FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1730
BTC/USD
47 499.18
GBP/USD
1.3751
USD/JPY
109.9450
USD/CHF
0.9316
USD/CAD
1.2765
EUR/JPY
128.9676

Pendulum swings in favour of risk as Trump leaves hospital


6 October 2020

The sentiment pendulum swung deeper into “risk-on” territory on Tuesday morning after President Donald Trump’s departure from hospital soothed concerns about his health.

Equity bulls in Asia were instilled with a renewed sense of confidence on this news, elevating shares to levels not seen in more than two weeks. European stocks opened slightly higher with the positive mood potentially finding its way back into Wall Street this afternoon.

There seems to be a growing sense of optimism for more U.S fiscal stimulus after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday. Market sentiment could brighten if both sides reach a breakthrough on new government spending before the Presidential election less than a month away. Such an outcome may inject equity bulls with enough inspiration to retest 2020 highs. However, the road north remains filled with many obstacles in the form of rising coronavirus cases in the United States and across the globe and lingering fears around economic growth.

Dollar waits for Powell


After depreciating against most G10 currencies yesterday, the Dollar has entered Tuesday’s session struggling to shake away the Monday blues. In our technical outlook, we discussed the possibility of the Dollar Index trending lower if 94.00 proves to be reliable resistance. The Dollar Index is trading around 93.48 as of writing and could slip towards 92.70 if bears can conquer the 93.30 intraday support.

Fed Chair Jerome Powell will be under the spotlight today as he delivers a keynote speech at the National Association of Business Economics (NABE) conference. Any fresh clues on monetary policy could influenced the Dollar Index (DXY) performance this week.

Currency spotlight - GBPUSD


Pound bulls seem to be on a mission to conquer the 1.3000 resistance level. Looking at technicals, prices are trading above 100 & 200 Simple Moving Average while the MACD trades to the upside. A solid break above 1.3000 could open the doors towards 1.3100 and possibly higher. If 1.3000 proves to be reliable resistance, the GBPUSD may slip back towards 1.2820.

Commodity spotlight – Gold


Gold prices slightly dipped on Tuesday morning as equities roared to life following Trump’s discharge from hospital, though a softer Dollar limited the precious metal’s downside losses.

Overall, the outlook for Gold remains bright despite the risk-on mood sweeping across financial markets. Rising coronavirus cases across the world, political risk ahead of November’s US election, Brexit related uncertainty and low-to-negative US government bond yields are likely to stimulate appetite for the Gold in Q4. If the Dollar ends up weakening on rising inflationary pressure in the United States, this could prove a tailwind for Gold which is also considered an inflationary hedge.

Looking at the technical picture, the daily close above $1900 could open a path towards $1935. Should prices break back below $1900, Gold may sink towards $1865.

#source

Related

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.