This is what you need to know to trade today Monday, November 9:
The markets are in risk appetite mode after the media called Democrat Joe Biden the winner of the election. In addition to more election news, speeches by central bankers, Brexit, and coronavirus developments are in the spotlight.
The S&P 500 and gold futures have been spreading their gains while the dollar is on the defensive Monday, in response to Biden’s victory. The president-elect is beginning to work on the transition and will have to find a delicate balance between the party’s left and the centrists. Cracks have emerged in the party and nominations for key positions will be closely watched.
The Republican Party is also divided between those who support President Donald Trump’s refusal to concede, citing concerns about wrongdoing, and others who are moving forward. The markets currently view Biden’s election as a closed deal rather than a contested election. The additional count of swing states has left Biden’s leadership intact. The states have until early December to publish the final results.
The Senate control fate still up in the air. Two upper house races for Georgia will go into the runoff on Jan.5 and if the Democrats win, they could stay in control. Republicans made surprising gains in the House, but failed to take control.
Investors will follow any intention to pass a stimulus bill during the time between the elections and the proclamation of the new president in January.
The president of the Federal Reserve Bank of Cleveland, Loretta Mester, will be the first Federal Reserve official to speak after the bank opened the door to expand its bond buying scheme. The Non-Farm Payrolls surprised with an increase of 638,000 jobs in October and a drop in the unemployment rate to 6.9%.
Cases of COVID-19 they continue to increase in the northern hemisphere and may return to focus. Both German and French officials said the second lockdowns will likely have less of an effect on the economy compared to those in the spring. Christine Lagarde, president of the European Central Bank, will speak later in the day.
BrexiUK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke over the weekend and failed to make a breakthrough in future relationship talks. The House of Lords is expected to debate the prime minister’s controversial Internal Markets Bill (IMB) and return it to the House of Commons. The legislation knowingly violates international trade law in Ireland and is one of the issues in the negotiations, in addition to fisheries and state aid.
The GBP/USD maintains gains around 1.31, driven by the Bank of England’s rate decision last week. BOE Governor Andrew Bailey will speak later.
Turkey: The finance minister resigned shortly after President Recep Tayyip Erdoğan fired the central bank governor, increasing pressure on the lira. The USD/TRY has exceeded 8.
The Bitcoin it is trading around $ 15,000, consolidating its gains after recovering last week.
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Credits: Forex Street
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