Contest Trader

Don't miss the chance to cash-in prizes totaling

$10.000
Register here for the Ultimate demo trading competition

EUR/USD Price Rebounds on Improved Risk-on Sentiment

EUR/USD Price Rebounds on Improved Risk-on Sentiment

The risk on Sentiment recovers slightly sending stocks higher and the US dollar lower. What moves the indices, FX, and commodities markets today?

Equities

US stock markets re-cooped on Monday some losses as US legislators near an agreement on the delayed fiscal stimulus package. However, investors still have too many reasons to worry due to Covid-19 surging numbers and the US elections uncertainty. Trump and Biden will have their first presidential debate on Wednesday at 1:00 AM (GMT).

The Democrats and Republican’s battle is not only on the first office in the united states but on getting the majority in the Senate and the House. A Democratic Congress with a Republican president or the other way around would not be the desired result for markets.

The house speaker Nancy Pelosi proposed a compromising deal of $2.2 trillion relief package however, it is not clear yet whether the deal will pass through as it is, or republicans will ask for more cost’s trimming. It is worth noting that, republicans suggested a $1.3 trillion package, while the Democrats asked for $3.4 trillion.

Stock Market

Change %

S&P 500

+2.0%

Dow Jones

+1.8%

NASDQ

+2.5%

Japan 225

+0.6%

DAX 30

+2.7%

FTSE 100

+1.3%

CAC 40

+1.8%

Currencies

A better risk-on sentiment paused the US dollar’s rally on Monday and led the US Dollar index to close in the red for the first time in nearly two weeks. Nonetheless, the technical outlook remains positive while above 94.04.

The EUR/USD found support on Monday around the previously discussed 1.1621 level. Currently, the pair eyes testing the resistance located at 1.1713. A daily close above that resistance would change the technical outlook to neutral, while a daily close below 1.1621 may send the pair even lower towards 1.1459.

GBP/USD reversed on Monday to the higher trading zone 1.2773 – 1.3048 and signaled a weaker bearish sentiment therefore, the price could pursue testing the high end of the zone.

Commodities

The oil price stabilized on Monday due to a better risk-on sentiment. Today, Brent oil has found support around $42.50, while the US Crude remained above $40 a barrel. That said, oil fundamentals are still weak as concerns of lower global demand weigh on investor's sentiment.

Gold price regained some territory on Monday due to a softer US dollar and steadied in the current trading zone $1,861 - $1,921. Thus, the price could be on the way for a test of the high end of the zone.

Looking Ahead

Markets expect the Eurozone consumer confidence index final read for September at 11:00 AM (GMT) and the German inflation rates at 1:00 PM, then-Fed members Williams and Harker speak at 2:15 PM and 2:30 PM respectively. At 3:00 PM eyes will be on the US consumer confidence index numbers for September and at 6:00 Fed Williams delivers a second speech.


Esta información/estudio preparada por Mahmoud Alkudsi no tiene en cuenta los objetivos específicos de inversión, la situación financiera o las necesidades particulares de una persona. El analista de estudios es, principalmente, responsable del contenido de este informe de estudio, en parte o en su totalidad, certifica que los puntos de vista sobre las compañías y sus valores expresados en este informe reflejan con exactitud sus puntos de vista personales, y como consecuencia, toda persona que actúe basándose en ellos lo hace bajo su propio riesgo.

El estudio proporcionado no constituye los puntos de vista de JME Financial Services (Pty) Ltd., ni es una invitación a invertir con JME Financial Services (Pty) Ltd. El analista de estudios certifica, además, que ninguna parte de su remuneración ha sido, es o será directa o indirectamente relacionada con recomendaciones o puntos de vista específicos expresados en este informe.

A partir de la fecha en la que se publique el informe, el analista de estudios y su esposo/a o familiares que dependen financieramente de dicho analista, no mantendrán intereses en los valores recomendados en este informe (“como “intereses” se incluyen la titularidad directa o indirecta de los valores).

El analista de estudios no está contratado por JME Financial Services (Pty) Ltd. Le animamos a buscar asesoramiento con un consejero financiero independiente con respecto a la idoneidad de la inversión, en virtud de otra participación separada, cuando considere oportuno que es conforme con sus objetivos específicos de inversión, su situación financiera o, sus necesidades financieras particulares antes de comprometerse a invertir..

Las leyes de la República de Sudáfrica regirán cualquier reclamación relacionada o que surja de los contenidos de la información/estudio proporcionado.