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Daily Outlook – 23 Sep 2020
By: Andria Pichidi
- RBNZ maintains rates – They are prepared to provide additional stimulus
- Senate pass stopgap fund bill to avoid a government shutdown as government funding running out on Sept. 30 – end day Dec. 11
- FDA to toughen vaccine rules
- UK: WFH, £200 no mask, pubs & restaurants close at 10 – Restrictions may last 6-months
- Sunak draws up a new plan to subsidize workers’ wages – GER30 and UK100 futures are up 0.8% and 0.9%.
- ECB PEPP must be temporary
- Germany to vote to 96B new debt
- 1st day Powell: Ongoing Monetary support; main street loans approved or in the process are now 230, totaling roughly $2b
- Australia: Westpac said the RBA could ease policy as early as October; Australian retail sales fell back -4.2% m/m; – ASX outperformed and AUD dropped
- Japan’s preliminary composite PMI nudged only slightly higher, adding to signs that the economy will take a while to recover and will continue to rely on monetary and fiscal support
- Tesla sets goals of a $25K tesla model, a new ultra-fast version, and huge reductions in battery costs
- China has halted the import of seafood products from a Norwegian firm after coronavirus was found on the packaging.
USDIndex – safe-haven bid the dollar when risk assets sell-off hard
EUR – hit a 2-month low below 1.1700 barrier
GBP – extends to 1.2678
JPY – up to 105.20 against the stronger USD.
CAD – ranging within 1.3300-1.3350
AUD – 2nd day below 50-DMA
NZD – down at 0.6600 but sustains an upwards channel
Gold – down 0.6% to $1,889
Oil – held just under $40 as demand worries persisted.
TODAY: Fed Chair Powell 2ND day testimony, Trudeau’s throne speech
Biggest mover (Silver Dec 20 – 4.80%) The XAGUSD is one of the main underperformers in Futures, with a sharp drop 5 days in a row. The asset reversed already more than 50% of gains seen since June. Intraday it extending its price action way below Ichimoku, 20-50- and 200-SMA, with momentum indicators negatively configured. 1H ATR at 0.23 and Daily ATR at 0.99
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