The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Presidential election is in focus
US Election - the most expected event approaches. What will happen?
Instruments to trade: EUR/USD, USD/JPY, AUD/USD, XAU/USD
This is the moment that everybody has been waiting for – the presidential election on November 3. Put aside all your plans for this day as it will be one of the greatest events for the entire Forex market as it will impact all financial assets from commodities to currencies. The results will define all the major market drivers: the amount of fiscal stimulus, further US-China relationship, and the seize of taxes. Also, it’s significant for markets to know whether the US government will be unified or divided. So, there are 5 possible scenarios that may happen:
- a clear victory of Biden – the USD will fall, stocks will rise on larger stimulus, gold, the CNH, and the AUD will rise on hopes for better US-China relations;
- a clear victory of Trump – the USD will surge, and stocks will rise on tax cuts;
- Biden wins, but the Senate is held by Republicans – both the USD and stocks may slightly plummet;
- Trump wins, but the Senate is held by Democrats – the USD will get support, the AUD will get under pressure, and stocks may slightly rise.
- The result is contested – stocks will dramatically fall.
Nevertheless, we may not get the results on this day as the coronavirus restrictions made the election process harder. Anyway, the market will be volatile! Catch the market flow!
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.