Forex Today: Dollar Recovers Amid Stagnant Stimulus Talks, Focus on US Data and EU Summit

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This is what you need to know to trade today Thursday, October 15:

Markets are falling and the safe-haven dollar is somewhat on offer as talks on US fiscal stimulus are stalled as the clock ticks towards the election. Brexit and rising coronavirus cases are high on the EU Summit agenda, ahead of US jobless claims and other figures.

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The US Fiscal Stimulus Talks Going Nowhere for now. Less than three weeks before the election, Treasury Secretary Steven Mnuchin appears frustrated at the lack of progress. He was one of those who proposed to negotiate a large aid package, contrary to the Senate Republicans, who focus on the Supreme Court. Democrats rank first in opinion polls ahead of the Nov. 3 vote and seem reluctant to give President Donald Trump a political victory.

Elections: Both the current president and the candidate, Joe Biden, will hold televised debates with citizens separately at the end of the day. Models show that there is a 90% chance of a Biden victory, while the Senate is a game of chance. Today’s markets prefer a clean Democratic win that facilitates big tax spending.

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It is anticipated that Unemployment claims in the United States resume your decline and approach 800,000. The Philadelphia Fed Manufacturing Index is expected to remain in positive territory.

Brexi: GBP / USD advanced above 1.30 after the UK refrained from leaving the talks. However, EU leaders are prepared to hear that no progress has been made in recent talks on future relations between Brussels and London.

The coronavirus cases in the euro zone are increasing, generating additional restrictions throughout the old continent. In particular, France imposed a night curfew on Paris and other cities. German officials have warned they will apply new measures following a spike in infections.

Christine Lagarde, president of the European Central Bank, will speak later in the day. The increase in COVID-19 cases could provoke pessimistic comments leaning towards further action.

He AUD/USD has dropped significantly after Phillip Lowe, Governor of the Reserve Bank of Australia, said that could cut rates to 0.1% and leave rates at very low levels for an extended period of time. The RBA’s pessimistic stance outpaced a better-than-expected jobs report from Australia, where the unemployment rate remained below 7%.

He oro It has been struggling around $ 1,900 following the lack of progress in the stimulus talks, while WTI oil is flat at around $ 41.

The cryptocurrencies They have been consolidating their recent gains, with Bitcoin around $ 11,300.

Credits: Forex Street

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