US consumer confidence beats expectations
DXY closes week largely unchanged
US stocks remain under pressure closing lower on the week
US equities closed lower on Friday again with tech remaining under pressure and dragging down both Nasdaq and S&P500 over 1%. The open this morning has seen the futures slip once again. GBP was the noisiest currency last week with a mix of data, Brexit turmoil and towards the end of the week a refocus on a rise in coronavirus cases and thus talks of new stricter lockdowns ahead. Having started last week just above 1.28 the pair closed around 1.2930 and will remain in view for traders for this coming week as we await news of these new rules. EUR also followed a similar pattern to Cable as virus cases make headlines again pushing EUR/JPY and GBP/JPY back below trendlines and indicating further falls are likely. Despite a better than expected consumer confidence read, the DXY remains stuck around 93.00 needing to maintain a close above 92.70 for a move back higher, below would open a move to 92.10/20. Elsewhere, Gold closed up $6 at 1950 and WTI unchanged. Political news over the weekend has centred around the death of Supreme Court Justice Ruth Bader Ginsburg and the affect her being replaced may have on the upcoming US election. Hard to see how markets price it as it is such an unknown. Anyhow, with just 43 days until the election it would appear that some nervousness is starting to filter through and we could see risk remain under pressure. This week will be heavy on central bank speak with Fed’s Powell busy with three speeches no less along with Brainard and Williams adding their tuppence. We will also hear from BoE’s Bailey and RBA’s DeBelle tomorrow. First Powell speech tonight in the US session with no release of note prior apart from the BoE’s inflation report which is unlikely to cause a stir given the current global climate. Japan will observe a public holiday today.