EURUSD failed to resume the ascent at the start of the week and turned negative in recent trading
Wall Street stocks finished higher overnight, with Apple surging 6.35% ahead of a new iPhone launch. Other large technology companies such as Facebook and Google parent Alphabet also saw strong gains, as investors shrugged off the lack of progress over US stimulus talks in Washington. The tech-rich Nasdaq Composite Index jumped 2.6%. the Dow Jones Industrial Average advanced 0.9%, and the S&P 500 climbed 1.6%.
Today in Asia, equities saw mixed trading as risk sentiment has deteriorated somewhat despite fresh data showed China’s exports grew at a faster pace last month. The official report showed that exports was up 9.9% in September from the year before. Imports jumped 13.2%, up from -2.1% in August. Still, the Shanghai Composite finished just 0.03% higher while South Korea’s Kospi shed 0.02% and Japan’s Nikkei 225 gained 0.18%. Hong Kong’s Hang Seng index had trading suspended due to a typhoon.
European equities opened marginally lower, with investors waiting for the earnings season to kick off in the U.S. on the negative side, Johnson & Johnson has paused the clinical trial of its coronavirus vaccine because of an “unexplained illness” in one of the volunteers. Elsewhere, Germany’s minister of state for Europe, Michael Roth, said they wanted a Brexit deal but were prepared for a no-deal outcome as well.
Meanwhile, dollar demand picked up on Tuesday as the risk-on tone has waned. EURUSD failed to resume the ascent at the start of the week and turned negative in recent trading, nearing the 20-DMA gradually. Once below this moving average that arrives at 1.1750, the pair could see a deeper retreat in the short term. Later today, the US CPI data could affect EURUSD.
Elsewhere, oil prices are back around $42, making recovery attempts after a two-day sell-off amid a recovery in global supply amid a still weak demand outlook due to the ongoing COVID-19 pandemic. Brent crude needs to overcome the 20-DMA in the short term to extend the rebound to the $42.50 area where the 100- and 200-DMAs converge.
