Dollar slides, equities lower, tech stocks off
The dollar is lower, as traders adjust positions following a volatile “risk-off” week of trading ahead of next week’s election. Tech stocks were punished yesterday, as Apple and Twitter missed earnings estimates. The European Central Bank strongly implied it will ease policy in December, using all monetary tools at its disposal. China announced its new Five-Year plan, which will focus on technology, productivity and modernity. Asian equities dropped, but European equities edged higher. US equities are opening lower. Bond yields are higher, oil is flat, and gold is higher.
October 30, 2020
EUR/USD 1.1685 GBP/USD 1.2963 USD/CAD 1.3303 AUD/USD 0.7055 USD/JPY 104.5100 USD/CNH 6.6863 USD/ILS 3.4082 USD/MXN 21.2106 USD/CHF 0.9152 USD/INR 74.1100
The dollar is lower across the board, as traders adjust positions established in a week of “risk-off” trading ahead of next week’s elections. Apple and Twitter missed earnings estimates, dragging the all-important US tech sector lower. This morning’s US economic releases – Personal Income and Spending exceeded expectations, and PCE Deflator and Employment Cost Index met expectations.GBP
The UK pound moved higher following news of solid progress with the EU-UK Brexit trade negotiations, but the GBP/USD currency pair remains under $1.30. Nationwide House Price data for October released this morning beat expectations.EUR
The euro edged higher in-line with broad dollar weakness, but remains trading under $1.17. Yesterday, ECB President Lagarde kept benchmark rates unchanged, but indicated that they would increase stimulus at the December meeting and would do so using all available tools at its disposal. Q3 GDP figures for France (up 18.2% QoQ) and Spain (up 16.7%) exceeded expectations, but European equities as a group underperformed overnight.CAD
The Canadian dollar is up slightly on the back of the broadly lower US dollar and on upbeat GDP data in Canada for August. Lower Raw Material prices and Industrial Product prices are providing headwinds.ASIA/PACIFIC
The Chinese yuan gained 0.5% overnight following news from China’s new Five-Year plan, promising to build a strong China based on technology, productivity and modernity.
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