EUR/USD Price and Gold Eye the Upcoming US Data

EUR/USD Price and Gold Eye the Upcoming US Data

Equities rally, Gold and oil stabilize, what moves markets today?

Equities

The US stock markets rallied on positive ADP numbers, the data came in stronger than expected however, the coronavirus surge weighed heavily on some sectors like aviation and entertainment as some US airlines prepare to layoff tens of thousands of workers unless they get federal aid.

The US fiscal stimulus deal remained in the negotiations stage as Democrats reduced their demands from $3.4trillion to $2.2 trillion. However, the US administration offer was below the $2.0 trillion thresholds as presented a new “generous” offer of $1.5 trillion with $20 billion extensions in aid for the airline's industry. The ball now is in Democrat’s court.

Europe has stepped up measures to combat the Coronavirus resurgence. The Czech Republic issued a 30-day state emergency, and the UK PM asked people to work from home and said he would not hesitate to impose new restrictions.

Stock Market

Change %

S&P 500

+0.7%

Dow Jones

+1.2%

NASDQ

+0.9%

Japan 225

-0.5%

DAX 30

-0.5%

FTSI 100

-0.5%

CAC 40

-0.4%

Currencies

The US Dollar index retreated further on Thursday eyeing a test of the inverted head and shoulders neckline located at 93.47. A daily close below that level could send the price even lower towards 92.73.

The EUR/USD bearish momentum has slowed down and rallied eyeing a test of 1.1909. That said, a daily close below 1.1713 could send the price even lower to re-test 1.1621. A better than expected non-farm payrolls data on Friday may send the pair even higher.

GBP/USD benefited from a weaker US dollar and rallied above 1.2773 hinting to test 1.3048. Nonetheless, markets pay attention to the EU/UK negotiation’s updates, as the hard Brexit risk is not reflected in the Sterling pound price. The UK has offered some concessions in the fisheries track and now it is up to the EU to decide if they are enough or not.

Commodities

Rising numbers of Coronavirus kept oil price fundamentals are weak due to worries of lower fuel demand. The Brent oil remained below $42.50 and indicated a possible downward move towards $39.60, while the US Crude bears could press towards $38.37.

The gold steadied above $1,861 hinting towards $1,921. However, a close below $1,861 could send the precious metal towards $1,796.

Looking Ahead

Eyes will be on the US PCE index numbers with the initial jobless claims at 4:30 PM (UAE time). At 5:30 PM comes the Canadian manufacturing PMI final read for September, and at 5:45 and 6:00 PM the US Markit and ISM manufacturing PMI data will be released. By 7:00 PM the Fed member Williams speaks.

The information presented herein is prepared by Mahmoud Alkudsi and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research.

Key Way Markets Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.