Trump's soon recovery improved market sentiment

Trump's soon recovery improved market sentiment

The market sentiment has improved due to the possibility of Trump’s soon recovery. Doctors reported that the US president’s health is improving. As a result, safe-haven assets dipped, while stocks and riskier currencies got a boost.

Fundamentals

  • As for the fiscal stimulus, US officials claimed that the deal is going to be reached soon, despite some disagreements over the sum. Republicans argue for 1.5 trillion dollars, while Democrats insist on 2.2 trillion.
  • On Friday, NFP came out and showed that only 661 000 people have found jobs in September, while 900 000 were expected. Average hourly earnings turned out worse than estimates as well. However, the market reaction was weaker than usual as it was partly offset by Trump’s announcement of being positively tested on Covid-19.
  • Speaking about coronavirus, new virus cases have considerably risen in Europe. Some countries have even imposed fresh lockdowns.
  • All attention to PMI reports from Europe and ISM Non-Manufacturing PMI today as they will be the main market drivers.

Technical tips

Let’s look at the charts. EUR/USD plummeted on Friday amid the risk-off mood, but today the pair has started recovering its losses due to the upbeat comments over Trump’s health. EUR/USD has been trading in a descending channel since the beginning of September. The intersection of the upper line of the channel and the high of September 21 at 1.1770 has created a strong barrier for the pair. However, if it manages to cross it, the way up to the 200-day moving average at 1.1800 will be open. On the flip side, the move below the 50-day moving average at 1.1690 will drive the price lower to the next support of 1.1615.

EURUSDH4.png

S&P 500 is fluctuating between 3 300 and 3 390. The escape of this range will define further movement. If it goes above the top of 3 390 at the 200-period moving average, it will rise to 3 420. Otherwise, if it drops below the key support of 3 330, it will plummet to the bottom of its range at 3 300. Remember that you can use pending orders not to wait for the breakouts, such as Buy Stop and Sell Stop.

S&P500H4.png

Gold has started the week on the back foot. The move below the 50-period moving average will drive the price lower to September’s dips of $1 850. In the opposite scenario, if it jumps above the key psychological mark of $1 900, the doors towards $1 920 will be open, but it’s unlikely to move further up as it is constrained by the two-months trendline.

XAUUSDH4.png

The British pound has gained on optimism over soon Brexit agreement as the EU and the UK are showing interest in negotiating further. The sooner they reach the deal – the better for the pound. The surge above the key resistance of 1.3000 will drive the price to a high of early August of 1.3150. On the flip side, the move below the 200-day moving average of 1.2720 will push the pair lower to the next support of 1.2550.

GBPUSDDaily.png

All eyes on PMI reports from Europe and ISM Non-Manufacturing PMI at 17:00 MT time.

Check the economic calendar

Similar

Inflation Risks Return To The Markets
Inflation Risks Return To The Markets

Lagarde says difficult times have come, and the ECB raised the rate not to cause a recession but to stabilize prices. Read the report to learn the freshest news of the day!

ECB Key Rate is in Focus
ECB Key Rate is in Focus

ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.

Latest news

Fed’s Rate Pause and UK Inflation Slows
Fed’s Rate Pause and UK Inflation Slows

Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera