untitled design

Markets perk on hopes of a US stimulus deal, election polls in focus

This is what you need to know to trade today Wednesday, October 21:

Stocks and gold rise as the safe-haven dollar falls on hopes that US lawmakers will establish an aid package for the economy. Tensions over the elections, Brexit talks and the rise in COVID-19 cases in the eurozone are in the spotlight.

Fiscal stimulus: House Speaker Nancy Pelosi reported progress in talks with Treasury Secretary Steven Mnuchin on a new aid package. While differences persist, Pelosi let her deadline expire and both sides are reportedly drafting a bill.

On the other hand, the New York Times reports that Senate Republicans remain opposed to pushing for an agreement with Democrats, as it would divide the party and serve to delay the Supreme Court appointment.

Elections: President Donald Trump enjoyed a relatively better day in opinion polls, with national polls showing a smaller distance from his opponentnet and with state polls pointing to a tighter race in several key states. However, FiveThirtyEight and The Economist suggest, on average, a 90% chance that Joe Biden will become president.

Trump and Biden will face off in a televised debate Thursday night and will continue to campaign before the event. Recent polls are in the spotlight.

He EUR/USD it has been advancing above 1.1850, the highest level in a month. Investors are ignoring the growing cases of coronavirus in the old continent that are causing new restrictions. Christine Lagarde, President of the European Central Bank, will speak later in the day along with several colleagues.

Brexi: The EU and the UK remain in contact, but have not yet resumed face-to-face negotiations. According to Bloomberg, Brussels wants to give Prime Minister Boris Johnson the lens of victory, while refusing to give ground.

Inflation in the UK stood at 0.5% annually in September, as expected. On Tuesday, Bank of England member Gertjan Vlieghe said the BOE is leaning toward more stimulus. GBP / USD is trading close to 1.30.

Canada releases inflation and retail sales figures later in the day. He USD / CAD it has fallen below 1.31 amid the weakness of the dollar. The loonie has also benefited from a moderate rise in oil prices, with the WTI topping the $ 41 level.

The cryptocurrencies They continue their uptrend, with Bitcoin breaking above the 12,000 level seen as resistance.

See 2020 US Elections: Seven Reasons This Isn’t 2016, It’s Time To Focus On The Senate

Credits: Forex Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular