EURO and China has the plan, UK internal market bill fall

Equity market:

(Source: KVB PRIME)

US stocks recovered. SP 500 maintains the same as the day before. NASDAQ rise 1.72% at 11277.76. Dows climbed back 1.18% at 27993.33.

EURO market stuck in mud, FTSEwas down by 0.1% at 6026.25. DAX slightly fall by 0.07% at 13193.66

Chinese market reconsolidated up withShanghai Stock index closedup 0.57%, SZSE Component Index increased 0.61% and GEM index recovered 1.42%.

Precious metal forward contracts:

Gold hit $1940 day bottom in the morning and turned strong back to $1950. After reconsolidation, the price rise during US market, hitting day high at $1962 and closed up 0.87% at $1956.3 per ounce.

Sliver closed down 1.48% at $27.11 per ounce.

OilForwardsContract：

WTI struggled back from $37to $ 37.65 day high. But the price dropped to day low $36.8 during US market time open. It closed down again by 0.17% at $37.23per barrels.

Brent oil went down 0.5% at $39.5.

Currency pairs：

USDX：Close down 93.04   -0.215%

EUR/USD：close up1.1865  -0.203%

GBP/USD：close up1.28457 -0.424%

AUD/USD:  close up0.72898     -0.119%

NZD/USD：close up0.66994       -0.531%

USD/CAD：Close down 1.31742-0.082%

USD/JPY：Close down 105.693-0.374%

Global Fundamental：

US：

Steny Hoyer, Majority Leader, said“The House is aiming to vote next week on a stopgap spending bill to keep the government open when the fiscal year ends on Oct. 1.”Senate Republicans and the administration favour a temporary funding bill lasting past the election into December, given that Congress has few scheduled days in session in November. Some Democrats are seeking a stopgap into next year, when they hope to gain control of the Senate and White House and to have more power over final appropriations bills for the year.

Microsoft confirmed that itsbid on TikTok has been rejected while Oracle is chosen as TikTok’stech partner, on 14^th Sept. However, the real progress between Tiktok and Oracle will be pending before US government approval.

EURO：

The proposed law giving Boris Johnson's government the power to override parts of the Brexit agreement with the EU has passed its first hurdle in the Commons. In turn, many Tory MPs are sure that the wrangling over the UK Internal Market Bill won't filter through to their constituents, and EU is planning to delay the service permit for currency clearance forUKclients.

Jap：

Yoshihide Suga wonthe selection on 14^th Sep, and become next Japanese leader after Shinzo Abe steps down.

Oil：

OPEC adjusted the expectation of oil demand cut off from 9.06million barrels/ day to 9.46million barrels. It is second month OPEC adjust down the expectation due to over supply and less demanding. OPEC is expecting to cut another 0.7 million barrels daily production in 2020 and 110 million barrels din 2021. OPEC may permit Iraq and other supplier countries to further cut off production from Oct to Nov. Currently, Saudi Arabia is not on the list.

Major Assets Analysis：

EUR/USD&GBP/USD

37 and 57 pips for EUR and GBP is the answer for yesterday strategy. There is no further information disclosed regarding yesterday’s meeting between EURO and China, which we need to follow up with. The UK internal bill legislation willfurtherpulldown both EUR and GBP. Therefore, we would keep our mid term layout. For short term, tonight, EURO fundamental information would not be positive. So, we can expect GBP/USD further fall to 1.276 while EUR/USD would climb to 1.188 and then start to drop back to weekly EMA

(Source: KVB PRIME)

AUD/USD

AUD/USD price movement perfectly fitted into box patten due to weak USD yesterday. The price is expecting to test the box top at 0.7305 and then fall to box bot at 0.7258. If the price doesn’t break 0.7305 with strong candlestick, our expectation for 45pips of the box and another 40 pips below with strict risk control.

(Source: KVB PRIME)

XAU/USD

Gold price perfectly follow our prediction : price went back to $1950 and fall $11 which provided $7 profit margin even missed the reconsolidation. When close to US noon market time, gold price boosted with share market. The price is enhanced in today‘s Asian Market. The gold price would come back to $ 1970 today, but might face pressure when EURO market open with $8-10 drop.

(Source: KVB PRIME)

USDX

Yesterday profit margin: $0.13 out of $ 24 was good but not perfect. Without strong fundamentals, yesterday USDX went weak but story may be different due to weak EURO fundamental. USDX has high possibility to rise back to 93.2 and another further boost with strong US fundamental. Please note even the data might be good but US real economy is still recovering slowly, so if USDX hit 93.4, long position should release the profit and leave the market for a short break.

(Source: KVB PRIME)

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