Dollar Tops Stocks Futures Fluctuate

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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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