Gold 1922,715
|
EURUSD 1,1807
|
DJIA 28501,50
|
OIL.WTI 39,975
|
DAX 13087,28
|
|---|
Factors that have affected the appetite for risk will increase pressure on markets. The COVID-19 epidemic is gaining momentum every day. Statistics on the number of people falling ill per day set a new record every day.
EUR/USD
The new rules of social distance, which are currently being introduced only in European countries, will have an impact on the economy in the near future. So far, it is difficult to imagine how difficult it will be for countries to experience the second wave of coronavirus.
So far, the markets are feeling relatively well. Election euphoria is diverting attention from other important macroeconomic indicators. Waiting for the adoption of the stimulus package warms up interest in risk assets. If the package is accepted, a huge amount of money will come to the market, which will be spent by Americans on goods and services.
The S&P500 index rose 1.1% on Friday to 3476 and almost reached the strong resistance line of 3500. If the aid package is accepted soon, we will see new historic highs.
Euro
The EUR/USD pair rose 0.56% on Friday to 1.1823, making a new two-week high. The pair seems to have closed above its key level at 1.18, which may signal continued growth. Of course, the ECB is not comfortable with this situation as the economy will recover more slowly because of the strong Euro. It should be noted that the ECB’s balance sheet increased by a record 170 billion Euro over the last week, which should put pressure on the European currency. The current situation is uncertain. There are no impulses for a particular upward or downward movement. There is a high probability that the EUR/USD pair will float in the range of 1.1750-1.1950.
Oil
Hurricane Delta may make adjustments to the operation of oil rigs in the Gulf of Mexico, which should in due course affect the price of a barrel. On Friday, the price of WTI oil fell by 1.55% to $40.8 per barrel. More importantly, this was due to a possible fixing of traders’ positions at the end of the week. A growth factor could be OPEC+’s decision not to increase oil production next year. Given the general news background, oil growth may continue with the immediate target of $43 per barrel.
What awaits us today?
8.00 Wholesale Price Index in Germany since the beginning of the year
13.00 Address by ECB Head C. Lagarde
22.00 Housing Price Index from REINZ in New Zealand for September
Important Notes on This Publication:
The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.