Equities downbeat: US Dollar weak

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Daily Outlook – 21 Sep 2020

By: Andria Pichidi

  • Japan is off on Monday and Tuesday – low volumes
  • 10-year Bund future is fractionally higher, Treasury futures are outperforming
  • GER30 and UK100 futures are currently down -0.7% and -1.1%, Hang Seng dropped -1.4%
  • ECB launches review of PEPP program, with extension looking likely
  • HSBC Holdings Plc came under pressure, with shares falling to the lowest level since 1995, on fears it could be added to a Chinese list of firms deemed a threat to national security and following news it had been accused of allowing fraudulent activity to go unpunished, AFP reported.
  • PBOC refrained from further stimulus
  • President Donald Trump approved Oracle Corp.’s bid for the US operations of TikTok “in concept.” – And he banned n WeChat and TikTok application from the states.
  • UK: resurgence in infections.
  • New Zealand’s lockdown alert level reduced

EUR – steady to 1.1850 area – virus concerns. – PP at 1.1842

GBP – higher at 1.2955 on optimism over a deal. PP ay 1.2940 and R1 at 1.2970.

JPY – 6-day downtrend continues. At 2- month lows at 104.26 (S1). PP is at 104.55

CAD – tested 1.3200 but currently is at 1.3189 (mid of week’s range.

AUD – gained. Above 0.7300 handles.

Gold – sustains $1950 amid the dollar weakness, ahead of the Fed Chairman Jerome Powell’s speech.

Oil – dropped to $40.60, profit-taking despite the US storm-led production halt.

Cryptocurrencies’ traded modestly flat, with Bitcoin probing the $11K level.

TODAY: Chicago Index, FED’s Powell, Brainard, and Williams speech.

Biggest mover (AUDUSD + 0.31%) It regained above 0.7300 barriers after PM Morrison prediction of job bounce back and as Victoria state reopens. Overall remains choppy within the 0.7200-0.7400 area, while intraday retests Friday’s highs, but struggles to break R1 at 0.7320 for 5 hours in a row. Currently reversed slightly from day’s highs, while Fast Mas looks sideways suggesting a possible consolidation intraday. MACD is mixed, with the signal line at 0 and RSI fails of direction at 56. Stochastic posted a bearish cross below OB are1H ATR at 0.0012 and Daily ATR at 0.0065


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