September is ending and we are getting closer to the US elections every day. On Tuesday, the first debate of candidates will take place where they will reveal their positions and views on US foreign and domestic policy.
Investors are very cautious about this event and are reducing their market positions.
A package of fiscal assistance to the economy has still not been adopted, and ongoing negotiations are still far from an agreement. The mortality rate from COVID-19 has reached 1 million people. Problems have accumulated enough to put pressure on indices.
There is likely to be a time of increased volatility on the stock exchanges, because the future of the country will depend on the applications of presidential candidates and the elections themselves. The economic policies of Republicans and Democrats vary greatly from one another.
On Tuesday, the S&P500 index loses almost 1% and drops to the 3320 level. The DAX closed with a decline of 0.35% to 12825.
After all, the bears were able to hold their level at 1.17 and the EUR/USD pair started to grow. Serious injections of dollars into the US economy still put pressure on the rate. In the short term, the EUR/USD pair has a test level at 1.18, from which a small correction is possible. Much depends on the outcome of this week’s debate and macroeconomic statistics.
Gold is gaining momentum. In anticipation of possible fluctuations in the stock markets, investors have chosen to go into “asset shelters”. The dollar is also losing its position and giving gold a chance to grow even more. The price has come close to $1900 per ounce. There are a number of important macroeconomic data ahead, which will certainly have a short-term impact on the gold market. The main data will be on non-agricultural employment in the USA. Gold now has a good chance of reaching to $2,000 once again.
What awaits us today?
08.00 UK GDP since the beginning of the year
11.00 EU Consumer Price Index from the beginning of the year
14.30 US GDP since the beginning of the year
16.30 US crude oil reserves
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