This is what you need to know to trade today Tuesday, October 26:
The greenback managed to outperform its European rivals after rising US Treasury yields on Monday, but remained weak against risk-sensitive currencies. As investors prepare for this week’s high-impact events, the dollar is holding firm. Market sentiment remains relatively optimistic ahead of new home sales data and the US CB consumer confidence index. Talks about Brexit will continue in London and the European Central Bank (ECB) will release the findings of its survey on bank lending.
Risky mood: The S&P 500 hit a new all-time high of 4,572 on Monday and risk flows continue to dominate financial markets early Tuesday with US stock index futures rising between 0.2% and 0.5%. US President Joe Biden signed an order Monday to lift travel restrictions on China, India and many European countries. Additionally, Democrats are said to be closing a deal on the spending bill, which will run between $ 1.5 trillion and $ 2 trillion.
On a worrying note, the cases of coronavirus are increasing again. China warned that the latest COVID-19 outbreak is likely to spread further and Russia reported a record number of 37,930 cases on Monday.
After failing to break above 1.7% last week, the US Treasury yield at 10 years it gained more than 1% during the trading session on Monday before closing flat at around 1.65%, where it continues to move sideways on Tuesday.
The EUR/USD It lost nearly 40 pips on Monday as the latest data from Germany showed a deterioration in sentiment and the Bundesbank revised its 2021 growth forecast lower. Currently, the pair is testing 1.1600.
GBP/USD is struggling to gain traction since David Frost, the British minister responsible for implementing the Brexit deal, said the EU’s proposal on the Northern Ireland protocol did not go “far enough” to free up trade in the region.
Despite the renewed strength of the dollar, the oro it rose above $ 1,800 on Monday and appears to have entered a consolidation phase. The strong rally seen in the XAU / USD and XAU / GBP pairs suggests that investors turning away from European currencies are increasing demand for precious metals.
USD/JPY it clings to modest gains around 114.00 as the safe haven JPY fails to attract investors in the current market atmosphere.
Cryptocurrencies: After arranging a correction toward $ 60,000, the Bitcoin started to aim higher following reports that Mastercard is looking to offer crypto services to banks and merchants on its network. Ethereum It also continues to rise, on its way to $ 4,400, where it is the all-time high.
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