Is the US dollar expecting to fall?

By 06/11/2020News
Morning Stock News

Gold  1939,975
(-0,48%)

EURUSD   1,182
(-0,01%)

DJIA  28187
(-0,58%)

OIL.WTI  37,79
(-1,87%)

DAX   12526,59
(+0,01%)

At the trading on Thursday, investors finally showed activity. It turned out that the unrest in the USA, which everyone was so afraid of, had not yet taken place. It is likely that Biden will win. This means that you can buy any asset and, above all, any risky one. Against this background, the US dollar has fallen sharply against all major currencies.

Gold

Gold

The positive developments in the markets indicate that no more delays are expected in the adoption of the new USD 2 trillion stimulus programme in the USA. Of course, the money will not go into real production. Who will be involved in its expansion when we face a total world lockdown? On the other hand, a lot of money will go to the stock and commodity market.
According to a comment on the Fed’s interest rate decision, we see a strong concern about the COVID-19 pandemic. This is an additional factor that suggests that the interest rates will not be increased for a very long time. As long as the labour market does not fully recover.


Gold

As always, gold will be one of the main beneficiaries. On Thursday, yellow metal grew by almost $50. If the price of $2,000 per troy ounce is taken over the next few days, we expect new historic highs by the end of the year.


Oil

But the positive side of the oil market is completely unclear. Yesterday we talked about the risks to black gold associated with Biden’s victory. However, that is not all. The fact is that the new American administration may again start negotiations with Iran on a nuclear programme, which is a priori impossible under Trump. If the embargo is lifted, about 2 million more barrels of oil per day will enter the market. This is another reason why the long-term run of oil should be kept extremely careful.


What awaits us today?

01.30 Comment from the Reserve Bank of Australia on Monetary Policy
08.00 Industrial production in Germany for September
14.30 Number of new jobs in non-US agricultural sector for October
14.30 Unemployment rate in Canada for October


Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.