Market Roundup
•US Challenger Job Cuts 80.666K, 118.804K previous
•US Challenger Job Cuts (YoY) 80.7%, 185.9% previous
•Russia Central Bank reserves (USD) 584.0B,589.8B previous
•Brazil Oct Markit Services PMI 52.3, 50.4 previous
•Brazil Markit Composite PMI 55.9, 53.6 previous
•US Jobless Claims 4-Week Avg 787.00K,787.75K previous
•US Initial Jobless Claims 751K, 732K, 751K previous
•US Continuing Jobless Claims7,285K, 7,200K forecast, 7,756K previous
•US Unit Labor Costs (QoQ) (Q3) -8.9%,-11.5% forecast, 9.0% previous
•US Nonfarm Productivity (QoQ) (Q3) 4.9%,5.6% forecast, 10.1% previous
•US Fed Interest Rate Decision0.25%, 0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
•23:50 Japan Foreign Bonds Buying -1,010.8B previous
•23:50 Japan Foreign Investments in Japanese Stocks 228.4B previous
•02:00 New Zealand Inflation Expectations (QoQ) 1.4% previous
Looking Ahead - Events, Other Releases (GMT)
• 00:30 Australia RBA Monetary Policy Statement
Currencies Summaries
EUR/USD: The euro rose higher against dollar on Thursday as surging stock markets reduced demand for the greenback, and as the Federal Reserve kept its loose monetary policy intact. Stocks jumped as bets on Republicans retaining control of the Senate eased worries of major policy changes that could hurt corporate America under a Joe Biden White House, even as the presidential election hung in the balance. The dollar index fell 0.95% against a basket of currencies to 92.51.The euro jumped 0.99% to $1.1838.Immediate resistance can be seen at 1.1814 (61.8%fib), an upside break can trigger rise towards 1.1839 (61.8%fib).On the downside, immediate support is seen at 1.1792 (50% fib), a break below could take the pair towards 1.1754 (38.2% fib).
GBP/USD: Sterling strengthened against dollar on Thursday as switched to riskier currencies on expectations Democrat challenger Joe Biden will be the next U.S. president. Biden moved closer to victory in the presidential race on Thursday as election officials tallied votes in the handful of states that will determine the outcome. The British pound was up 0.4% at $1.3046, after falling 0.2% in Asian trading. Against the euro, it fell 0.2% at 90.44 pence. Immediate resistance can be seen at 1.3153 (38.2%fib), an upside break can trigger rise towards 1.3199 (Higher BB).On the downside, immediate support is seen at 1.3066(50% fib), a break below could take the pair towards 1.3015 (11DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as a rally in global shares after the U.S. election pressured the greenback, with investors weighing the policy implications of a potentially divided U.S. Congress. The price of oil , one of Canada's major exports, settled 0.9% lower at $38.79 a barrel. Canada’s jobs report for October is due on Friday, which could offer some clues about the strength of Canada's economic recovery. The loonie was trading 0.7% higher at 1.3050 to the greenback . The currency touched its strongest intraday level since Sept. 1 at 1.3024. Immediate resistance can be seen at 1.3098 (38.2%fib), an upside break can trigger rise towards 1.3114 (5DMA).On the downside, immediate support is seen at 1.3020(23.6%fib), a break below could take the pair towards 1.2979 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Thursday as global stocks rallied and the Fed pledged again to do whatever it can in coming months to sustain a U.S. economic recovery threatened by a spreading coronavirus pandemic and facing uncertainty over a still undecided presidential election. The dollar has been hurt by the Fed’s zero rate policy and ongoing bond purchases as the U.S. central bank aims to stimulate growth after the economy was ravaged by business shutdowns due to COVID-19.Strong resistance can be seen at 104.07 (23.6% fib), an upside break can trigger rise towards 104.34(11DMA).On the downside, immediate support is seen at 103.73 (Lower BB), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European stocks hit a more than two-week high on Thursday, as strong quarterly earnings, fresh stimulus for Britain’s coronavirus-hit economy and a post-election gains for Wall Street lifted investor spirits.
UK's benchmark FTSE 100 closed up by 0.39 percent, Germany's Dax ended upby 1.98 percent, France’s CAC finished the day up by 1.24percent.
U.S. stocks jumped on Thursday, as investors bet Republicans would retain control of the Senate and block any major policy changes under a possible Joe Biden White House that could dampen corporate profits.
Dow Jones closed up by 1.95% percent, S&P 500 closed up by 1.95% percent, Nasdaq settled up by 2.59% percent.
Treasuries Recap
Longer-dated U.S. Treasury yields bounced slightly higher on Thursday after reaching three-week lows earlier in the session on post-election volatility.
The benchmark 10-year yield, which touched its lowest level since mid-October at 0.718%, was last at 0.7763%. The 30-year bond yield also hit a three-week low of 1.48% and was last at 1.5498%.
Commodities Recap
Gold jumped to a two-week high on Thursday as the dollar slipped, with investors betting on the likelihood of bigger economic support measures as Democrat Joe Biden inched closer to the Oval Office in the U.S. election.
Spot gold was up 0.9% at $1,919.61 per ounce by 1219 GMT, having earlier scaled its highest peak since Oct. 22 at $1,920.91.U.S. gold futures gained 1.3% to $1,921.30.
Oil prices fell nearly 1% on Thursday, weighed down by the steady rise in coronavirus infections and as the outcome of the U.S. presidential election had still not been settled.
Brent crude settled down 30 cents, or 0.7%, at $40.93 a barrel and U.S. West Texas Intermediate (WTI) crude was down 36 cents, or 0.9%, at $38.79. Both contracts jumped about 4% on Wednesday.
