Nov 7
VOT Research Report
Analytics and Considerations
Beginning of the week, markets are rather tranquil as investors analyze recent developments. Market investors are forced to take a cautious approach due to China’s poor trade numbers and the diminishing confidence about China reducing coronavirus-related restrictions. September Consumer Credit Change will be the only data presented in the US economic schedule later on in the session. For new inspiration, the November Sentix Investor Confidence for the eurozone will be reviewed. Investors are the last.
China’s trade surplus increased slightly in October, from $84.74 billion to $85.15 billion, but it still fell far short of the market’s forecast of $95.95 billion. In contrast to experts’ expectations of 14.8% growth in exports, actual growth in imports was 6.8%, which was somewhat higher than the market estimate of 6%. On November 6, China reported 5,496 fresh cases of COVID-19 that were locally acquired. This figure is the biggest daily increase since May 2, when severe lockdown procedures were implemented.
US stock index futures are trading slightly down overall in the early European morning, and the US Dollar Index is holding onto marginal daily gains at about 111.00. The reference yield on US Treasury bonds for 10 years is currently hovering over 4.1%.
The EURUSD has entered a phase of consolidation near 0.9950 early Monday following the impressive rebound on Friday. The European Union’s (EU) central bankers continue to hold divergent views regarding the outlook for policy, making it challenging for the common currency to maintain its bullish momentum.
The Irish Times was informed by Francois Villeroy de Galhau, a member of the ECB Governing Council and governor of the French central bank, that they were not far from the neutral rate, beyond which the rate of increase could be more flexible and slowed down.In the meantime, German statistics showed that Industrial Production grew 0.6% monthly in September .Despite the fact that this reading was significantly higher than the market’s expectation of a contraction of 0.8%, it did not assist the Euro (EUR).
The GBPUSD is trading in a constrained channel just above 1.1300 and is struggling to consolidate last Friday’s gains. The Guardian claimed over the weekend that British Finance Minister Jeremy Hunt was poised to unveil tax increases and spending cuts of up to 60 billion pounds ($67.82 billion), including at least 35 billion pounds ($39.56 billion) in cuts. Nevertheless, it really doesn’t appear that the performance of the pound sterling relative to its competitors has been much impacted by this headline.
Early on Monday, USDJPY began to gain bullish momentum and moved up towards to the mid-147.00s. Tuesday’s opening trade hours of the Asian session will see the Bank of Japan release the Summary of Opinions.
Early on Monday, gold began staging a significant recovery and was last spotted down 0.85% for the day at $1,667. XAUUSD increased by more than 3% on Friday, reaching $1,682, its highest point since mid-October.
Bitcoin shed around 2% on Sunday and continued to slide early Monday after reaching its highest level in almost two months at $21,500 on Saturday. BTCUSD was trading at $20,800 at the time of publication, down 0.5% on the day. Over the weekend, Ethereum continued to experience slight bearish pressure and lost all of its weekly gains. The most recent movement of ETHUSD was sideways and just over $1,500.
