The time has finally arrive

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Daily Outlook – 2 Nov. 2020

By: Andria Pichidi

It’s going to be a long, anxious week for the markets with the elections, the potential the result won’t be known on Tuesday night, the FOMC and BoE, a number of key data reports, and a plethora of earnings.
Stocks and bonds lost ground on Friday, extending the general trend in October.
The NASDAQ underperformed to end the month as Q4 earnings from big tech overshadowed solid Q3 earnings. Apple, Amazon, and Facebook shares slumped on Friday as investors expressed their dissatisfaction with the trio’s earnings on Thursday. Apple closed 5.6% lower, Amazon slumped 5.5%, and Facebook dropped 6.3% – A total $2trn wiped from the value of US equities

  • Treasuries lost ground even as Wall Street tumbled as demand for cash saw heavy selling in bonds.
  • China Oct Manufacturing PMI stronger than expected at 53.6
  • Japan Manufacturing PMI revised up to 48.7 in final October reading

USDIndex – on a bid for a fourth day – rallied to 94.18, PP 93.90, R1 94.20

EUR – little changed at 1.16431 – Germany’s lighter version starts today

GBP – ready to cross again below 1.2900 (October 15 low) ) (the UK in lockdown, BoE is expected to widen its asset purchase program as investors hope for negative rates as well).

AUD – tested 0.6990 low earlier. Now 0.7002 PP 0.7037

CAD – steady at 1.3330-40 area

CHF – Rallied to test 0.9178 (6-day rally)– PP 0.9159, R1 0.9181

BTC – Opens the week above 13,700 holdings close to 2-year highs

GOLD – Tested down to 1873 but currently sideways above 1880

USOil – Fell at $33.63. Now below S2 34.44 – Rising supply, along with Covid lockdown related demand destruction should keep a cap on prices for the foreseeable future

TODAY: European, Canadian, and British PMIs along with ISM PMI from the US.
Earnings: PayPal, Estee Lauder, Mondelez, Waste Management, Westpac, SBA communications, Clorox, Williams Companies, Skyworks Solutions, Marathon Petroleum, FirstEnergy, CDW, Arista Networks, Ingersoll Rand, FMC, Alliant Energy

Biggest gainer – GBPUSD -0.32% – Extends below 1-month uptrend and below the 20- and 50-DMA, Intraday momentum indicators slope further down suggesting an increasing bearish bias, with RSI at 40.79 and MACD lower from Friday’s session. 1H ATR at 0.0016 and Daily ATR at 0.01176


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