Market Wrap: Stocks, Bonds, Commodities
The S&P 500 ended lower on Thursday after a rise in weekly jobless claims compounded worries about a stalling economic recovery and fading hopes for more fiscal aid before the election.
The Dow Jones Industrial Average fell 0.07% to end at 28,494.2 points, while the S&P 500 lost 0.15% to 3,483.34. The Nasdaq Composite dropped 0.47% to 11,713.87.
Asian stocks came under pressure on Friday as investors sought safe havens, such as the U.S. dollar, fearing that a resurgence in coronavirus cases and a lack of additional U.S. fiscal stimulus would hobble the world economy.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.10% to 738.50 levels. Australian index lost 0.54% to 6,176.80. Japanese Nikkei dropped 0.41% to 23,410.63.
European stocks were higher on Friday, with the Stoxx Europe 50 Index gained 0.68% to 3,214.35, Germany’s DAX rose 0.33% to 12,743.75 and France’s CAC surged 1.32% to 4,901.11 and U.K.’s FTSE 100 advance 1.22% to 5,903.41.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield plunged 0.91% to 0.727.
Oil prices eased on Thursday as new restrictions to stem a surge in COVID-19 infections dimmed the outlook for economic growth and fuel demand.
Spot Brent crude Oil fell 0.95% to $42.75 per barrel. US West Texas Intermediate crude lost 0.90% to $40.59 a barrel.
The yellow metal traded 0.12% higher to 1906.30 dollar per ounce.
Market Wrap: Forex
The dollar was headed for its best week of the month on Friday, as surging coronavirus cases and stalled progress toward U.S. stimulus had nervous investors seeking safe assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lower 0.10% to 93.763.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.05% today. This left the pairing trading around $1.17710. GBP/USD down 0.05% to 1.29080.
The Japanese yen down against the U.S. dollar on Thursday as stock pushes higher. Today US/JPY down 0.15% to 105.300 level.
Other commodity related currency higher against U.S dollar, AUD/USD advance 0.05% to 0.70910 and NZD/USD up 0.17% to 0.66040.
EUR/USD Intraday: Support at 1.16950
Our pivot point is at 1.16950
Preferable Price Action: Take Long positions above level with targets at 1.17290 & 1.17500 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.16630 & 1.16420.
Comment: Pair above its 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
GBP/USD Intraday: Support at 1.28880
Our pivot point is at 1.28880
Preferable Price Action: Long positions above pivot with targets at 1.29390 & 1.29690 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.28400 & 1.28100.
Comment: Price below 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
USD/JPY Intraday: Bias on upside
Our pivot point is at 105.190
Preferable Price Action: Long position above pivot with the target at 105.470 and 105.620 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.900 and 104.750.
Comment: price above 55MA & 20MA and MACD in negative 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
AUD/USD Intraday: Trend on the downside
Our pivot point is at 0.71090
Preferable Price Action: Short positions below pivot with targets at 0.70700 & 0.70500 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.71480 & 0.71680 as targets.
Comment: Pair above its 55MA & 20MA and RSI at 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
CRUDEOIL Intraday: Trend upside
Our pivot point is at 40.55
Preferable Price Action: Buy crude above pivot with targets at 41.30 and 41.70 in extension.
Alternative Price Action: Below pivots sell Oil with 39.80 & 39.40 as targets.
Comment: Crude above Its 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1990.80
Preferable Price Action: Further upside to 1914.20 & 1920.30 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1887.60 and 1881.00.
Comment: MACD in positive territory and price below its 55MA & 20MA.
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: Bias on the upside
Our pivot point is at 28,390.00
Preferable Price Action: Take buy positions above pivot with targets at 28,600.00 & 28,730.00 in extension.
Alternative Price Action: Below 28,390.00 looks for further downside to 28,180.00 & 28,040.00.
Comment: Price below its 55MA 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 produced7