TRACKRECORD DAILY
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TRACKRECORD DAILY

Winter is Coming

The spread of the virus is clearly still a problem in US, Russia and France and many others in Europe

TRADING PLAN

  1. Gold & Silver — Strong support for Gold is at 1850–60. For silver, major support is at 21.80–90 with minor support at 23.50–60. Gold and Silver were trading well before the weakness in US stocks dampened risk sentiment and dragged them lower. Gold has since recovered despite the lingering weakness in stocks. Silver is not far behind. Should stocks stabilise, the current phase of weakness could be running its course.

WHAT HAPPENED YESTERDAY

  • Dollar advanced on Monday, bolstered by safe haven bids amid surging coronavirus cases in Europe and the United States as well as a lack of progress on a U.S. stimulus package. The United States (+69,841), Russia (+17,347) and France (+26,771) set new daily records for new COVID-19 infections as a second wave swelled across parts of the Northern Hemisphere, forcing some countries to impose new curbs. Spain (+17,396) announced a new state of emergency and Italy (+17,012) has ordered restaurants and bars to shut by 6 p.m. On the stimulus front, U.S. House Speaker Nancy Pelosi said on Sunday she expected a White House response on Monday to the latest relief plan, but there is little evidence a deal is close. The EUR, which has the largest percentage share of the dollar index, fell 0.4% to $1.1811. It slipped earlier after the German Ifo business (92.7 vs expected 93.1) climate index fell for the first time in six months in October. The Dollar rose 0.5% against the CNH in the offshore market to 6.703, in a sign of caution as the Chinese government began discussions on its next five-year plan.
  • The S&P 500 fell 1.9% on Monday on familiar concerns surrounding the economy, although it was down as much as 2.9% intraday. The Nasdaq Composite declined 1.6%, the Dow Jones Industrial Average declined 2.3%, and the Russell 2000 declined 2.2%.
  • U.S. District Judge Amit Mehta on Monday set a status hearing on the Justice Department’s antitrust lawsuit against Alphabet Inc’s Google for Friday. The Justice Department last week sued the $1 trillion company and accused it of illegally using its market muscle to hobble rivals in the biggest challenge to the power and influence of Big Tech in decades.

HEADLINES:

PELOSI OPTIMISTIC OF COVID-19 RELIEF DEAL BEFORE Nov. 3 U.S. ELECTIONS-AIDE

DAY AHEAD

Australia Inflation Report (CPI), Weds Morn: CPI in the second quarter showed a decline of 1.9%, the first decline since 2016. Trimmed CPI, which excludes the most volatile items in the headline release, also posted a rare decline, with a read of -0.1%. The headline figure is expected to bounce back in Q3, with a forecast of 1.5%. Trimmed CPI is projected to show a small gain of 0.3%.

SENTIMENT

FX

Market Observation

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Best,
Phan Vee Leung
CIO & Founder, TrackRecord

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