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EUR/USD Bulls Shy Away from Key Resistance Level, What Moves Markets?

EUR/USD Bulls Shy Away from Key Resistance Level, What Moves Markets?

Equities rally on US elections poll’s and the Federal Reserve members express concerns. What is the outlook of FX, and commodities markets today?

Equities

On Wednesday global stocks rallied on hopes of a Democratic victory in the US elections could mean more federal spending to boost the economy, as the recent polls have favored the Democratic candidate Joe Biden against President Trump.


The Federal reserve minutes reflected member’s concerns about the delay in passing the new fiscal spending bill and hinted that the central bank may consider increasing its current bond purchasing program. Members have agreed that the US economy’s recovery would be dependent on the coronavirus course, and according to the Fed member Evans, investors still believe that the Fed would not change the interest rate until reaching full employment and inflation seem to overshoot its 2.0% target which may take years.

Stock Market

Change %

S&P 500

+2.0%

Dow Jones

+2.1%

NASDQ

+2.1%

Japan 225

+0.9%

DAX 30

+1.3%

FTSE 100

+0.8 %

CAC 40

+0.9%


Currencies

The greenback slipped on Wednesday by 0.2% yet the bullish uptrend still intact while above the neckline of the inverted head and shoulders pattern located on Thursday at 93.33. Therefore, a daily close above 94.04 could send the US Dollar index towards 95.24.

On the other hand, the EUR/USD rallied on Wednesday however, remained below the 50-day moving average highlighting the bull's weakness. A close below 1.1713 could send the pair towards 1.1621.

The GBP/USD has benefited from the US dollar retreat and tested this week the 1.3000 level for the first time in three weeks. However, the EU/UK negotiations updates next week could weigh heavily on the British pound as the UK may pull out of the talks if there was no clear deal in sight.

Commodities

The oil price rallied on Wednesday as US inventories numbers showed a big drop from 1.78 M to 0.47M. However, the surge in COVID-19 infections in New York (three months high) kept the rally in check. The Brent oil remained around $42.50 yet a failure to close above that level could reverse the price direction towards $39.60 while the US Crude may fall towards $38.37 while below the 50-day moving average.

The Gold price failed to close above $1,921 and pointed lower this week. The precious metal could resume bearish price action if closes below $1,861.

Looking Ahead

The ECB monetary policy meeting accounts will be released at 12:30 PM (GMT) and by 1:30 PM eyes will be on the US initial jobless claims, then the Fed member Barkin will deliver a speech at 7:30 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..

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