DAILY MARKET REPORT - Friday, Oct 30, 2020

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U.S. gross domestic product surged at a 33.1% annualized rate in the third quarter, the Commerce Department said on Thursday. The data was stronger than the estimate of 32.0% and comes after a staggering decline of 31.4% in Q2. Wall Street closed slightly higher on Thursday after the upbeat GDP numbers while the US dollar climbed fresh monthly high.

EQUITIES

Global stocks struggling to find the upside momentum due to the uncertainty ahead of the US election and continuous surge in coronavirus cases across the US and Europe.

OIL


Crude oil prices slipped to a fresh monthly low as rising coronavirus cases continued to dent expectations for demand and data from both API and EIA showed a bigger-than-expected build in US oil inventories.

CURRENCIES

In the currency market, the EURO plunged new weekly low on Thursday driven by a strong dollar and negative comments from the ECB president. The ECB left its main refinancing and deposit rates unchanged in October, at 0.00% and -0.5%, respectively, as expected. " The downside risks had increased and that softer economic activity in the fourth quarter was witnessed’ Christine Lagarde, the head of the ECB, said. The fourth quarter would almost certainly be weak, with a "very negative" November, she added.

GOLD

The gold price extends lower on Thursday following strong US GDP and weekly employment claims numbers. Later in the session, the yellow metal slightly rebounded from daily session lows after weaker-than-expected September US Pending Home Sales figures.

Economic Outlook

On the data front, the US released the latest jobless claims data for the week to 24 October, the data showed that 751,000 Americans filed for unemployment benefits, down from 791,000 in the previous week and lower than estimates of 770,000.

On the earnings front, the big tech stocks closed higher before the Q3 earnings. Amazon.com Inc (NASDAQ: AMZN) jumped 1.2%, Apple Inc (NASDAQ: AAPL) gained 3.5%, Alphabet Inc (NASDAQ: GOOG) rose 2.9% and Facebook Inc (NASDAQ: FB) was up 5.3%. Meanwhile, the stocks pull back from the short-term rally after the closing bell on Thursday.

Moving ahead today, the important events to watch:

EUROZONE – Consumer price index: GMT – 10.00

CANADA – GDP: GMT – 12.30

Coronavirus update:

The global coronavirus pandemic has now infected near 44 million people and claimed more than 1 million lives. The United States is the most affected country both in terms of the number of deaths and cases, with 227,701 deaths for 8,859,300 recorded cases, according to the Johns Hopkins University count.

Technical Outlook

DOLLAR INDEX:
From a technical analysis standpoint, the immediate bias will remain bullish as long as prices are held above 93.90. On the other side, the immediate support at 93.30.

euraud


The important levels to watch for today: Support- 93.70 and 93.30 Resistance- 94.20 and 94.50.



GOLD: On Thursday, the yellow metal tested support at $1859 in the North American session. Any break below this level the next crucial support to watch $1850/48.

gold neww


The important levels to watch for today: Support- 1859 and 1848 Resistance- 1875 and 1886.

Quote of the day: Understanding how to be a good investor makes you a better business manager and vice versa – Charlie Munger.

Read more- https://gulfbrokers.com/en/daily-market-report-198
 
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