Listen for the latest market mood for the SPX.
There are reports that there has been some progress towards a stimulus deal, but not enough to make a deal imminent before the US elections. Equity markets recent falls have been due to the disappointment of no US stimulus deal looking likely before the US election.
However, with either a President Trump second term or a Joe Biden victory the US stimulus package is still expected to pass after the US elections. This means that any meaningful dips in the S&P500 before the US election should find buyers.
However, traders should be aware of the large risks involved with holding positions over the US elections next week and square positions before the elections.
Trade Risks
The main risk to this trade is some very negative COVID-19 news, like more shutdowns across the world, which causes equity markets to sell off sharply.
Another risk is if the chances of a US stimulus deal fade and/or the package offered is smaller than the market expects.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.