"It ain't over till the fat lady sings" – goes the adage which is relevant for the 2020 Presidential Elections as well. Two weeks ahead of election day, there are signs that incumbent Donald Trump is clawing back some support, raising the chances that the race could drag on for longer. Before pointing to the encouraging signs for the president, it is essential to note that Biden's lead remains significant and that there major differences in comparison to 2016. These include the fact fewer undecideds, more high-quality state surveys, and the fact that 38 million Americans have already voted – around six times more than at this point six years ago. Moreover, pollsters may be overcompensating for some of their errors back then.
ECB President Lagarde is expressing worries about the virus' resurgence and hints at new measures in December. EUR/USD is under pressure. Earlier, US GDP beat estimates with a bounce of 33.1% annualized. Live.
GBP/USD has dropped below 1.30, reversing its Brexit-related gains. Growing concerns about coronavirus in the UK and the US elections are weighing on the pound.
Resurgent USD demand prompted some fresh selling around gold on Thursday. The USD stood tall following the release of upbeat US third-quarter GDP report. The US economy expanded by 33.1% annualized pace as against 31% expected.
At the beginning of the week, we warned of a possible volatility spike and turbulence in financial markets with only a couple of days remaining to the US presidential election. However, Wednesday turned out to be an ugly one for investors and much worse than expected.
FXS Real-time Trading Signals!
XAU/USD has been extending its decline, trading at around $1,865 at the time of writing. Markets are becoming more concerned about the rapid spread of COVID-19 in Europe and growing in the US. While that could eventually lead to a larger fiscal stimulus from the US government, Congress has adjourned without taking any decisions.
The elections are also causing a high level of uncertainty and it could move gold in all directions.
In the meantime, how are technicals looking for XAU/USD?
The Technical Confluences Indicator is showing that gold only has weak support at $1,861, which is the meeting point of the Pivot Point one-day Support 1 and the Bollinger Band 15min-Lower.
The cryptocurrency market is mixed red and green as the week grinds to a halt. Bitcoin and Ethereum are among the few assets that have accrued minor gains over the last 24 hours. A minor change can be observed in the total capitalization for the crypto market.
UniSwap bounces off support at $2.5 as bulls work around the clock to regain control. UNI/USD must break the descending channel middle layer resistance for gains above $3.
The craze surrounding DeFi has relatively settled down since the September crash. IntoTheBlock noted on Twitter that the ratio of DeFi tokens’ market cap to Ethereum went from being around 25% in late August to just over 15%.
SPECIAL WEEKLY FORECAST
The EUR/USD pair finishes the week with gains around 1.1830, at the upper end of its latest range but still unable to define a trend. For the past four months, the pair struggled for direction amid uncertainty about economic growth within the pandemic context, and the upcoming US presidential election.
Dual Brexit and US fiscal stimulus talks continued to dominate cable's trading, resulting in choppy trading, an eventual breakout to the upside, and a retreat afterward.
The once and future US stimulus package is the market intervention of the month. As the Republicans and Democrats try to wring as much electoral advantage from negotiations, statements of hope for a deal from Democratic House Speaker Nancy Pelosi and President Donald Trump on Wednesday, sent the USD/JPY cascading to a four-week low.
The AUD/USD pair started the week on the back foot, ending it with modest gains around 0.7110. The Australian dollar got hit by the Reserve Bank of Australia Minutes, as the document paved the way for a cash rate cut to a fresh record low of 0.1%.
While investors are waiting for BTC to retest all-time highs and shoot to the moon, it is already there. In some countries, the pioneer digital asset surpassed the peak of 2017 and hit new historic highs in local currencies.
"Putting pen to paper" – such commentary from Washington about a fiscal stimulus deal has been pushing gold prices higher, while pessimism about a deal held it back. With time running out toward Election Day, the next bout of cash to fuel gold prices mostly depends on the outcome.
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