EUR/USD Price Trades Without Any Clear Trend, What Moves Markets Today?

EUR/USD Price Trades Without Any Clear Trend, What Moves Markets Today?

Growing Coronavirus cases continue to weigh on market sentiments while investors await a bunch of policy makers speeches this week.

Equities

Asian stock markets retreated slightly as investors monitor any progress in a US fiscal stimulus package and keep a close eye on the growing numbers of COVID-9 cases in Europe. The equity market benefited from low US interest rates and markets will try to seek more clarity about the Fed chairman testimony before the US congress this week.

On the other hand, the US president Trump approved on TikTok deal with Oracle and allowed the app’s operations to continue in the US. This deal may calm down the US-China trade war and this may continue until we know the identity of the new president of the US after the November 3nd elections.

Stock Market

Change %

S&P 500

-1.0%

Dow Jones

-0.7%

NASDQ

-1.2%

Japan 225

-0.3%

DAX 30

-0.8%

FTSI 100

-0.7%

CAC 40

-1.4%


Currencies

The US Dollar index continued on Monday its sideways move after failing on Friday to break above the Sep 9 high. Therefore, the index may continue falling towards 92.34 and any close below 91.78 would change the technical outlook to negative.

The EUR/USD technical outlook remains neutral while the pair trades in a narrow range of 1.1713 – 1.1909.

GBP/USD slipped last week after the hints made by the Bank of England of taking the UK interest rates to the negative zone. However, Sterling recovered some losses after the Ursula Von der Leyen the European commissioner stated that an EU/UK trade deal was still possible. From a technical point of view, a close below 1.2773 would change Cable’s outlook to negative.

Commodities

The oil price benefited from reports of halting productions in the Gulf of Mexico due to a tropical storm however, the Coronavirus growing cases worldwide continue to weigh on the crude price. The US Crude has rallied on Monday by 0.4%, while Brent oil remained flat. From a technical perspective, Brent may rally towards $45.15 while above $42.50.

The Gold price has kept trading without any clear trend. The yellow metal failed on multiple occasions to fall to the lower $1,921- $1,859 trading zone therefore, the price may rally towards $2,015.

Looking Ahead

Markets will tune in the ECB president Lagarde’s speech at 4:45 PM (UAE time) then the Fed Brainard’s speech at 8:00 PM.

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