This is what you need to know to trade today Friday November 6th.
Markets are taking gains and the dollar rebounds after the rally earlier this week. The US elections are not over yet, with markets glued to what happens in four states. The Fed hinted at more QE ahead of October’s Non-Farm Payrolls. Gold moves away from the highs, but Bitcoin rises.
Take profit: S&P 500 futures were down on Friday after rebounding for the week. The US dollar is trying to recover, regaining some ground against the major currencies, but remains around March lows against the yen.
The oro it is also falling after surpassing $ 1950 on Thursday. WTI crude oil is also moving down, struggling against the $ 38 level.
The Bitcoin seems unstoppable, trading above $ 15,700 at the time of writing, the highest level since January 2018. Other cryptocurrencies are lagging behind.
American elections: Democratic candidate Joe Biden has narrowed the gap with President Donald Trump in Pennsylvania and Georgia, and expanded his leadership in Nevada. The starter is behind the contender in Arizona, but has moved a little closer. Political analysts assess that Biden has a better chance of winning the presidency based on an analysis of pending votes.
Trump has repeated his unsubstantiated claims of fraud and he has called for voting to stop in the states in which he leads. Several fellow Republicans distanced themselves from these requests. The recount in Georgia could trigger a runoff in two Senate elections that could still tip the upper house in favor of Democrats, albeit on an extremely narrow path. On the other hand, Republicans have gained ground in the House.
The Federal Reserve has left the interest rate unchanged and it has opened the door to adjust and expand its bond purchase program. The Fed noted that the pace of the recovery has moderated and expressed concern about the resurgence of the coronavirus in the United States and abroad. He also reiterated his call for lawmakers to provide additional fiscal stimulus.
See Fed Analysis: Powell adds fuel to market fire by defending asset purchases, rally may extend
It is anticipated that US Non-Farm Payrolls show an increase of around 600,000 jobs in October, up from 661,000 in September. The pace of job restoration is slowing but remains strong. Bloomberg’s “whispered number” is 666,000, better than the economic calendar projects. The unemployment rate is expected to fall from 7.9% to 7.7%.
See Preview of US Non-Farm Payrolls: Encouraging Data, But Little Action Expected
It is projected that Canadá will report an increase of 100,000 positions in October, with the unemployment rate falling from 9% to 8.8%.
See Preview Canada Employment Report: Second Wave of COVID-19 Will Affect Labor Market Recovery
Brexi: EU and UK negotiators hit a roadblock earlier this week after several days of progress. Updates on the talks generally come out on Friday and could move GBP / USD, which remains above 1.31.
The British pound jumped after the Bank of england expand its bond buying scheme by £ 150bn, more than expected. The BoE also refrained from setting negative rates, but Gov. Andrew Bailey clarified that the option remains on the table.
See BoE Analysis: Bailey Gives Three Gifts to Pound Bulls, What Can We Expect?
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Credits: Forex Street
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