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. US politics are set to take over in the pre-elections week, while UK coronavirus cases and lockdowns will probably become more prominent, Yohay Elam, an Analyst at FXStreet, reports.
Key quotes
“The Brexit saga has been going for over four years, and with two months left until the UK ceases to be a de-facto member of the EU, any headline could rock markets. The end of October was one of the deadlines for reaching a deal, but the data will likely come and go without a deal. Nevertheless, any comment on progress could boost sterling, and a total stall of negotiations would hurt it.
“The increase in COVID-19 cases and the ensuing lockdowns are moving rapidly. If Liverpool's Tier Three restrictions succeed in flattening the curve, it could serve as an encouraging sign, boosting the pound. On the other hand, if additional regions enter the highest lockdown level, especially London – sterling could suffer.”
“An influx of post-debate opinion polls is likely early in the week. While national surveys grab the headlines, what counts is battleground states. Polls from Pennsylvania – the closest of the northern states that Trump won narrowly in 2016 are of high importance. Florida, the perennial swing state, is also critical as it sends a large number of electors, is highly contested, and counts early votes ahead of election day. If Biden wins Florida, the race is all but over. However, if Trump carries his new home state, the race is considerably closer.”
“COVID-19 cases are rising in colder states, with the battleground of Wisconsin standing out. Will the disease depress turnout and favor Trump? Will it shed more light on his mishandling of the crisis and push voters toward Biden? The increase is known; the impact remains a mystery.”
“Durable Goods Orders for September are set to print modest changes. Investors are eyeing Nondefense ex-air spending, considered ‘the core of the core.’ These investment figures feed into Gross Domestic Product calculations for the third quarter. After an annualized collapse of 31.4% in second-quarter GDP, a bounce of a similar magnitude is on the cards now. The first release tends to have more impact than revisions and is set to impact future stimulus calculations, allowing it to impact markets despite tensions ahead of the vote.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.