DAILY MARKET REPORT - Tuesday, Nov 10, 2020

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Dollar Index rebounded from near two months low and surged to fresh weekly high on Tuesday after U.S. drugmaker Pfizer Inc said its experimental COVID-19 vaccine was more than 90 per cent effective, based on initial trial results.

U.S. President-elect Joe Biden has hailed as a “breakthrough” after the announcement. Meanwhile, US President Donald Trump accused pharma giant Pfizer on Monday night of withholding its COVID-19 vaccine announcement until after the US elections.

“The US Food and Drug Administration (FDA) and the Democrats didn’t want to have me get a Vaccine WIN, prior to the election, so instead it came out five days later -- As I’ve said all along!” – Trump said.

EQUITIES

Global stocks trading steady on Tuesday as investors are encouraged by the victory of Democrat Joe Biden in the US presidential election and positive COVID-19 vaccine update from Pfizer. While the US futures retreated from the highs after Cleveland Federal Reserve Bank President Loretta Mester said the emergency lending programs the Fed set up during the coronavirus pandemic are still needed.

OIL

Crude oil prices climbed to two-week highs after renewed vaccine hopes and comments from Saudi Arabia’s energy minister Prince Abdulaziz bin Salman who said that the OPEC+ deal on oil output cuts could be adjusted as it has been in the past if there is consensus among members of the group.

CURRENCIES

In the currency market, the British pound trading strong against the US dollar and Euro following the mixed UK employment data. The currency pair also supported by comments from the British finance minister Rishi Sunak that there was significant progress made on the Brexit negotiations front.

GOLD

The gold price slightly rebounded from the previous session lows. The yellow metal plunged more than 5% on Monday after the positive vaccine news which raised optimism of a global economic recovery.

Economic Outlook

On the data front, The UK Unemployment Rate for 3 months ending September rose from 4.5% to 4.8% while the claimant Count Change in October fell by 29.8K, contrary to forecasts of an increase of 36K. On the other hand, China's annual inflation rate eased to 0.5% in October from 1.7% in the previous month and below market expectations of 0.8%.

On the earnings front, Beyond Meat (NASDAQ: BYND) stock plunged more than 20% on Monday after the company reported weaker-than-expected third-quarter results. “We experienced the full brunt and unpredictability of Covid-19 on our net revenues,” CEO Ethan Brown said.

Coronavirus update:

Worldwide, more than 50 million people have been confirmed infected and more than 1.25 million have died, according to Johns Hopkins University.

Technical Outlook

EUR/USD:
At the time of writing, the currency pair trading below the short-term support level of 1.1800. If the bearish momentum continues the next downside levels to watch today 1.1760 and 1.1710.

eurusd


The important levels to watch for today: Support- 1.1760 and 1.1710 Resistance- 1.1850 and 1.1890.



GOLD: The yellow metal retreated back to below $1880 after it failed to break above $1890 resistance level.

gold neww


The important levels to watch for today: Support- 1860 and 1848 Resistance- 1880 and 1890.

Quote of the day: An investor without investment objectives is like a traveller without a destination- Ralph Seger.

Read more- https://gulfbrokers.com/en/daily-market-report-205
 
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