The next week of October is coming to an end. We can draw some conclusions about the situation on the markets. On the whole, everything looks optimistic. Donald Trump has almost recovered and has even managed to report on progress in negotiations on financial incentives.
In the run-up to the elections, macroeconomic data is improving. The number of initial applications for unemployment benefits is still high, but the overall unemployment rate in the USA is improving with each report.
The American market will continue to recover in the hope of accepting the aid package, given that the administration is still trying to reach an agreement.
The S&P500 index on Thursday marks a new monthly high and trades at 3440.
The DAX rises on Thursday, relying on stimulus measures in the USA. Investors are now so enthusiastic about what is happening in the states that they even ignore the rise in COVID-19 diseases in Europe. It is possible that the epidemic will have a delayed impact on the market as soon as it seriously affects economic performance.
As long as there is no strong movement with a GBP/USD pair. The pound is at the upper level of the range and seems to be preparing for a strong movement.
And that is not surprising, because something is bound to happen next week. October 15 is the deadline set by Boris Johnson for negotiations on Brexit. There are still quite a few unresolved issues ahead, but Johnson is ready to withdraw from the negotiations in an ultimatum. So far the situation is escalating and there are risks, both upward and downward. On Thursday the pair GBP/USD trades at 1.2930.
Thursday was a very good day for oil traders. Optimistic news from the USA supported the price of black gold, as the new aid package should stimulate the economy quite well. The price per barrel of WTI oil exceeded $41. All the attention is focused on the USA. Coronavirus is falling into the background, although another lockdown in the countries could significantly lower the demand for oil and the price accordingly.
What awaits us today?
08.00 UK GDP for September
08.00 UK manufacturing output for August
14.30 Change in employment in Canada for September
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