The closer the US elections are, the more different forecasts analysts make. Soon there will be another round of negotiations on financial aid to the American economy.
This is the last opportunity for the senate to accept the aid package. Next time it will only be possible to do so after the presidential election. Both presidential candidates do not want to approach the election as someone who, in the absence of an agreement, has deprived many Americans of their jobs.
In any case, any package of measures taken should have a positive impact on the markets. Investors now believe that support measures will still be taken, only if the Democrats win will these measures be much broader.
On Tuesday, the S&P 500 index played back a serious decline on Monday and rose 0.9% to 3455.
In Europe, the second wave of COVID-19 is increasingly making investors think about the future. Many analysts predict that the European market will never leave the neutral range before the end of the year. A large package of risks, ranging from COVID-19 to the US elections and Brexit, keeps investors from deciding which way to go. On Tuesday, the DAX traded 0.9% lower, at 12730.
The EUR/USD pair continues to trade in neutral directions. It is likely that due to the ever increasing number of different risks, the trading range may widen and the volatility may increase. On the one hand, the euro is under pressure from the growing number of COVID-19 diseases in Europe, while on the other hand, the dollar is under strong pressure from the upcoming US presidential election and the issue of a US business support package is still unresolved. On Tuesday, the EUR/USD rose by almost 0.6% and came close to resistance at 1.19.
Gold has frozen in wait and with each trading session the price range decreases. This is all because of the upcoming events, but most investors already have almost no doubt that the precious metal will grow after the US presidential election. Gold is now firmly above its key level of $1900 per ounce and showing positive growth. We also know that both presidential candidates are promising an incentive package that will force the US Federal Reserve to print dollars again which will be cheaper. In this situation, gold will win again.
What awaits us today?
08.00 UK consumer price index first year
9.30 Statement by ECB Chairman C. Lagarde
16.00 US crude oil reserves
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