21092020 US equity market loss control？More pressure on the USD price.

(Source: KVB PRIME)

Friday is always black, US market dropped again. Dows decreased 0.88% at 27657.42; NASDAQ declined by 1.3% at 11247.60; SP500 went weaker after Tiktok released Pre-IPO inform and dropped 1.12% at 3319.47 while Tencent rose.

The EU went weak as well.  took moral high ground in the negotiations with the DAX dropped 0.7% at 13116.25 while FTSE was reduced by 0.71% at 6007.05. Technology and finance went warm against market.

The Chinese market climbed back. Shanghai Stock index, SZSE Component index and GEM index all increased by 2.07%, 1.77% and 1.52% respectively.

Crude oil forward contracts

Last Friday, WTI and Brent crude oil reconsolidated down. WTI dropped 0.16% at $40.88 and Brent Oil cut off by 0.49% at $43.06 per barrels.

Precious metal forward contracts

Gold price opened high but dropped quickly during Euro time, but it went back during US market time， closing up 0.33% at$1950.30 per ounce.

Silver price remained weak with a 1.05% decrease at $26.76/ounce.

Currency Pairs：

USDX：closed down 92.97         -0.108%

EUR/USD：closed down 1.18408   -0.030%

GBP/USD：closed down 1.29191   -0.391%

AUD/USD:  closed down 0.72888   -0.276%

NZD/USD：closed up 0.67566-0.108%

USD/CAD：closed up 1.32-0.312%

USD/JPY：closed down 104.581    -0.134%

Global Fundamental

US:

U.S. Democratic Party and Republican Party reached agreement on government spending to avoid white house shutting down in the coming financial year. The U.S. current account deficit widened by $59.0 billion, or 52.9 percent, to $170.5 billion in the second quarter of 2020, according to statistics from the U.S. Bureau of Economic Analysis. The revised first quarter deficit was $111.5 billion. The second quarter deficit was 3.5 percent of current dollar gross domestic product, up from 2.1 percent in the first quarter.

The federal government will send up to $14 billion in aid to U.S. farmers and ranchers struggling with falling prices, lost markets and other supply chain disruptions tied to the global pandemic, the U.S. Department of Agriculture announced Friday.

Apple Inc. stock under performs Friday and accumulated 2o% drop in the past 12 trading days with 500 billion market value shrink.

Iran：

EU High Representative for Foreign Affairs, Josep Borrell in a statement on Sunday rejected the United States' right to unilaterally restore international sanctions on Iran on a basis of an agreement it withdrew from."It cannot, therefore, be considered to be a JCPOA participant State and cannot initiate the process of reinstating UN sanctions under the UN Security Council resolution 2231. Consequently, sanctions lifting commitments under the JCPOA continue to apply," Borrell said in a statement."

Oil

Based on the report from Syria, there were30 tank trucks full filled with oil left Syria to Iraq. Syria stated all the oil in the tank trucks are stolen from Syria by US illegally and it has happened for couples of times.

Major Currencies analysis：

All information provided is general advise nature on prices and products, not aim to guide trades.

EUR/USD&GBP/USD

GBP dropped 42 pips following our strategy. Last weekend, US fundamental did not support strong USD---asset with high public recognition fall, Tiktok announced pre IPO and more stimulus plan suggested more liquidity on the market. Regardless there will be further development of UK and EURO drama in the middle of Oct, USD buyer power in short term is overwhelming. The price is also supported by both of EMA. EUR/USD will meet resistance at 1.19 while GBP’s is at 1.30. 

(Source: KVB PRIME)

AUD/USD

NZ economy and currency are supported more by recovery of China than AUS. AUS is still suffering from weak consumption. In terms of AUD, we still would like to hold previous opinion. Due to AUD and USD are equally weak at the moment, price is struggling around weekly and daily moving average so there is less opportunity in short term.  

(Source: KVB PRIME)

XAU/USD

Gold price fluctuation is cutting down in the past two weeks. Based on our big data, our prediction has been accurate to capture $7-9 per day. The price of Gold now is lacking momentum within the range from $ 1900-$1976. Risk event on market is Iran’s economic sanction. But we still hold negative attitude towards rising gold price.

(Source: KVB PRIME)

USDX

Based on our big data, the price was follow our prediction. Last US fundamental is strong against USD price. Price may test support at $92.7 and slow recover towards $92.7 based on certain percentage of stand deviation. 

(Source: KVB PRIME)