News

Dollar Holds Steady ahead of Jobs Figures

USD

The dollar index, which measures the greenback against a basket of major currencies, held steady near 92.55, its lowest level since the 22nd of October, as the Federal Reserve signaled the continuation of the current path in monetary policy. The Fed concluded its two-day monetary policy meeting by keeping interest rates and asset purchases unchanged as widely expected. Fed Chairman Jerome Powell declared that the economy continued to recover, highlighted the risks erupting from the second wave, and ensured the need for fiscal and monetary stimulus. On the other hand, investors are awaiting further clarity about elections, with Biden leading and Trump going for legal action. Moreover, the Bureau of Labor Statistics will report the October job figures, which could intensify the risk-on mood if they were stronger than expected.

Equities

Major US stock index futures eased slightly, as investors await US jobs figures and further clarity on the election outcome. Republicans have filed challenges in different states as Biden continues ahead with the race. Trump claimed voter fraud in several states but didn't provide any evidence. If Biden manages to win Pennsylvania or Georgia, he will diminish the chances of any change in results, where the market could cheer the clarity. Whereas, if the race continues to be tight and ends with 270-268, we could go for further complexity, which could weigh on the market. The Dow Jones Industrial Average futures hovered near 28200, the S&P500 futures held steady slightly below 3500, and Nasdaq futures fluctuated below 12000.

Metals

Precious metals prices soared as the US treasury yields tumbled along with the United States dollar. The US 10-year yields declined from a five-month high of 0.93% to 0.72%. The price of a gold ounce managed to breach the resistance zone of 1930 and rally to $1952, the highest level since September 21st. Meanwhile, the price of a silver ounce raced higher to the upper bound of the wide consolidation zone of $22.50-25.50, and palladium futures surged to $2437.

Oil

Oil prices drifted lower as the covid19 cases continued to surge around the world, signaling more tough restrictions. The United States and European countries logged record single-day cases. Governments could be deciding on additional measures to stop the spread, which would impact oil demand levels. On the other hand, Biden is still ahead in the political race. The West Texas Intermediate crude December delivery dropped to $37.59, and Brent Blend January delivery fell to $39.74.

Major Economic Events

GMT Country Event Expectation Previous

13:30

US

 Average Hourly Earnings (MoM) (Oct)

0.2%

0.1%

13:30

US

 Nonfarm Payrolls (Oct)

600

661

13:30

US

 Unemployment Rate (Oct)

7.6%

7.9%

13:30

CA

 Employment Change (Oct)

-7.5

378.2

13:30

CA

Unemployment Rate (Oct)

9.0%

9.0%

 

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