- More action measures, which makes investors continue to bet that the European Central Bank may still further expand QE efforts this year.
- This trading day mainly focuses on the progress of Brexit negotiations and the U.S. election dynamics.
- During the trading session, international oil prices fluctuated and dropped.
During the trading session on Monday, the euro retreated to the 1.17 mark against the US dollar. Previously, European Central Bank President Christine Lagarde said that the ECB currently has not exhausted all available policy tools and options, and can still come up with more if necessary in the future.
More action measures, which makes investors continue to bet that the European Central Bank may still further expand QE efforts this year, which constitutes an additional negative for the euro exchange rate.
The market is still evaluating the prospects of the the Brexit agreement. Spot gold fluctuated higher than $10. Supported by the demand for hedging, the global secondary epidemic intensified.
Many European places have taken control measures again, and Asian stock markets have also fallen, and gold has gained certain hedging support. This trading day mainly focuses on the progress of Brexit negotiations and the U.S. election dynamics.
Asian Time Market Review
During the trading session, the pound rose against the US dollar, and the exchange rate is now at 1.2937, an increase of 0.17%. The market is still evaluating the prospects of the Brexit agreement.
Earlier, Britain’s Brexit Secretary Michael Gove said that the door to a Brexit agreement was still open, which regained confidence in the market and pushed the pound exchange rate to outperform other European currencies, such as the euro and Swiss franc. However, the pound fluctuated in a wide range.
The trend of the market has not changed, because there are still many variables in the negotiation prospects between the United Kingdom and the European Union, and a new wave of investor sentiment may appear at any time.
At the same time, the continued strength of the US dollar index will also hinder the exchange rate of non-US currencies from further upward. The pound still has a strong range upper rail resistance above 1.30 in the short term, and it will be supported at 1.2850 below.
During the trading session, spot gold fluctuated higher, and is now at $1,907.15 per ounce, an increase of 0.4%. Although the volatility is limited, gold is still operating at a high level. Monetary policy is still in a loose pattern.
During the trading session, international oil prices fluctuated and dropped. U.S. Oil is now reported at $40.98/barrel, a decrease of 0.34%. Brent crude oil is now reported at $42.80/barrel, a decrease of 0.31%. Market risk appetite has cooled down, and domestic stock markets have been under pressure.
Zhang Shuxian, head of the macro department of Westpac Bank, said that although China’s GDP rebound in the third quarter was not as strong as expected, this year growth rate of 4.9% is still very good.
In addition, the market is worried that the OPEC+ technical committee may have more pressure to increase production at the monthly meeting, which will make the crude oil bulls feel panic in advance and exit their positions. But overall, the oil market is still trading in the $38-42/barrel range.