Forex signals news and analysis, fundamental stock market breakdown including geopolitical analysis and in depth discussion. Up to date live news feed from around the world, stock market specific.
Fully Regulated Australian Specialist Broker
Thursday, 1 October 2020
ASX 200 Follows Wall Street's Post-Debate Rally, Tokyo Delays Open
Dollar Exhibits Mixed Trend Against Peers
The U.S. dollar turned in a mixed performance against its peers on Wednesday.
News about a surge in coronavirus cases across the globe, the presidential debate that took place Tuesday night and economic data from the U.S. and U.K. were the key factors that set the trend for the currency's movements.
After two successive days of weakness, the dollar gained in the Asian session today, as the US Presidential election debate failed to impress investors and increased uncertainty about an inconclusive election.
President Donald Trump and Democratic rival Joe Biden clashed over Trump's handling of the coronavirus pandemic, the economy and the integrity of the upcoming election in the first presidential debate held at Case Western Reserve University in Cleveland.
Comments from Trump suggesting a delay in the election results and uncertainty ahead weighed on the markets.
However, the greenback failed to hold gains and slipped as session progressed, and then stayed sluggish for almost the rest of the session.
A report released by payroll processor ADP said private sector employment in the U.S. surged up by more than expected in the month of September, increasing by 749,000 jobs, after jumping by an upwardly revised 481,000 jobs in August.
Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
According to a report from the National Association of Realtors, pending home sales in the U.S. jumped to a record high in the month of August. The NAR report said its pending home sales index spiked by 8.8% to 132.8 in August after surging up by 5.9% to 122.1 in July. Economists had expected pending home sales to increase by 3.2%.
The dollar index rose to 94.19 by mid morning but fell to 93.67 a little before noon before recovering to 93.84, slightly below its previous close of 93.89.
Against the Euro, the dollar fell to $1.757 but regained some lost ground as the day progressed and was last seen at $1.1728, compared to $1.1744 Tuesday afternoon.
The Pound Sterling firmed up, fetching $1.2922 per sterling, rallying from $1.2858. The U.K. economy contracted at a record pace in the second quarter though the decline was less severe than previously estimated, revised data from the Office for National Statistics showed.
The Yen was firmer at 105.45 a dollar, compared to 105.67 a dollar on Tuesday.
The dollar was weak against the Aussie with the AUD-USD pair at 0.7164, nearly 0.5% lower than previous close.
The Swiss franc was weak at CHF0.9211, falling from CHF0.9197. The the Loonie was stronger at C$1.3320, firming up from C$1.3388 a dollar, thanks to higher crude oil prices.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2164716/
Will Trade Wars Persist After the US Election?
EUR/USD Bullish Price Sequence Pushes RSI Towards Trendline Resistance
Treasuries Climb Off Worst Level But Still Close Lower
Treasuries moved to the downside during trading on Wednesday, more than offsetting the modest strength seen in the previous session.
Bond prices climbed off their worst levels in afternoon trading but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.2 basis points to 0.677 percent.
The weakness among treasuries came following the release of some upbeat U.S. economic data, including a report from payroll processor ADP showing private sector employment surged up by more than expected in the month of September.
ADP said private sector employment spiked by 749,000 jobs in September after jumping by an upwardly revised 481,000 jobs in August.
Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
The National Association of Realtors also released a report showing pending home sales jumped to a record high in the month of August.
NAR said its pending home sales index spiked by 8.8 percent to 132.8 in August after surging up by 5.9 percent to 122.1 in July. Economists had expected pending home sales to increase by 3.2 percent.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Traders were also reacting to comments from Treasury Secretary Steven Mnuchin, who said he is "hopeful" about reaching an agreement with House Speaker Nancy Pelosi on a new coronavirus stimulus bill.
"I say we're going to give it one more serious try to get this done and I think we're hopeful that we can get something done," Mnuchin said during the Delivering Alpha conference presented by CNBC and Institutional Investor. "I think there is a reasonable compromise here."
However, treasuries regained some ground after Senate Majority Leader Mitch McConnell said Republicans and Democrats remain "far apart" on a deal.
Trading on Thursday may be impacted by reaction to another batch of economic data, including reports on weekly jobless claims, personal income and spending, manufacturing activity and construction spending.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2164715/
Crude Oil Futures Close Sharply Higher As Inventories Drop
Crude oil prices rebounded after early weakness on Wednesday as data showed a drop in U.S. crude inventories in the week ended September 25.
Worries about energy demand outlook due to rising coronavirus cases across the world and reports of fresh lockdown measures in several countries weighed on oil prices early on in the session.
Renewed uncertainty over U.S. presidential elections and the Congressional stalemate on a stimulus package also kept traders and investors on tenterhooks.
However, the official data from EIA helped pull oil prices out from the red.
West Texas Intermediate Crude oil futures for November ended up $0.93 or about 2.4% at $40.22 a barrel.
According to the data released by EIA, crude oil stockpiles fell by about 2 million barrels last week, as against expectations for an increase of 400,000 barrels.
Gasoline inventories were up by 0.7 million barrels, while distillate fuel inventories dropped by 3.2 million barrels.
The EIA data also said that crude stored at Cushing, Oklhahoma, dropped by 1.5 million barrels to 263.5 million.
The data said crude inventories are approximately 13% higher than the five-year average for this time of the year.
The American Petroleum Institute (API) reported late Tuesday a draw in crude oil inventories of 831,000 barrels for the week ending September 25 - but this draw was more than offset by a build in gasoline inventories.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2164714/
Gold Futures Settle Lower As Dollar Rebounds From Recent Weakness
Gold prices edged lower on Wednesday as the dollar fared reasonably well amid uncertainty about the pace of economic recovery due to spikes in coronavirus cases across the world.
The dollar index, which rose to 94.19 around mid-morning, dropped down to 93.67 a little before noon before recovering to 93.85. It had ended at 93.89 on Tuesday.
The greenback's initial strength came as the mood in the financial markets turned cautious after the first debate between U.S. President Donald Trump and Democratic challenger Joe Biden turned into bitter taunts and near chaos yesterday and raised concerns over heightened political risk ahead of the presidential election.
Gold futures for December ended down $7.70 or about 0.4% at $1,895.50 an ounce, falling from the session's high of $1,906.60 an ounce.
The futures contract shed more than 4% in September, but recorded a gain of about 5.3% in the third quarter, notching up gains for the eighth successive quarter.
Silver futures for December dropped $0.951 to settle at $23.494 an ounce, while Copper futures for December settled at $3.0325 per pound, up $0.0425 from previous close.
In economic news, a report released by payroll processor ADP said private sector employment in the U.S. surged up by more than expected in the month of September, increasing by 749,000 jobs, after jumping by an upwardly revised 481,000 jobs in August.
Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.
According to a report from the National Association of Realtors, pending home sales in the U.S. jumped to a record high in the month of August. The NAR report said its pending home sales index spiked by 8.8% to 132.8 in August after surging up by 5.9% to 122.1 in July. Economists had expected pending home sales to increase by 3.2%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2164713/