Markets sink in a sea of red, US data awaits

October 29, 2020

Markets were hammered again overnight, with lockdowns, trade tensions and pre-election volatility all contributing.

Traders again piled into the USD, putting pressure on paired currencies. The EURUSD opened the day at $1.17943 and ticked up to a high of $1.17964 shortly afterwards. The decline began soon after and accelerated mid-session, hitting lows of $1.17172. It has come off those lows and is now trading at $1.17452. The GBPUSD started the day at $1.30427 and looked in better shape early, edging up to a high of $1.30631 mid-session. That was swiftly met with sharp declines as the pound hit lows of $1.29156 heading into late trading. The pound regained some of those losses and is now trading at $1.29887.

Indices were once again belted, with the Dow and Dax bearing the brunt. The Dow opened at 27,344.11 and bumped up to a high of 27,361.31 in the first hour of trade. It remained steady for several hours before the rot set in mid-session. This saw the Dow ultimately plummet to lows of 26,491.78 late in the day. It has bounced off those lows and is now trading at 26,707.30. In the face of new lockdowns in Germany and France, the Dax copped a pasting overnight. The German index began the day at 11,927.92 and rose to a high of 11,960.02 early. It collapsed under the weight of negative sentiment and sellers piling in as it hit lows of 11,449.44 late in the day. Recouping some of those losses, it is now trading at 11,596.80.

In amongst all of the negative news swirling around, there is still some economic data set for release. The US will be publishing Advance GDP data tonight. The economy is expected to have expanded by 32% over the last quarter, rebounding from the 31.4% contraction it experienced the quarter before.

Other data published today includes:

Japan – BoJ Policy Rate, Monetary Policy Statement, Outlook Report and Press Conference, Consumer Confidence

UK – M4 Money Supply, Mortgage Approvals, Net Lending to Individuals

Europe – ECB Main Refinancing Rate, Monetary Policy Statement and Press Conference, German Prelim CPI, Spanish Flash CPI

US – Advance GDP Price Index, Unemployment Claims, Pending Home Sales, Natural Gas Storage


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