Framework agreement forming, GBP and EUR back to star list.

(Source: KVB PRIME)

Equity Market

US market rose back bit. SP 500 achieved 2% rise at most and closed at 3351.6.NASDAQ rose 1.91% at 11364.45. DOWs closed higher by 1.51% at 27584.06. Technology section keeps strong performance while Air service fought back.

Framework agreement drafting leads to strong EURO market. DAX saw a 3.22% increase at 12870.87. FTSE is strong but relatively weaker comparing with DAX with a 1.46% rise at 5927.93.

The Chinese market trading volume shrink another 10% trading volume. As of close, Shanghai Stock index went down by 0.06%, SZSE Component index went down 0.42% and GEM index went down 0.75%.

Crude oil forward contracts:

 WTI kept weak during Asia market time but fought back to day high at $40.76 in EURO market time. It closed at $40.56 per barrel, 0.12% rise.

Brent climbed back 1.68% at $42.48 per barrel.

Precious metal forward contracts:

Gold price fluctuated above $1850 during Asia and EURO market time. Price boosted in US market time and hit day high $1880. It closed up by 1.07% at $1879.90.

Silver grow 3.46% at $23.67 per ounce.

Currency pairs

USDX：Close down 94.56 -0.297%

EUR/USD：Close up 1.16625     -0.298%

GBP/USD：Close up 1.28348     -0.598%

AUD/USD:  Close up 0.7071   -0.560%

NZD/USD：Close up 0.65514     -0.089%

USD/CAD：Close down 1.33915         -0.279%

USD/JPY：Close down 105.5     -0.123%

Global Fundamental

US

The White House and House Speaker Nancy Pelosi (D-Calif.) resumed discussions over a possible economic relief bill as Democrats offered a $2.2 trillion package and Treasury Secretary Steven Mnuchin immediately engaged in talks.Democrats described their new offer as an updated version of the $3.4 trillion Heroes Act the House passed in May, which the White House and Senate Republicans dismissed as far too costly.

Mester from FED said: US inflation is lower than the Fed's goal but will eventually rise if recovery continue. She also expected US unemployment rate to end year in 7% to 8% range.

Donald Trump yesterday teared into the New York Times for 'made-up, phony' story that he paid no income tax for 11 years, just $750 in 2016 and 2017 and reported huge losses across his business empire. He denied the report on Sunday, calling it 'total fake news'.

EURO

he FCA and the Bank of England encourage market participants in further switch to SONIA in interest rate swap markets. The FCA has engaged with interest rate swap liquidity providers as well as inter dealer brokers to determine support for a change in the quoting conventions of sterling interest rate swaps in the inter dealer market.The market for SONIA derivatives is already well-established. These changes are intended to support a further move of new sterling swaps trading to SONIA and reduce risk by limiting new LIBOR exposures.

liz Truss said UK and US is consolidating trading agreement to remove EURO effect and equity from previous agreement to reach a new deal. Michael Gove has said parts of a bill which override provisions in the Brexit deal agreed with the EU would remain, despite EU requests to remove them. He also said the UK's negotiating position is still "far apart from what the EU can accept".

Gold

David Tait, World Gold Council CEO stated: 2020 ETF investment in GOLD is over $60 billion， 50%more than the amount in 2009. Associating with demand from Eastern countries growth, Western demand turns warm.

Major Assets Analysis：

EUR/USD &GBP/USD

EUR and GBP followed our analysis and went to 2 consolidation patterns prospectively. Due to close to the deadline, EURO and UK took the last chance seriously and drafted framework structure to state out the importance of the meeting and ensure both sides have noticed future agreement’s validity. However, currently, there is no progress for Northern Ireland issue. We still hold pessimistic attitude towards future progress. This week the prices will keep current draw back trend in short term with EURO resist at 1.1683 and GBP at 1.287. Support levels are the same as yesterday.  

(Source: KVB PRIME)

(Source: KVB PRIME)

AUD/USD

Price tested 0.708 following our analysis but it wont stop. Price has high possibility to further test 38.2% of previous trend at 0.7138. For long term placement, AUD will be still weak with support at 0.702.

(Source: KVB PRIME)

XAU/USD

Gold price fit in our scoping and tested 1876. It might test further resist at 1890 shortly. Gold price trend fit in scenario 2 so risk control is essential when we participate. Support is still at 1850. The price will cross over both weekly and daily moving average and is going to form rise up pattern soon. 

(Source: KVB PRIME)

USDX

USDX dropped through our first support at $94.4 and touched second support at $94.13 as we discussed last Friday. The price is facing key position at $94. Weak USDX will be main strategy in following two days. Please pay attention on progress between UK and EURO. 

(Source: KVB PRIME)