Daily Market Comment – Dollar firms, stocks slip amid US stimulus doubts

Posted on October 22, 2020 at 8:49 am GMT

Talks on US stimulus package continue but deal in doubt after Trump slams Democrats Dollar regains some footing, equities drift lower as final presidential debate eyed Brexit progress supports euro and pound as virus cases spiral out of control Stimulus setback after Trump throws a tantrum Hopes for a quick deal on a new coronavirus aid package in the United States have faded somewhat as negotiations between the White House and the Democrats drag on. Disagreement over funding for state [..]

Daily Market Comment – Stimulus deal moves closer; stocks cheer but dollar sags

Posted on October 21, 2020 at 8:58 am GMT

Talks continue on virus relief bill as Trump backs large stimulus Stocks rise but gains contained amid doubts about Republican support Dollar slumps to one-month low as euro soars, gold catches a bid too Markets anxiously await a stimulus deal Growing optimism that a bipartisan deal on a new coronavirus aid package in the United States is within reach lifted equities on Wednesday while investors dumped the safe-haven US dollar. Talks between House Speaker Nancy Pelosi and Treasury Secretary Steven [..]

Technical Analysis – USDJPY bears still have control; holds in falling channel

Posted on October 21, 2020 at 6:47 am GMT

USDJPY has been making lower highs and lower lows since the end of March when it touched the 111.70 resistance level. The technical indicators, though, continue to send neutral signals, suggesting that the softness in the market is not over yet in the very short-term timeframe. The RSI has flattened near the neutral threshold of 50, indicating that the market could weaken a little bit until the pair falls further in the descending channel. The MACD oscillator is still heading [..]


Technical Analysis – USDJPY faces bearish risks inside descending channel

Posted on October 19, 2020 at 12:40 pm GMT

USDJPY pulled back from the 40-period simple moving average (SMA) and the upper bound of the descending channel in the previous couple of sessions. The short-term risk seems to be to the downside as the price is ready to cross below the Ichimoku lines and the RSI is pointing south in the negative territory. However, the MACD is gaining some ground above its trigger line, although it is still developing in the bearish area. Further losses could lead the market towards the 104.92-105.02 [..]

Daily Market Comment – Cautious optimism as US stimulus and Brexit talks hang in the balance

Posted on October 19, 2020 at 9:00 am GMT

Pelosi sets new deadline for reaching fiscal stimulus deal; US stock futures edge up Mild risk-on tone after China GDP miss as stronger September lends support Pound shrugs off on-off Brexit talks as UK leaves door open to a deal Euro struggles after Lagarde adds to growing dovish voices Hopes for pre-election stimulus deal not dead yet Fresh talks in Washington between the White House and the Democrats on a new virus relief bill kept alive hopes that a deal [..]

Week Ahead – Flash PMIs could underscore worsening virus trend; US election polls in focus

Posted on October 16, 2020 at 12:36 pm GMT

The virus reality has come back to bite markets just as investors were attempting once again to shrug off the gloom and doom. The daily frequency of tighter Covid restrictions being announced across Europe and dimming expectations of a pre-election stimulus deal by US lawmakers has put a dampener on risk sentiment over the past few days. Uncertainty about the US election and Brexit are adding to the market anxiety. With none of these outstanding issues expected to be resolved [..]

Daily Market Comment – Wall Street storms back, but currencies don’t play along

Posted on October 16, 2020 at 8:30 am GMT

US stocks trim losses, close almost unchanged as Trump hints at higher stimulus offer Yet, the currency arena doesn’t get the memo – dollar holds onto gains Most likely just a reflection of euro and sterling weakness Coming up: US retail sales today, New Zealand election over the weekend Equity and currency markets dance to different tunes Global markets are torn between conflicting narratives, with fears around new virus restrictions in Europe that could cripple the recovery being mostly neutralized [..]

Daily Market Comment – Sentiment sours as stimulus talks stall, virus cases surge

Posted on October 15, 2020 at 8:05 am GMT

Stocks retreat, dollar goes nowhere as Mnuchin plays down pre-election stimulus European covid cases go through the roof, but euro stands its ground UK signals it won’t abandon Brexit talks this week, pound jumps Aussie slides after RBA Governor fuels speculation for rate cut Stimulus talks stall, markets fall Global equity markets continue to correct lower, with the major US indices sliding yesterday and Asian bourses being a sea of red on Thursday, as the chances of a US relief [..]

Daily Market Comment – Lockdown fears running wild

Posted on October 14, 2020 at 8:01 am GMT

Dollar comes back to life as euro and sterling feel the lockdown blues Little progress in US stimulus talks also supports dollar, pressures stocks Overall, plenty of risks out there being ignored by investors? Lockdown blues hammer euro and pound The European virus situation is getting worse by the day, with a surge in new cases and hospitalizations across the continent forcing many nations to go back into partial lockdown so that healthcare systems are not overwhelmed. The Netherlands announced [..]


Technical Analysis – USDJPY stabilizes near 20-day SMA; medium-term trend is down

Posted on October 14, 2020 at 7:35 am GMT

USDJPY stabilized within the 105.00 area and around the 20-day simple moving average (SMA) following the rejection of the 106.10 level and the upper Bollinger band earlier this week. The momentum indicators are directionless, suggesting a neutral short-term bias as the RSI is hovering around its 50 level and the MACD is squeezed between its zero and signal lines. Nevertheless, a step below the middle Bollinger band (105.20), which is also the 20-day SMA, may generate additional losses towards the lower Bollinger [..]

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