Market Wrap: Stocks, Bonds, Commodities
Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday as investors headed into their long holiday weekend buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well underway.
The Dow Jones Industrial Average rose 92.39 points (0.36%) to 25,827.36, the S&P 500 gained 14.15 points (0.45%) to 3,130.01 and the Nasdaq Composite added 53.00 points (0.52%) to 10,207.63.
Asian stocks were likely to track a firmer Wall Street session on Friday after strong U.S. jobs data although growing Sino-U.S. tensions and a worrying surge in coronavirus cases is likely to cap gains.
MSCI’s index of Asia-Pacific stocks outside Japan gain 1.02% to 673.50 levels. Australian index rose 0.42% to 6,057.90. Japan’s Nikkei gained 0.66% to 22,292.39.
European stocks were higher on Thursday, with the Stoxx Europe 50 Index gain 2.84% to 3,3320.10, Germany’s DAX rose 2.84% to 12,608.46 and France’s CAC advance 2.49% to 5,049.40 and U.K.’s FTSE 100 climbed 1.34% to 6,240.36.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.25% to 0.669.
Crude prices fell on Friday as the resurgence of the coronavirus globally and in the United States, the world’s largest oil consumer dimmed the prospects of fuel demand recovery.
Spot Brent crude Oil fell 0.86% to $42.77 per barrel. US West Texas Intermediate crude futures were lost 0.93% to $40.28 a barrel.
Today, Bullion prices down 0.28% to $1774.85 per ounce.
Market Wrap: Forex
The dollar was hemmed into a narrow range on Friday, supported by safe-haven flows as a resurgence of the coronavirus in the United States discouraged some investors from taking on excessive risk.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, down 0.15% to 97.198.
The Euro US Dollar (EUR/USD) widely traded pair slightly lower today. This left the pairing trading around $1.12370.
The Japanese yen down against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.10% to 107.500 level.
Other commodity-related currency broadly higher against U.S dollar, AUD/USD gained 0.20% to 0.69350 and NZD/USD rose 0.18% to 0.65220.
EUR/USD Intraday: Bias on Downside
Our pivot point is at 1.12550
Preferable Price Action: Take short positions below level with targets at 1.12131 & 1.11882 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.12947 & 1.13177.
Comment: Pair below 55MA & 20MA and RSI below 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: Trend upside
Our pivot point is at 1.24600
Preferable Price Action: Long positions above pivot with targets at 1.25008 & 1.25262 in extension.
Alternative Price Action: Price below pivot would call for further downside to 1.24182 & 1.23934.
Comment: Price above 20MA & 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
USD/JPY Intraday: Bias on the downside
Our pivot point is at 107.660
Preferable Price Action: Short position below pivot with the target at 107.291 and 107.095 in extension.
Alternative Price Action: The upside breakout of pivot would call for 108.013 and 108.211.
Comment: Short term Trend on the downside.
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 0.69130
Our pivot point is at 0.69130
Preferable Price Action: Long positions above pivot with targets at 0.69563 & 0.69760 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.68716 & 0.68511 as targets.
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
CRUDEOIL Intraday: Price show Strength
Our pivot point is at 39.80
Preferable Price Action: Buy crude above pivot with targets at 40.75 and 41.15 in extension.
Alternative Price Action: Below pivots sell Oil with 38.81 & 38.41 as targets.
Comment: Crude above Its 20MA & 55MA 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
XAU/USD Intraday: Strong Trend upside
Our pivot point is at 1771.50
Preferable Price Action: Further upside to 1781.05 & 178610 level.
Alternative Price Action: If price gives downside breakout of a pivot, then price extends to 1762.19 and 1757.26.
Comment: RSI above 50 level mark and price above its 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: Support at 25800.00
Our pivot point is at 25800.00
Preferable Price Action: Take buy positions above pivot with targets at 26147.69 & 26339.52 in extension.
Alternative Price Action: Below 25800.00 looks for further downside to 25468.99 & 25277.76.
Comment: Price 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 produced7