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Coronavirus Concerns and Diminishing Stimulus Hopes Boost Dollar, Weigh on Gold

This is what you need to know to trade today Monday, October 26:

A sentiment of risk aversion has gripped the markets as coronavirus cases rise in Europe and the United States. Talks about fiscal stimulus appear to be on the brink of collapse in Washington and also weigh on the mood. Talks about Brexit and next week’s US elections will draw the attention of investors.

Coronavirus in Europe: Several European countries reported records of new COVID-19 cases and mounting pressure on hospitals. Among the most significant events are more than 50,000 new cases in France and a new state of emergency in Spain. EUR / USD has fallen from the highs around 1.1850. The German IFO business climate and the Bundesbank’s monthly report will draw investors’ attention.

US fiscal stimulus: Republicans and Democrats appear to have reached the limits of the progress made last week. Politicians have started the blame game, apparently trying to score points before the election. The GOP-controlled Senate is concentrating on confirming Amy Coney Barret for the Supreme Court.

Elections: The weekend has been a slim one in post-presidential debate polls, but so far, candidate Joe Biden continues to lead ahead of President Donald Trump. There will likely be a large number of polls on Monday and Tuesday. Investors are trying to assess the chances of a “blue wave,” a victory for the Democrats in the battle for the White House and Congress, allowing for a generous aid package.

Covid cases in the US They continue to rise, breaking records above 80,000 infections per day in recent days. Hospitalizations and mortality are also increasing. Marc Short, Vice President Mike Pence’s chief of staff, tested positive for COVID-19.

Vaccine: News in the UK suggests that National Health Service staff could receive a vaccine before Christmas, while others point out that distributing a vaccine to the general world population would take many months.

Brexi; EU chief negotiator Michel Barnier has extended his stay in London, a sign of progress in the talks. State aid and fisheries remain the thorniest issues, as both sides aim to seal an agreement in mid-November.

He oro it has fallen below $ 1,900 amid risk aversion. He petróleo WTI it has also reacted and stepped out of its narrow range amid concerns about global growth.

During the weekend, cryptocurrencies have consolidated their gains, with Bitcoin hovering above $ 13,000 and Ethereum surpassing $ 400.

The new home sales in the United States They are on the economic calendar today and another figure is expected above the annualized million.


Credits: Forex Street

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