News

Dollar Index Slides along with Treasury Yields

USD

The dollar index, which measures the dollar performance against a basket of major currencies, extended losses falling to 92.25, as investors favored riskier currencies. The optimism over a vaccine that would put an end to the pandemic and revive the economic activity raised risk appetite. On the other hand, the Federal Reserve Chairman Jerome Powell indicated significant downside risks to the recovery in the near term, and a vaccine is a support in the medium term. He still urges further action on the fiscal side while expressing readiness to do more on the monetary policy if needed to support the recovery. The USDJPY declined to 103.84, the EURUSD rose to 1.1885, and the GBPUSD rallied to $1.3280, driven by optimism over Brexit trade talks.

Equities

Major US stock index futures eased a little following Moderna's headline rally. The economy has been recovering faster than expected. However, the current increase in coronavirus cases is imposing risks in the near term, while the vaccine will take some more time to be available. On the other hand, the challenges circulating a smooth transition to Biden is also weighing in. The Dow Jones Industrial Average fell to 29565, the S&P500 futures dropped to 3585, and Nasdaq futures declined to 11915.

Metals

Precious metals prices slumped as investors favored riskier currencies following vaccine headlines. The price of a gold ounce dipped to $1876, the price of a silver ounce tumbled to $24.31, while palladium futures hovered near $2340.

Oil

Oil prices edged higher amid optimism over oil producers' intentions to take the needed measures to stabilize the market. The Joint Ministerial Monitoring Committee meeting indicated that oil producers were compliant with cuts. Investors were afraid that the current lockdown measures would weigh on oil demand levels and drive prices lower. But, OPEC+ guarantees to stabilize the market eased woes. The West Texas Intermediate crude December delivery rose to $41.55, and Brent Blend January delivery rallied to $43.99.

Major Economic Events

GMT Country Event Expectation Previous
10:00 EZ  CPI (MoM) (Oct) 0.2% 0.1%
13:30 US  Building Permits (Oct) 1.560 1.545
13:30 US  Housing Starts (Oct) 1.460 1.415
13:30 CA  CPI (MoM) (Oct) 0.2% -0.1%
15:00 EZ  ECB President Lagarde Speaks  - -
15:30 US  Crude Oil Inventories -0.913 4.278

 

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