A weaker dollar sent the euro to fresh one-month highs around 1.870
US stocks rose on Tuesday amid a series of strong earnings reports and developments on a fiscal stimulus deal. Procter & Gamble, Regions Financial, Albertsons, and Travelers reported quarterly results that were better than expected. Meanwhile, Netflix shares fell 6% in after-hours trading after the company’s mixed third-quarter results pointing to a tally of new subscribers that fell short of expectations. As a result, the S&P 500 rose 0.5%, the Dow Jones Industrial Average gained 0.4%, and the Nasdaq Composite rose 0.3% after five sessions of losses.
Following gains on Wall Street, Asian stock markets were mostly higher on Wednesday, with investors keeping their eye on Washington in hopes of a deal to deliver more aid for the economy. South Korea’s Kospi was up 0.53% despite the PPI rising just by 0.4% year-on-year and 0.1% month-on-month in September, both lower than the previous readings. China’s Shanghai Composite finished 0.1% lower while the yuan jumped to the strongest levels since July 2018 amid speculation that a victory for Joe Biden next month will lead to better relations between the US and China.
In Europe, stocks opened on a positive note but failed to preserve the upside momentum and have retreated in recent trading, with Wall Street equity futures also slipping into the red as investors expressed concerns over the COVID-19 pandemic spread on both sides of the Atlantic. Fresh concern over a second wave was expressed by European Central Bank President Christine Lagarde, adding to the downbeat mood in the markets. The Stoxx Europe 600 index lost nearly 1% after a 0.4% drop during the previous session.
Despite risk sentiment turned sour again, the dollar kept bleeding on Wednesday, sending the euro to fresh one-month highs around 1.870 during the European hours despite overbought conditions. On the positive side, the common currency trades above the key simple moving averages while the RSI on the four-hour chart exceeded the 70 level, signaling the overbought conditions and implying a downside correction. Now, the immediate resistance arrives at 1.19. in case of a retreat, EURUSD will find the initial support of 1.1840.
Leave Your Opinion