Forex Today: Optimism about Trump's potential discharge lifts markets, stimulus news eyed

Here is what you need to know on Monday, October 5: 

Markets are rising and the safe-haven dollar is down on hopes that President Trump may leave the hospital shortly. Speculation about his condition, headlines related to fiscal stimulus talks, and the ISM Services PMI are set to rock markets.

President Donald Trump's doctors painted an upbeat picture on Sunday, saying the Commander-In-Chief is improving. Trump later released a video and did a short drive-by, waving to supporters outside the Walter Reed hospital.

However, the physicians also revealed that the president is receiving an aggressive treatment reserved for severe coronavirus cases, raising doubts about his health. Trump's doctor Sean Conley was forced to clarify some of the comments he made on Saturday regarding oxygen support. 

See Stocks to surge on Trump's discharge hopes, four reasons why a crash may follow

Fiscal stimulus: Trump spoke with Senate Majority Leader Mitch McConnell over the weekend over the fiscal stimulus deal. House Speaker Nancy Pelosi said on Friday that chances of a deal have risen. The latest reports suggest Republicans are willing to allocate around $1.5 trillion while Democrats want a relief package worth $2.2 trillion.

Before Trump's disease, markets moved more on the odds for stimulus than from politics. Trump's rival Joe Biden continues leading in national in state polls. 

Brexit: UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke over the weekend and agreed to extend talks on future relations. The pound is rising, yet remains hesitant due to the lack of details on a breakthrough. The EU took legal action against the UK last week.

The US economy gained 661,000 positions in September, worse than expected, and the Unemployment Rate fell to 7.9%, exceeding estimates. The last Non-Farm Payrolls statistics ahead of the elections were drowned by the news of Trump's illness. 

See US Non-farm Payrolls September Report:  The two-tier economy

The ISM Services Purchasing Managers' Index is set to show an ongoing recovery in America's largest sector. Markit's final Services PMI is also of interest. 

Coronavirus cases continue rising in Europe. Spain's capital Madrid is the hardest-hit area in the old continent and has gone into lockdown. The French capital Paris raised its alert level to the maximum and restrictions are also under consideration in Ireland. Eurozone services PMI and the Sentix Investor Confidence are eyed. 

Gold has retreated from the highs above $1,900 and trades just below that round number. Oil prices have failed to recover the losses incurred on Friday and remain sensitive to politics. 

Cryptocurrencies have been trading within a range, with Bitcoin changing hands above $10,600. 

More Who will be the next president? Markets seem to care more about Congress' actions (for now)

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