Posted at 10 November 2020 / Categories Market Roundups
Market Roundup
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DXY: The dollar index held firm amid expectations of better global trade ties and more monetary stimulus under U.S. President-elect Joe Biden. The greenback against a basket of currencies traded flat at 92.70, having touched a low of 92.13 on Monday, its lowest since September 1.
EUR/USD: The euro steadied after tumbling from an over 2-month peak in the prior session on data showing investor morale in the euro zone fell for a second consecutive month in November. The European currency traded 0.2 percent higher at 1.1833, having touched a high of 1.1920 earlier, its highest since September 2. Investors’ attention will remain on a series of economic data from the Eurozone economies, and EZ ZEW Survey – Economic Sentiment, ahead of the U.S. JOLTS Job Openings and Fed's Quarles speech. Immediate resistance is located at 1.1860, a break above targets 1.1890. On the downside, support is seen at 1.1786, a break below could drag it below 1.1766 (21-DMA).
USD/JPY: The dollar eased after rising to a 3-week peak in the previous session on news of the development of a coronavirus vaccine which raised optimism of a global economic recovery. On Monday, U.S. drugmaker Pfizer Inc and German partner BioNTech SE said a large-scale clinical trial showed their vaccine was more than 90 percent effective in preventing COVID-19. The major was trading 0.4 percent down at 104.98, having hit a high of 105.64 on Monday, its highest since October 20. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. JOLTS Job Openings and Fed's Quarles speech. Immediate resistance is located at 105.52, a break above targets 105.74. On the downside, support is seen at 104.58, a break below could take it near at 104.36 (10-DMA).
GBP/USD: Sterling rose, hovering towards a 2-month high hit in the prior session, as global risk appetite rose on news of progress in Pfizer’s COVID-19 vaccine trials, as well as Democrat Joe Biden’s U.S. election win. However, ongoing Brexit negotiations still weighed on the British pound. The major traded 0.2 percent higher at 1.3187, having hit a high of 1.3208 on Monday, 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 1.3220, a break above could take it near 1.3243. On the downside, support is seen at 1.3125, a break below targets 1.3101. Against the euro, the pound was trading 0.05 percent down at 89.68 pence, having hit a high of 89.45 on Wednesday, it’s highest since September 7.
AUD/USD: The Australian dollar steadied near a 2-month peak as risk sentiment improved after U.S. drugmaker Pfizer Inc said its experimental COVID-19 vaccine was more than 90 percent effective, based on initial trial results. The Aussie trades 0.05 percent up at 0.7281, having hit a high of 0.7339 on Monday, it’s highest since September 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7315, a break above could take it near 0.7345. On the downside, support is seen at 0.7254, a break below targets 0.7230 (5-DMA).
NZD/USD: The New Zealand dollar rallied, extending gains for the seventh straight session, as the Reserve Bank of New Zealand is likely to hold the official cash rate (OCR) at its current level this week, although details of a new stimulus tool could still signal a gradual shift to negative rates in 2021. The Kiwi traded 0.2 percent higher at 0.6830, having touched a high of 0.6855 on Monday, its highest level since March. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6860, a break above could take it near 0.6890. On the downside, support is seen at 0.6785, a break below could drag it below 0.6750.
Equities Recap
Asian shares surged as global investors applauded progress in the development of a coronavirus vaccine which lifted confidence in a world economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 percent.
Tokyo's Nikkei surged 0.5 percent to 24,972.22 points, Australia's S&P/ASX 200 index rallied 0.7 percent to 6,340.50 points. South Korea's KOSPI gained 0.2 percent to 2,451.45 points.
Shanghai composite index fell 0.4 percent to 3,361.61 points, while CSI 300 index traded 0.6 percent up at 4,952.91 points.
Hong Kong’s Hang Seng traded 0.4 percent higher at 26,131.72 points. Taiwan shares shed 0.4 percent to 13,081.72 points.
Commodities Recap
Crude oil prices declined as concerns over fuel demand in the near term in coronavirus-hit Europe and the United States returned after an overnight surge on progress towards a COVID-19 vaccine. International benchmark Brent crude was trading 0.05 percent down at $41.98 per barrel by 0440 GMT, having hit a high of $43.46 on Monday, its highest since October 9. U.S. West Texas Intermediate was trading 0.2 percent lower at $39.74 a barrel, after rising as high as $41.29 on Monday, its highest since October 21.
Gold prices surged after falling as much as 5.2 percent in the previous session, as hopes of more U.S. stimulus measures to cushion the impact of rising COVID-19 cases nudged investors towards the precious metal. Spot gold rose 1.2 percent to $1,883.74 per ounce by 0446 GMT, having hit a low of $1850.53 on Monday, its lowest since September 28. U.S. gold futures were up 0.8 percent at $1,869.40.
Treasuries Recap
The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.913 percent and the 30-year yield at 1.682 percent.