Dollar Inches Higher; Stock-Futures Retreat, Earnings Eyed


The dollar index, which measures the greenback against a basket of major currencies, moved higher to 93.27, as risk sentiment retreated a little. Investors are awaiting further clarification on the path of negotiations of the fiscal stimulus bill. On the other hand, the headlines of Johnson and Johnson pausing the vaccine trial weighed on risk appetite. The EURUSD dipped to $1.1777, the GBPUSD declined to $1.3024, and the risk-sensitive AUDUSD fell to $0.7164. Consumer Price Index figures for September are scheduled later on the day, and they would likely have an impact on the dollar.


Major US stock index futures eased slightly from their interim top as investors await further insight on the next fiscal stimulus bill. President Trump wants to support the economy by a deal that is good for republicans or stand-alone bills, but it seems like we are a bit far from approvals. On the other hand, Johnson and Johnson announced that it paused the vaccine trial due to a participant with an unexplained illness. Investors are also looking forward to the kick-off of the earning season to check how companies performed during the third quarter. The Dow Jones Industrial Average futures dropped to 28608, the S&P500 futures declined to 3509, and Nasdaq futures eased to 12022.


Gold price declined as the dollar strengthened, but the elevated chances of stimulus kept minimized losses. The price of a gold ounce dropped to $1910 before recovering to 1920, the price of a silver ounce held steady below $25, and while palladium futures hovered eased to $2430.


Oil prices drifted lower amid growing supply concerns. The production returned in the Gulf of Mexico, Libya, and Norway, while the resurgence of Covid19 in Europe is raising woes over the future demand levels. Another serious round of coronavirus forcing a lockdown could hurt oil-demand levels, and pressure Oil-producing countries to act again to stabilize the market. The West Texas Intermediate crude November delivery dropped to $39.34, and Brent Blend December delivery fell to $41.65.

Major Economic Events

GMT Country Event Expectation Previous
9:00 EZ German ZEW Economic Sentiment (Oct) 73.0 77.4
12:30 US CPI (MoM) (Sep) 0.2% 0.4%
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