Market Wrap: Stocks, Bonds, Commodities
American major stock indices future higher on Tuesday morning on hope of corona vaccine by US pharma company.
Asian shares crept ahead on Tuesday following an upbeat session in Europe and further gains in U.S. stock futures as investors looked past Sino-U.S. trade tensions to a re-opening world economy.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.35% to 590.20 levels. Australian index advanced 2.93% to 5,780.00. Japan’s Nikkei led the way with a rise of 2.55% to its highest since early March when the economic impact of the coronavirus was just becoming clear.
European stocks were higher on Monday, with the Stoxx Europe 50 Index rose 2.27% to 2,971.35, Germany’s DAX gain 2.87% to 11,391.28 and France’s CAC advanced 2.15% to 4,539.91 and U.K.’s market close yesterday.
Benchmark 10-year U.S. Treasury rose as demand for safe asset grow again, today 10-year bond yield rose 5.45% to 0.69500.
Oil prices climbed on Tuesday, boosted by increasing faith in the market that producers will to stick to commitments to cut crude supply while demand picks up with more cars back on the road as coronavirus lockdowns are eased around the world.
Spot Brent crude Oil gain 2.15% to $36.28 per barrel. US West Texas Intermediate crude futures were higher 3.79% to $34.50 a barrel.
Gold was down on Tuesday morning in Asia, even after a falling dollar made gold slightly cheaper for investors holding other currencies. Today, gold prices slipped 0.23% to $1731.10 per ounce.
Market Wrap: Forex
The decline in U.S. yields might have been a burden for the dollar but with rates everywhere near or less than zero, major currencies have been holding to tight ranges.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.33% to 99.543.
The Euro US Dollar (EUR/USD) widely traded pair higher by 0.28% today. This left the pairing trading around $1.08270. The pound gain 0.53% to 1.22470.
The Japanese yen rose against the U.S. dollar on Friday as demand for safe currency rose. Today US/JPY gain 0.17% to 107.880.
Other commodity-related currency broadly edged higher against U.S dollar, AUD/USD rose 0.62% to 0.65840 and NZD/USD climbed 0.67% to 0.61410.
EUR/USD Intraday: Bias upside
Our pivot point is at 1.09050
Preferable Price Action: Take Long positions above pivot level with targets at 1.09470 & 1.09706 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.08613 & 1.08356.
Comment: Pair above20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Break consolidation area
Our pivot point is at 1.22200
Preferable Price Action: Long positions above pivot with targets at 1.22675 & 1.22965 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.21734 & 1.21420.
Comment: MACD in the positive zone and pair above 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
JPY/USD Intraday: Bias on the upside
Our pivot point is at 107.750
Preferable Price Action: Long position above pivot with the target at 108.050 and 108.224 in extension.
Alternative Price Action: The downside breakout of pivot would call for 107.435 and 107.253.
Comment: Pair above 55MA & 20MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: Support at 0.65600
Our pivot point is at 0.65600
Preferable Price Action: Long positions above pivot with targets at 0.66034 & 0.66243 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.65174 & 0.64960 as targets.
Comment: MACD in the positive zone and RSI at oversold levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Support at 33.80
Our pivot point is at 33.80
Preferable Price Action: Buy crude above pivot with targets at 35.10 and 35.70 in extension.
Alternative Price Action: Below pivots buy Oil with 32.42 & 31.76 as targets.
Comment: MACD in the positive zone and price above 20MA and 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Resistance at 1737
Our pivot point is at 1737.00
Preferable Price Action: Further downside to 1721.85 & 1715.59 level.
Alternative Price Action: If price gives upside breakout of a pivot, then price extends to 1751.35 and 1757.69.
Comment: RSI below 50 level mark and price below 20MA & 55MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Trend continues upside
Our pivot point is at 24850.00
Preferable Price Action: Take buy positions above pivot with targets at 25164.31 & 25360.94 in extension.
Alternative Price Action: Below 24850.00 looks for further downside to 24529.56 & 24330.86.
Comment: Index above 20MA & 55MA and also MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7