Last session market review
The dollar rose on Wednesday, with the dollar index.dxy ending modestly higher at 97.37, the dow Jones industrial average up more than 1,170 points, while spot gold tumbled to close at $1,636.60 an ounce.
On Thursday, the focus will be on U.S. data such as durable goods orders, federal reserve governor William Williams, bank of England governor mark carney and the European Union’s chief brexit negotiator michel barnier. In addition, Opec will hold its 178th meeting and the bank of Canada will release an economic development report.
This market focuses on the monthly rate of retail sales in the United States in July and the monthly rate of retail sales in the United Kingdom in July.
Fx: eur/usd closed at 1.1133; The pound closed at 1.2870; The Australian dollar closed at 0.6626; Usd/jpy 107.52; Us $1.3384; The dollar closed at 0.9567 Swiss francs.
Commodities: spot gold closed at $1,636.48 an ounce; Comex gold ended at $1,643 an ounce; Spot silver settled at $17.20 an ounce; Comex futures ended at $17.246 an ounce; Brent crude settled at $51.13 a barrel; NYMEX crude settled at $46.78 a barrel.
In the currency market
The euro opened at $1.1104 in New York last session, trading moderately higher, before trading around $1.1133 late in the day. From the technical point of view, MACD red kinetic energy column small contraction, KDJ index high dead fork downward, indicating that the short – term upward momentum slightly blocked. The initial resistance to the upward movement of the exchange rate is 1.1183, the further resistance is 1.1231, and the key resistance is 1.1275. The initial support for the decline of the exchange rate was 1.1090, further support was 1.1047, and more critical support was 1.0998.
GBP/usd: this session opened at 1.2809, during which the pressure fell, and ended trading around 1.2866. From the technical point of view, the MACD green kinetic energy column continues to contract, KDJ index up close to the Central Line, indicating the exchange rate in the near future upward kinetic energy is still released. The initial resistance to the exchange rate rise is at 1.2906, further resistance at 1.2941, more critical resistance at 1.3009; The initial support for the decline of the exchange rate is located at 1.2803, further support is located at 1.2734, and more critical support is located at 1.2700.
Usd/jpy: the session opened at 107.38, recovered slightly during the session, and ended around 107.55. From a technical point of view, MACD green kinetic energy column moderate contraction, KDJ index low is still facing down, indicating that the exchange rate is still large downward pressure. The initial resistance of the exchange rate upward is at 107.86, further resistance at 108.20, more critical resistance at 108.71; The initial support for the fall in the exchange rate is at 107.01, further support at 106.50, more critical support at 106.17.
The stock market
Stocks in Europe and the U.S. : former vice President Joe Biden’s big Super Tuesday victory Wednesday sparked a massive rally in the health care industry and sent stocks soaring. The dow rose 1,173.45 points, or 4.5%, to 27,090.86. The s&p 500 rose 4.2 percent to 3,130.12, while the nasdaq gained 3.8 percent to 9,018.09. It was the second time in three days that the dow had moved 1,000 points or more.
On Tuesday, the federal reserve’s emergency rate cut sparked hopes that other major central Banks might follow suit, sending European stocks higher on Wednesday. The pan-european stoxx 600 index temporarily closed up more than 1 percent. Utilities led the gains, rising more than 3 per cent, while travel and leisure shares bucked the trend and fell 2 per cent.
The bond market
The yield on the 10-year Treasury note briefly fell below 1% on Wednesday, but then doubled and rose further after the federal government announced an $8 billion spending plan to help fight the spread of the coronavirus. The yield on the benchmark 10-year Treasury note fell as much as 3 basis points to 0.973 per cent before rising to about 1.04 per cent in afternoon trading. On Tuesday, the benchmark interest rate breached the 1 per cent mark for the first time after the federal reserve made an emergency cut to offset the impact of the coronavirus on the economy. The 10-year yield hit a record low of 0.906% in the previous session. The yield on the 30-year Treasury note fell to 1.612%, near an all-time low.
International spot gold started at $1640.55 an ounce in early trading on Wednesday, then quickly climbed above the $1,550 mark and hit a new high of $1,652.10 an ounce before easing slightly from the high and moving into a tight range. Around the opening of the European market, spot gold quickly plunged to a new low of $1,631.60 an ounce, then bounced. After the U.S. market opened, gold prices intensified short – term volatility, fluctuating between the rise and fall, the final close at $1,636.48 an ounce.
COMEX gold for April delivery closed down $1.40, or 0.09 percent, at $1,643 an ounce.
U.S. WTI crude for April delivery closed down 40 cents, or 0.9 percent, at $46.78 a barrel on Wednesday. Brent may futures closed down 73 cents, or 1.4 percent, at $51.13 a barrel on Wednesday. Bullish sentiment has been dented by the seeming difficulty among major producers in reaching an agreement on additional production cuts. U.S. WTI crude hit an intraday low of $46.65 a barrel, while brent hit an intraday low of $51.04.