Research Report 22nd September 2020 | Forex News

Research Report 22nd September 2020 | Forex News | Global Markets News

September 22, 2020

Asia-Pacific were opened lower today and extended losses for the second consecutive day. Mainland Chinese stocks edged lower, with the Shanghai Composite down 0.49 % to 3,330.52. Hong Kong’s Hang Seng Index also lost 0.64% to 23,140.5. South Korea’ Kospi finished its trading day 2.72% lower to 2324.8.

Japanese market is closed today as the country observes “autumn equinox”. In Southeast Asia, the Straits Times index in Singapore declined 1.14%. The S&P/ASX 200 was trading higher at 0.49% to 5,779.5.

European stock markets opened lower on Tuesday, as there is a possibility of delay in expanded U.S stimulus and investors sentiments are bearish as there are concerns about fresh pandemic lockdowns in Europe. In the cash markets, the DAX futures contract in Germany traded 0.34% lower to 12,571 , CAC 40 futures in France dropped 4.38% to 4,819, while the FTSE 100 futures contract in the U.K.was up 0.44% to 5,791.

The U.S. stock market was also down early Tuesday morning. The Dow Jones was trading lower at 1.84% to 27,147.70 and S&P 500 also lost 1.84% and was at 3,281.06.The Nasdaq100 futures was trading lower by 0.13% at 10,778.

In the Individual Equity segment, the best performers of the session was Xero Ltd, which rose 4.39% or 4.00 points to trade at 95.06 at the close. Meanwhile, Fisher & Paykel Healthcare Ltd added 4.07% or 1.17 points to end at 29.94 and Healius Ltd was up 3.90% or 0.130 points to 3.460 in late trade. The worst performers of the session were Webjet Ltd, which fell 6.04% or 0.23 points to trade at 3.58 at the close. Corporate Travel Managment Ltd declined 5.78% or 0.97 points to end at 15.81 and Virgin Money PLC was down 5.04% or 0.07 points to 1.32.

In the Corporate News, Chinese tech giant Tencent’s WeChat messaging app has seen a surge in downloads in the United States since Friday after Washington confirmed it would push ahead with a planned ban of the app. The U.S. Department of Commerce issued an order requiring Apple Inc and Alphabet Inc’s Google to remove WeChat for downloads on national security grounds, but a U.S. judge blocked the move on Sunday.

On the Economic Front, Australia’s central bank is assessing various monetary policy options including currency market intervention and negative rates to meet its inflation and employment goals, Deputy Governor Guy Debelle said on Tuesday. The Reserve Bank of Australia (RBA) had slashed interest rates to a record low 0.25% in an emergency meeting in mid-March to backstop the economy from the coronavirus crisis.

On the data front, Minutes of the Monetary Policy Committee meeting of the Central Bank of Brazil will be held at 7:00. U.S. Existing Home Sales data will be present at 10:00 previous sales was 4.70M and Forecast was 5.38M. Federal Reserve Chair Jerome Powell is to testify on the economic outlook and recent monetary policy actions by 10:00 local time. New Zealand interest rate decision at 22:00 previous interest rate was 0.25% and forecast was 0.25%. Reserve Bank of New Zealand Rate Statement at 22:00.

In the currency markets, the Dollar Index rose 0.1% to 92.838. EUR/USD dropped 0.12% to 1.1752, while GBP/USD edged down 0.12%% to 1.2858. USD/TRY inched up 0.18% to 7.604. USD/CNY traded lower 0.2% to 6.7906. AUD/USD inched down 0.19% to 0.7208 and NZD/USD down 0.05% to 0.6617, at the time of writing.

In the Commodity Markets, Gold rose on Tuesday morning .The Gold futures prices rose by 0.30% to $1,916.40, on Monday. Spot gold (XAU/USD) was down 0.03% at $1,911.89 per ounce. Elsewhere, silver futures rose 0.89% to $24.92 per ounce and platinum climbed by 0.22% to $893.74, while palladium edged 0.28 % higher to $2,283.70, at the time of writing.

Oil prices rose early trade on Tuesday paring sharp overnight losses, as the latest tropical storm in the Gulf of Mexico lost strength, but worries about fuel demand persisted with flare-ups around the globe in coronavirus cases. Brent crude futures rose 0.3% to $41.58 a barrel. U.S. West Texas Intermediate, Crude futures for October, due to expire on Tuesday, rose 0.5% to $39.50 a barrel. The more active November contract rose 0.3% to $39.67.

In the Cryptocurrency Markets, BTC/USD inched down 3.52% and was trading at 10,481. Ethereum edged down 8.76% to $344.33. Litecoin declined 8.18% to 43.810, and Dash inched down 3.69% to 68.49,at the time of writing.

TECHNICAL SUMMARY

EURUSD