DAILY MARKET REPORT - Wed, Oct 21, 2020



US dollar edged lower amid rising hopes for the United States would conclude a new stimulus package. The next stimulus agreement could be worth up to $2 trillion and contain more direct payments to U.S. individuals and families. US House Speaker Nancy Pelosi said she remains hopeful of a stimulus agreement this week after speaking with Treasury Secretary Steven Mnuchin on Tuesday. Meanwhile, US President Trump said, “I want to do it even bigger than the Democrats,”


Wall Street ended higher on Tuesday on growing optimism on the U.S. stimulus deal. The Dow Jones Industrial Average rose 0.4% and the tech-heavy Nasdaq Composite Index advanced 0.3%. While the European stocks are trading lower as investors remain worried about surging coronavirus cases and some parts of Europe imposing renewed lockdown measures.


Crude oil prices retreated from the tops after weaker-than-expected API inventory data. The data showed 584k barrels of stockpiles were added in the week ending October 16 compared to a draw of 5.42 in the previous release.


In the currency market, the Canadian Dollar and Euro surged to fresh monthly high supported by the weaker US dollar. Moving ahead to the North American session the CAD traders are focused on the September CPI and retail sales figures.


Gold price appreciates on signs that US lawmakers could agree on a new stimulus package before the November 3 election.

Economic Outlook

On the data front, US building permits rose 5.2% mom to 1.55m annualized rate in September, above the expectation of 1.52m. Housing starts rose 1.9% mom to 1.42m, below expectation of 1.45m.

On the earnings front, Snap Inc (NYSE: SNAP) reported strong quarterly earnings results, and the shares climbed to an all-time high in after-hours trading. On the other hand, Netflix (NASDAQ: NFLX) shares fell more than 5% after the company reported weaker-than-expected Q3 results.

Moving ahead today, the important events to watch:

CANADA – Retail sales and CPI: GMT – 12.30

US – crude oil inventories: GMT – 14.30

Coronavirus update:

Globally, the number of people infected with the coronavirus across the world surpassed 40.7 million, of which at least 1.12 million people have died and 27.91 million have recovered, according to data released by the Johns Hopkins University.

Technical Outlook

The British pound trading strong against the US dollar and Euro following positive comments from EU chief Brexit negotiator Michel Barnier. He said the trade deal with London was within reach if both sides are willing to work.

gold neww

The important levels to watch for today: Support- 1.30 and 1.2950 Resistance- 1.3080 and 1.3130.

GOLD: The yellow metal trades steady above $1900 boosted by a weaker dollar. At the time of writing, the gold price trades around $1916.


The important levels to watch for today: Support- 1916 and 1908 Resistance- 1928 and 1932.

Quote of the day: Practical investors usually learn their problem is finding enough outstanding investments, rather than choosing among too many – Philip Fisher.

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