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EUR/USD Tests a Key Support and Eyes on the US presidential Debate

EUR/USD Tests a Key Support and Eyes on the US presidential Debate

The US Congress could be on track to approve the relief package, what moves the indices, FX, and commodities markets today?

Equities

Asian stock markets rose on Monday however, eyes are focused on the US presidential debate the Coronavirus updates. The Covid-19 sharp rise worldwide and the restrictive measures taken in the UK and elsewhere in Europe weighed significantly on the global economic recovery hopes.

The house speaker Nancy Pelosi was optimistic about agreeing on the relief package. Democrats were asking for a $3.4 trillion deal, while Republicans offered only $1.3 trillion. Both sides could meet halfway and agree on a $2.2 trillion package.

Stock Market

Change %

S&P 500

+1.0%

Dow Jones

+0.8%

NASDQ

+1.6%

Japan 225

+0.5%

DAX 30

-0.8%

FTSE 100

+0.4%

CAC 40

-0.2%


Currencies

The US dollar rose against a basket of currencies and hit an over nine-week high at 94.78. The main reason behind this rally was the risk-off sentiment in the market driven by the surge of Coronavirus cases, as such some traders seemed to close their short positions on the US dollar. The US Dollar index may continue its rally towards 95.50.

On the other hand, the EUR/USD outlook remains negative while below 1.1713. A daily close below 1.1621 could send the pair even lower towards 1.1459.

GBP/USD remained last week under pressure due to a strong US dollar and the uncertainty of achieving a free trade deal. The EU/UK will resume negotiations this week. The technical outlook of Cable remains negative while below 1.2773.

Commodities

The oil price remained under pressure due to lower demand’s expectations and higher supply with Libya rejoins market exporters and putting oil on track to end the month in the red for the first time in six months. Brent oil provided last week a bearish signal after closing below $42.50, therefore the technical outlook remains neutral and a close below $39.60 changes the outlook to negative. On the Other hand, the US Crude could fall towards $38.37 while the technical outlook changes to negative if closes below $36.32.

Gold lost 4.5% of its value last week and closed below $1,861 changing the technical outlook to negative, the precious metal could fall towards $1,796.

Looking Ahead

Markets will tune in the ECB president Lagarde’s speech on Monday at 9:45 PM (GMT) and Fed member Mester’s speech at 2:00 PM.


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.