Biden/Pfizer Fuelled Risk-On Rally

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Daily Outlook – 10 Nov. 2020

By: Stuart Cowell

Equities, Yields, Oil (with help from OPEC), and EM currencies all rallied, USD ticked up, as GOLD, JPY and CHF tanked. More to come on the vaccine front, news may weaken the need for more stimulus. McD’s beat expectations and launched plant-based “MCPLANT” – Overnight – JPY news weak, CNY missed CPI expectations, and in the UK weak retail sales and a big rise (0.3%) in Unemployment to 4.8%. TRUMP legal ramblings start China, Russia & North Korea no comment so far on Biden.

USDIndex – up from 92.00 (S1) zone to 92.70 highs – now at 92.70 – pp 92.60, s1 92.30 R1 93.00

EUR – from 1.1900 – highs to 1.1800 low. – 1.1825 now. PP 1.1840.

JPY – 103.17 lows – all the way back to test 105.50. Now, 105.00 being tested. PP today – 104.76

GBP – Tested 1.3200 (R1) again – but remains capped here. Now 1.3170 (PP) S1 1.3120

AUD – under 0.7300 (pp) now – but holds at 0.7280. S1 0.7260

NZD – Holds break over 0.6800. Trades at 0.6830 now. PP 0.6810 – r1 0.6850

CAD – down to test 1.2950 yesterday – now 1.3000

CHF – rallied to 0.9125 from sub-0.9000 yesterday

BTC – tested down to 15k – 15,300

GOLD – Crashed to 1850 from 1965 yesterday. Trades at 1886 (PP)

USOil – rallied to $41.30 yesterday – now $40.25

USA500 – Closed +41 (1.17%) 3550 – USA30 rose 2.95% to 29,158 (USA100 closed lower) USA500 FUTS now at 3550.

Today – German ZEW, Fed’s Rosengren, Quarles, Kaplan, ECB’s Knot, and US 10yr supply. Earnings from Eastman Kodak, Tencent, Deutsche Post & Infineon

Biggest (FX) Mover @ (07:30 GMT) AUDJPY (-0.31%) –. JPY recovery playback under 20 MA, but holds over PP at 76.30 Fast MA’s non- aligned, RSI 52 neutral, MACD histogram & signal line aligned lower but significantly above 0-line. H1 ATR 0.1786 Daily ATR 0.8700.


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