US stocks fell sharply yesterday. In the early stage, China’s GDP was positive for the second consecutive quarter, and it was a risk-on development. But after that DJIA fell 463 due to the difficulty of discussions on additional economic measures.
In forex market, risk-on USD selling and JPY selling were dominant until the middle of the US market, but after that USD and JPY were repurchased (please see currency strength below).
EURUSD gained a buying advantage from London market and temporarily rose to 1.179 in the early part of the US market, ending the US market around 1.173 and surpassing the 20 daily moving average for the first time in 4 days. Like EUR, GBP also has buy-back advantage, temporarily rising to 1.3024. The decline last weekend has been recovered, and it maintained over 20 daily moving average, and the flow of repurchases since September 23 is continuing.
The shape of chart has improved a bit for both EUR and GBP. EURUSD has crossed the 20-day moving average for the first time in 4 days and has also surpassed the Weekly Pivot. However, in both Europe and UK, the second wave infection of COVID-19 and lockdown are likely to have an impact.
AUD is down again this morning.
Yesterday’s currency strength
US market yesterday
DJIA: 28,195.42 (-410.89, -1.44%)
NASDAQ: 11,478.88 (-192.67, -1.65%)
S&P 500: 3,426.92 (-56.89, -1.63%)
GOLD: 1,905.9 (-5.8)
OIL: 40.69 (-0.14)
US 10-YR: 0.772 (+0.01)
VIX: 29.18 (+1.77)
Asian market today
Nikkei: 23,630~ (-42)
CME Dow future: 28,230~（ +34 Dow）
Economic indicators today
GMT 00:30 (AU) RMA minutes
GMT 12:30 (US) Housing Start, Housing Permits