Gold 1872,15
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EURUSD 1,1669
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DJIA 26858,50
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OIL.WTI 40,53
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DAX 12624,94
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It is already clear that autumn will be difficult for the whole world. The situation with the coronavirus is worsening day by day. The vaccines have still not produced 100% results. Also in the USA, the election race is gaining momentum. Donald Trump makes sharp statements almost every day. The situation is getting hotter. More and more attention is shifting to the election debate.
GBP/USD
September is almost over. During this month we saw that the situation in the markets can change dramatically because of the slightest unrest. Investors keep a pulse on the news and are always willing to sell assets in order to keep their profits.
The US Federal Reserve is calling on Congress and the White House to increase government spending to support the economy in order to restore growth and try to reduce unemployment. Recent data have shown that the momentum in the labour market is slowing down.
Against this backdrop, the S&P 500 looks still good, although it has lost almost 10% of its last historic high.
The coronavirus is beginning to rage in Europe. England is introducing some measures on social restrictions. There is a daily increase in infections in Spain. France has announced new restrictive measures. All of this is leading to the economy falling back into the COVID-19 trap before it can recover.
Hopes for an improved macroeconomic situation are dashed day by day and this is forcing investors to sell their assets. The DAX index fell by 0.3% on Thursday to 12606.
Pound Sterling
The pound is still the only currency that tries to resist the US dollar. The pound is supported by a new labour market stimulation programme, announced by UK Treasury Secretary Rishi Sunak. This allowed the GBP/USD pair to rebound from 1.2700 (daily SMA200). In the current situation, the growth potential is constrained by the difficult negotiations on Brexit as well as the strong appreciation of the US dollar.
Gold
The drop in gold over four trading days was around 5%, which is not small. The main reason for this fall was the sharp strengthening of the US dollar. Given the current factors, the US dollar will soon be under pressure from US Federal Reserve decisions and macroeconomic statistics. It can be assumed that the growth of the dollar is a temporary effect, which occurred against the backdrop of investors moving away from risk assets into a simpler tool. This means that the price of the precious metal will soon be recovering lost positions. Already on Thursday, gold showed excellent growth and traded at $1880 per ounce.
What awaits us today?
13.00 Quarterly report of the Bank of England for the 3rd quarter
14.30 Base orders for durable goods in the USA for August
21.10 Speech by US Federal Reserve Member Mr. Williams
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