Forex Today: Markets licking their wounds from covid-related rout, US data eyed


Here is what you need to know on Tuesday, October 27: 

Markets are recovering and the dollar is edging lower after covid concerns and realization that US fiscal stimulus is not coming hit markets. Speculation about the elections, two significant US releases, and additional coronavirus statistics are eyed. 

The dollar is attempting a recovery and S&P 500 futures are advancing after the index fell by 1.86% on Monday. The rout was triggered by growing concerns about increasing coronavirus cases in Europe and the US. Restrictions imposed across the old continent have yet to result in meaningful drops in infection rates.

German Chancellor Angela Merkel told the nation that difficult months are coming and is reportedly considering a light form of lockdown. The German IFO Business Climate declined in October despite the country's relatively moderate hit from the second wave. France, Spain, Belgium, and the Netherlands are struggling. Tensions are rising ahead of Thursday's European Central Bank decision.

US COVID-19 cases came out lower than in previous days in Monday's report, typical to weekend figures. Several states are reporting strains on hospitals. 

The US Congress is now adjourned until after the elections, seemingly slamming the door shut on the chances for an accord of fiscal stimulus and weighing on markets. Senators approved Amy Coney Barrett to the Supreme Court, in a move strengthening the conservative majority in the nation's highest court, and ahead of what could turn into a contested election.

President Donald Trump continues trailing rival Joe Biden in national and state polls, with no significant bounce from the debate. FiveThirtyEight is pointing to an 87% chance for the Democrat, and The Economist is pointing to 95% as post-presidential polls emerge.

See: US Elections: Debates matter but how much?

The race to control the Senate is closer and remains critical to passing a significant stimulus package. Investors prefer a Democratic sweep due to stimulus and despite the potential for business-unfriendly politics. 

The economic calendar features two significant releases. First, Durable Goods Orders for September are forecast to show a moderate increase in investment. The data feeds into third-quarter Gross Domestic Product statistics published later in the week. See: 

US Durable Goods Orders Preview: Will the part reflect the retail whole?

Later, the Conference Board's Consumer Confidence report for October is projected to show a moderate increase, signaling stability in consumption. Concerns about the elections could also surface. 

WTI Oil remains under the $40 level but has clawed its way back up. 

Gold is also moving back up, topping the $1,900 level but largely staying in familiar ranges. 

Bitcoin has extended its stabilization phase, holding above $13,000, while Ethereum slipped below $400. 

See 2020 Elections: Seven reasons why this is not 2016, time to focus on the Senate

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD hovers below two-month highs at 0.7375

AUD/USD keeps its range below two-month highs of 0.7375 amid a big miss on the Australian Q3 Capex data. The bulls retain control as the US dollar remains on the back foot across the board, in the face of renewed US economic growth concerns. 

AUD/USD News

USD/JPY revisits Wednesday's low as weak US data keeps dollar under pressure

USD/JPY drops over 20 pips in Asia to test Wednesday's low. USD/JPY is feeling the pull of gravity with the dollar drawing offers, possibly on disappointing US data released Wednesday. Disappointing US jobs data and dovish Fed minutes weigh over the dollar.

USD/JPY News

Gold hovers within the range of Wednesday's Doji candle

Gold's daily chart shows signs of indecision in the market. Wed's high and low are levels to beat for bulls and bears, respectively. A Doji candle represents indecision in the market and makes the following day's close pivotal.

Gold news

Markets return to normal, and traders may be loving it

Calendar comeback – currencies begin moving to the tune of economic indicators, a welcome return for traders. Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss the latest market moves and what to expect in the final stretch of 2020 and beyond.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures