Market Wrap: Stocks, Bonds, Commodities
Stocks on Wall Street closed lower on Thursday as investors shifted out of big technology names, while an unexpected rise in weekly U.S. jobless claims pointed to a fragile recovery in the labour market.
The Dow Jones Industrial Average fell 119.68 points (0.38%) to 31,493.34, the S&P 500 lost 17.36 points (0.44%) to 3,913.97 and the Nasdaq Composite dropped 100.14 points (0.72%) to 13,865.36.
Asian stocks were set to pull back on Friday, following a dip on Wall Street as disappointing U.S. jobs data fanned concerns the economic recovery from the coronavirus was losing momentum.
MSCI’s index of Asia-Pacific stocks outside Japan rose 0.10% to 944.50 levels. Australian index slumped 1.34% to 6,793.80. Japanese Nikkei traded 0.72% lower to 30,017.92.
European stocks were advance on Friday, with the Stoxx Europe 50 Index gained 0.43% to 3,696.21, Germany’s DAX rose 0.45% to 13,953.00 and France’s CAC higher 0.47% to 5,755.44 and U.K.’s FTSE 100 flat to 6,617.15.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield gained 1.20% to 1.303.
Oil fell the most in nearly a month alongside a broader market selloff with the ongoing energy crisis in the U.S. likely keeping refineries shut for another week.
Spot Brent crude oil lost 1.31% to $63.10 per barrel. US West Texas Intermediate crude fell 1.31% to $63.08 a barrel.
The yellow metal traded 0.20% lower to 1773.20 dollars per ounce.
Market Wrap: Forex
The U.S. dollar maintained its biggest loss in 10 days on Friday after disappointing U.S. labour market data bruised optimism for the country’s speedy recovery from the COVID-19 pandemic.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, lost 0.37% to 90.263.
The Euro US Dollar (EUR/USD) widely traded pair rose 0.42% today. This left the pairing trading around $1.21400.
The Japanese yen gained against the U.S. dollar on Friday as the stock pushes higher. Today US/JPY lost 0.30% to 105.360 level.
Other commodity-related currency higher against the U.S dollar, AUD/USD rose 0.91% to 0.78380 and NZD/USD advancing 0.60% to 0.72640.
EUR/USD Intraday: Upside trend
Our pivot point is at 1.21110
Preferable Price Action: Take Long positions above pivot level with targets at 1.21410 & 1.21620 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.20810 & 1.20610.
Comment: Pair above its 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
GBP/USD Intraday: Support at 1.39560
Our pivot point is at 1.39560
Preferable Price Action: Buy positions above pivot with targets at 1.40030 & 1.40330 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.39100 & 1.38800.
Comment: Price above its 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
USD/JPY Intraday: Resistance at 105.760
Our pivot point is at 105.760
Preferable Price Action: Sell position below with the target at 105.450 and 105.250 in extension.
Alternative Price Action: The upside breakout of pivot would call for 106.070 and 106.270.
Comment: price below 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: Support at 0.77660
Our pivot point is at 0.77660
Preferable Price Action: Buy Positions above pivot with targets at 0.78050 & 0.78250 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.77280 & 0.77080 as targets.
Comment: Pair above its 55MA & 20MA an 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: Trend downside
Our pivot point is at 60.35
Preferable Price Action: Below pivots sell Oil with 59.40 & 58.90 as targets.
Alternative Price Action: Buy crude above pivot with targets at 61.30 and 61.80 in extension.
Comment: Crude below its 20MA & 55MA 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
XAU/USD Intraday: Bias on the upside
Our pivot point is at 1767.00
Preferable Price Action: Further upside to 1781.00 & 1790.10.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1753.50 and 1745.00.
Comment: MACD in negative territory and price above 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: In consolidation zone
Our pivot point is 31,550.00
Preferable Price Action: Take sell positions below pivot with targets at 31,390.00 & 31,290.00 extension.
Alternative Price Action: Above 31,550.00 looks for further upside to 31,700.00 & 31,800.00.
Comment: Price below 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 produced7