Stimulus Hope Sent Dollar Lower

STATE OF THE MARKETS

Prospect of a fresh stimulus deal being strike by the weekend, sent Dollar lower as investors cashed in profits on equities. Major indices closed lower on profit taking with DJIA fell 0.35% where declining counters outpaced advancing counters by 2,002 to 1,046. The benchmark 10 year note yield settled higher at 0.815% compared to 0.796% on Tuesday.

Gold that has traded higher for few days on the back of US stimulus, almost hit last week high before pulling back on profit taking. Oil futures saw a drop in demand as US Cushing reported a less than expected reduction in storage plus the uncertainties of the OPEC+ deals loom before it’s next meeting in November.

On the FX front, greenback continues to lose demand while investors look to buy Sterling on the news that EU Brexit negotiator will be en-route to London to resume trade talks; which saw Sterling jumped as high as 1.3175.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is weekly 
and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price

WALL ST TOP FLOWS

** % change here refers to volume

TOP 5 BLOCK ORDERS

PICK OF THE DAY – CRUDE OIL

We favor selling crude oil futures given current risk-off sentiments and bleak demand in the after effects of the pandemic. Though the price rally for four months since May, we believe it was mere profit taking from the sell-off that began earlier this year when oil was around $65.50 a barrel. Plus two monster orders that came in at $42.30 for June 2021 and $40.40 for December, hopes are high that markets are seeing gloomy days ahead, especially if the US election result is contested and political uncertainty prevails.

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.