DAILY MARKET REPORT - Monday, Nov 02, 2020

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Crude oil prices open the week on a bearish note. The recent sell-off furled by Libya's announcement that it is ramping up production and rising new coronavirus cases in Europe and the US. As a result, France and Germany have announced a return to lockdowns for at least a month. This week the Oil investors and traders will closely monitor the US inventory reports and US presidential election results.

EQUITIES

US futures slightly rebounded on Monday after experiencing the biggest weekly loss since March ahead of the results from the US presidential elections, which will be held tomorrow. Asian stocks traded higher supported by strong Chinese data. China’s manufacturing PMI increased to 53.6 from 53.0 in September.

OIL

Crude oil prices slightly reversed from the Asian session lows. The Oil futures fell more than 2% on Monday morning.

CURRENCIES

In the currency market, the British pound slipped to a fresh session low on Monday after UK Prime Minister Boris Johnson announced Saturday a new month-long lockdown for England. Meanwhile, during the European session, the currency pair slightly reversed boosted by better-than-expected manufacturing PMI data.

GOLD

The gold price trading higher on Monday as investors moved into the safe-haven assets ahead of the political event of the year - the US presidential election.

Economic Outlook

On the data front, UK Manufacturing PMI was revised higher to 53.7 in October 2020, from a preliminary estimate of 53.3 and compared to September's final reading of 54.1.

This week the main event will be U.S. election day on Tuesday. Elections aside, the other important events to watch RBA, FED, and BOE interest rate decision and statement, Non-farm payroll numbers, and Manufacturing data from the US, Europe, and the UK.

On the US election front, Democrat Joe Biden is still in the lead according to most opinion polls while his polling lead has fallen to around 7.9% from above 10% a few weeks ago.

Moving ahead today, the important events to watch:

US– Manufacturing PMI: GMT – 14.45

US – ISM manufacturing PMI: GMT – 19.00

Coronavirus update:

Worldwide, there were 46.3 million known cases of COVID-19 and nearly 1.2 million deaths, according to Johns Hopkins University. The United States had 9.1 million cases and 230,870 deaths. France recorded near 46.29K new infections in the last 24 hours, higher than 35.641K on Saturday.

Technical Outlook

DOLLAR INDEX:
The index slightly retreated from the fresh highs on Monday ahead of US election results. In 2016, the US Dollar Index rose nearly 6 percent in the 2 months after Donald Trump was elected.

euraud


The important levels to watch for today: Support- 93.90 and 93.60 Resistance- 94.30 and 94.70.



GOLD: The yellow metal price hovers below the $1890 resistance level ahead of US ISM manufacturing data. Any break above this level the next upside to watching $1900(psychological level) and $1910. On the flip side, the immediate support at $1882 followed by $1874.

gold neww


The important levels to watch for today: Support- 1882 and 1874 Resistance- 1891 and 1900.

Quote of the day: Good day traders do not have big swings or big losing days. A good day trader is very conservative and picks his spots closely- Edward Franco.

Read more- https://gulfbrokers.com/en/daily-market-report-199
 

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