 0.1 percent down at 93.85, having touched a high of 94.10 on Thursday, its highest since September 30.
EUR/USD: The euro steadied after tumbling to a 1-month low in the prior session after the European Central Bank clearly signalled it will provide more stimulus at its next meeting to contain the growing fallout from a second wave of coronavirus infections. The European currency traded 0.05 percent higher at 1.1679, having touched a low of 1.1650 the day before, its lowest since September 28. Investors’ attention will remain on a series of economic data from the Eurozone economies, EZ Consumer Price Index, Gross Domestic Product s.a., Unemployment Rate and ECB's De Guindos speech, ahead of the U.S. Personal Consumption Expenditures - Price index, Core Personal Consumption Expenditures - Price Index, personal income, personal spending, Chicago Purchasing Managers' Index and Michigan Consumer Sentiment Index. Immediate resistance is located at 1.1703, a break above targets 1.1734. On the downside, support is seen at 1.1651, a break below could drag it below 1.1626.
USD/JPY: The dollar slumped amid growing uncertainty surrounding Tuesday’s U.S. presidential election, while coronavirus fears continue to loom over market. President Donald Trump's chief economic adviser said that any deal on coronavirus relief legislation would have to wait for now. Global daily coronavirus cases rose by over 500,000 for the first time, with France and Germany going back into coronavirus lockdowns next week. The major was trading 0.4 percent down at 104.19, having hit a low of 104.02 on Thursday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Personal Consumption Expenditures - Price index, Core Personal Consumption Expenditures - Price Index, personal income, personal spending, Chicago Purchasing Managers' Index and Michigan Consumer Sentiment Index. Immediate resistance is located at 104.85 (10-DMA), a break above targets 105.05. On the downside, support is seen at 104.00, a break below could take it near at 103.88.
GBP/USD: Sterling plunged, extending losses for the third straight session, undermined by a lack of Brexit-related headlines as Britain and the European Union have just two months to reach a post-Brexit trade agreement before a status-quo transition period ends on Dec. 31. The major traded 0.2 percent lower at 1.2906, having hit a low of 1.2880 on Thursday, it’s lowest since October 16. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2975 (21-DMA), a break above could take it near 1.3003 (10-DMA). On the downside, support is seen at 1.2862, a break below targets 1.2844. Against the euro, the pound was trading 0.2 percent down at 90.50 pence, having hit a high of 90.06 the day before, it’s highest since September 8.
AUD/USD: The Australian dollar declined, hovering towards a 3-month low as the Reserve Bank of Australia is likely to expand government bond purchases by about AUD100 billion (USD71.29 billion) and trim its cash rate as well as the target for 3-year government bond yields by 15 basis points to 0.1 percent when it meets at its monetary policy meeting next Tuesday. The Aussie trades 0.1 percent down at 0.7021, having hit a low of 0.7002 on Thursday, it’s lowest since July 20. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7068, a break above could take it near 0.7090 (5-DMA). On the downside, support is seen at 0.7002, a break below targets 0.6984.
NZD/USD: The New Zealand dollar eased, weighed down by fears of the U.S. stimulus deadlock and the coronavirus concerns. The Kiwi traded 0.2 percent lower at 0.6614, having touched a low of 0.6596 on Thursday, its lowest level since October 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6673, a break above could take it near 0.6704. On the downside, support is seen at 0.6601, a break below could drag it below 0.6573.
Equities Recap
Asian shares plunged amid concerns over next week’s U.S. presidential election and a shaky global economic outlook.
MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.1 percent.
Tokyo's Nikkei fell 1.5 percent to 22,977.13 points, Australia's S&P/ASX 200 index slumped 0.6 percent to 5,927.60 points. South Korea's KOSPI eased 2.1 percent to 2,276.90 points.
Shanghai composite index declined 1.7 percent to 3,227.95 points, while CSI 300 index traded 1.6 percent down at 4,697.86 points.
Hong Kong’s Hang Seng traded 1.7 percent lower at 24,161.98 points. Taiwan shares shed 0.9 percent to 12,546.34 points.
Commodities Recap
Crude oil prices steadied after slumping to a 5-month low in the prior session on lockdowns in Europe and rising cases elsewhere. International benchmark Brent crude was trading 1.6 percent up at $38.12 per barrel by 0516 GMT, having hit a low of $36.62 on Thursday, its lowest since May 29. U.S. West Texas Intermediate was trading 0.4 percent lower at $35.95 a barrel, after falling as low as $34.95 on Thursday, its lowest since June 15.
Gold prices steadied after falling to a 1-month low hit in the previous session, as the dollar strengthened and hopes of an immediate U.S. coronavirus aid package waned. Spot gold was trading 0.1 percent higher at $1,869.88 per ounce by 0543 GMT but was on track to post its worst week in over a month. U.S. gold futures were down 0.1 percent at $1,866.20.
Treasuries Recap
The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.813 percent and the 30-year yield at 1.592 percent.