Equities Slide as COVID-19 Infections Hit New Daily Record

Risk-linked Assets Fall, Safe Havens Shine on Accelerating Virus Cases

The US dollar traded higher against the majority of the other G10 currencies on Thursday and during the Asian session Friday. It gained against NZD, NOK, CAD, GBP, and AUD in that order, while it underperformed versus JPY, EUR, CHF, and SEK.

Euro Stoxx 50 — Technical Outlook

The Euro Stoxx 50 cash index traded lower on Thursday, after hitting resistance near 3475 on Wednesday. That said, despite the current retreat, the index continues to trade above the prior downside line taken from the high of July 21st, and thus, we would treat any further declines as a corrective phase. We still see a somewhat positive near-term outlook.

AUD/JPY — Technical Outlook

AUD/JPY traded lower yesterday, falling back below the support (now turned into resistance) level of 76.25, marked by Tuesday’s low. Overall, the pair continues to trade above the prior downside resistance line drawn from the high of August 31st and thus, even if the retreat continues for a while more, we will see decent chances for another round of buying.

As for Today’s Events

During the European session, Eurozone’s 2nd estimate of GDP for Q3, and the employment change for the quarter are coming out. The 2nd estimate of GDP is forecast to confirm its preliminary print of 12.7% qoq, while no forecast is available for the employment change.

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