US futures rise as the market remains optimistic about stimulus
US futures are rising as traders reflect on the ongoing corporate earnings and stimulus talks. According to Mark Meadows, the White House chief of staff, Nancy Pelosi and Steve Mnuchin are still making progress on the talks even as wide differences remain. Also, in a letter to Democrats, Pelosi said that she remains positive that a deal will be reached before the election. She called it “safer, bigger, better, and retroactive.” Still, the biggest challenge is on whether a deal between the White House and Congress will be accepted by Senate Republicans, who favour a smaller package.
The market also continued to react on corporate earnings. The most notable name was Netflix, which reported weak numbers leading its shares to fall by 6%. The company added just 2.2 million subscribers, down from the 16m and 10m it added in the first and second quarters. The company’s revenue rose by 23% to $6.4 billion while its net income rose to more than $790 million. Another notable company was Snap, whose shares rose by 20% in aftermarket trading after the company reported better earnings. It made $679 million in revenue, beating the consensus estimates by $555 million. The revenue grew by 55% year-on-year.
The price of crude oil rose in overnight trading as the market continued to focus on the stimulus talks. A stimulus would be a good thing for oil prices because it would increase demand. The price also rose even after the American Petroleum Institute (API) released more inventories. The US added 584k barrels, more than the 1.9 million drawdowns that analysts were expecting. Last week, the institute released a drawdown of more than 5.42 million. Later today, the price will react to inventories numbers from the EIA. Analysts expect the data will show that the inventories fell by more than 1 million barrels.
The EUR/USD price moved above the key resistance level of 1.1832 as the market remained optimistic about a stimulus deal. This resistance was the highest level in October. It is above the 25-day and 15-day exponential moving averages while oscillators like the Relative Strength Index (RSI) and the Relative Vigour Index (RVIs) have continued to rise. Therefore, the pair is likely to continue rising as bulls aim for the next resistance level at 1.1870.
The XBR/USD price rose to an intraday high of 43.22. On the hourly chart, the price is above the 15-day and 25-day exponential moving averages. It has also formed a small bullish gap. The RSI and the Average True Range (ATR) have continued to rise. The price is along an important resistance level. Therefore, the price is likely to continue rising as bulls aim for the next resistance at 42.00.
The EUR/GBP pair rose ahead of the important UK inflation data. It is now trading at 0.9128, which is closer to the highest level on October 7. On the four-hour chart, the price has moved above the pink descending trendline that connects the highest points in October. The 15-day and 25-day moving averages have also made a bullish crossover while the RSI has moved close to the overbought level. The pair may continue rising as bulls aim for the next resistance at 0.9200.