October 21: Overnight Market Wrap

October 21: Overnight Market Wrap

Key Points:

Pelosi extends stimulus deal deadline with talks set to continue

USD ends lower on the day, DXY back at 93.00

RBA’s dovish stance sends AUD lower towards 0.70c

Yet again the main market volatility revolved around will they, wont they come to an agreement on the US fiscal stimulus deal. Comments from either side left markets disappointed however talks are due to continue on Wednesday between Mnuchin and Pelosi so there’s still a glimmer of hope. Early optimism saw stocks move higher on the open but towards the end of the session the rally had reversed back however all major indices posted minor gains. In FX the big story was the EUR rally from 1.1760 almost one way traffic to 1.1840 before a late drift back to settle at 1.1820 and the decline of AUD after RBA minutes saw the currency slip back to an intraday low of 0.7020. RBA’s Kent also reiterated Lowe’s dovish comments from last week adding to the pain with a cut on 3rd November now fully expected. The S&P rally saw AUD dragged back to 0.7070 during the session but settled back at 0.7050. EUR/AUD one of the biggest movers on the day. GBP remained jumpy on Brexit and Covid lockdown fears but held 1.2950 into the close despite a record new 21,331 cases over the past 24 hours. Gold closed at $1910 and WTI regained $41 giving the CAD some support on the day. Overall the USD ended the day lower with the DXY back at the key support lows from last week around 92.90/00. For the Asian session ahead today we get a look at preliminary retail sales from Australia for September and during the European session a look at UK inflation and more from ECB’s Lagarde. The US session tonight will be highlighted by the Fed’s Beige Book and Canadian retail sales and inflation data.

Trade the global markets with a broker that has integrity, honesty and transparency at its core

This website is owned and operated by the Ox Securities group of companies, which include:
Ox Securities Pty Ltd registered address Level 37, 1 Macquarie Place, Sydney NSW 2000 Australia. AFSL 438402 ACN 163 551 602
Ox Securities Limited (SV) registered address Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St Vincent and the Grenadines
Risk Warning: The information contained on this website is general in nature and does not constitute advice or a recommendation to act upon the information or an offer. The information on this website does not take into account your personal objectives, circumstances, financial situations or needs. You are strongly recommended to seek independent professional advice before opening an account with us and/or acquiring our services/products. Ox Securities Limited (SV) do not accept applications from residents of the United States of America and Australia
Before you decide whether or not to invest any products referred to on this website, being over the counter (OTC) derivatives, it is important for you to read and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Terms and Conditions (T&C), and ensure that you fully understand the risks involved. Fees, charges and commissions apply. OTC derivatives, including margin foreign exchange contracts and contract for differences, are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone. You may incur losses that are substantially greater than your initial investment. You do not own, or have any rights to, the underlying assets which the OTC derivative is referring to. You should only trade with money you can afford to lose. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity.

Copyright © OxSecurities 2020. All rights reserved