Asian Equities Benefit from G20 Meeting; Dollar Weakness Helps Gold Climb to Record Heights!
Asian equities benefit greatly after Group of 20 governments agreed to maintain stimulus efforts and Axa SA and AMP Ltd. made the region's biggest takeover offer this year. Gold climbed to a record after the dollar fell.
Gold for immediate delivery reached an all-time high of $1,107.10 an ounce as USD weakness caused investors to increase their holdings in gold. The dollar declined against 13 of its 16 major counterparts on renewed expectations of low borrowing costs. In the U.S. Oil rose as a hurricane disrupted Gulf of Mexico production.
Crude oil for December delivery in New York rose as much as 1.3 percent to $78.34 a barrel in after-hours trading as Hurricane Ida, packing 105 mile-an-hour winds, entered the southern Gulf of Mexico. Offshore output along the U.S. Gulf accounted for 28 percent of national output in June, according to U.S. Energy Department data.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4875 with a preference to enter into long positions at 1.4885
- The GBPUSD pivot point is at 1.6640 with a preference to enter into long positions at 1.665
Today's calendar and market movers:
- CAD Housing Starts expected to increase to 158K
US equities finished slightly higher on Friday despite the unemployment rate reaching 10.2%. Right after the NFP report, price action in equities and currencies was volatile. The major US averages initially moved to the downside, before making their way for a positive close. At the closing bell the Dow Jones closed up 0.17%, the S&P closed up 0.25% and the NASDAQ closed up 0.34%.
As of 07:00 GMT the Nikkei is trading at 0.2% and the Hang Seng at 1.45%.