By Lukman Otunuga, Research Analyst, ForexTime
US stocks have kicked off Tuesday in a mixed fashion as markets have welcomed the improvement in President Trump’s health, but this in truth may now just be a short-term market blip with the longer-term pandemic and election issues still ever-present.
Negotiations about further fiscal stimulus measures are set to continue, though investors are increasingly nervous whether a package can be approved before election day. That said, we should remember that regardless of who wins this historic and unique vote, monetary policy is going to remain easy and fiscal is going to remain supportive.
The Dollar is now little changed on the day reflecting a small fade in risk assets. It seems the Presidential election mood has slightly shifted this week towards a clear Biden victory with some recent polls showing the Democratic challenger extending his lead to 14 points nationally. A clean sweep victory without having to win any toss-up states would unfreeze Congress and potentially see big spending plans. As the chances of a contested election fade, bond yields are rising with the US 30-year Treasury surging higher and above its 200-day Moving Average for the first time since March 2019.
Further RBA easing to come
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The RBA left policy settings unchanged earlier today as expected but changed its statement ever so slightly to hint at further easing, potentially as soon as its next meeting in November. The bank expressed strong concerns about high unemployment and will continue to consider how further monetary policy easing could support the labour market as the economy opens up.
The Aussie is the worst performing major today with AUD/USD struggling to break above the 55-day MA. The pair traded in its narrowest range for some seven days yesterday which can mean we are on the verge of a breakout in the next few sessions. A solid close above 0.7210 should see more upside while a move below Friday’s low at 0.7130 is needed to push the pair south.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com
- Today, investors’ focus is on the PCE Price Index inflation report Apr 26, 2024
- Gold price recovers amid uncertain US economic outlook Apr 26, 2024
- This “Bullish Buzz” Reaches Highest Level in 53 Years Apr 26, 2024
- FastSpring and EBANX Forge Partnership to Expand Pix Payments for Digital Products in Brazil Apr 25, 2024
- Target Thursdays: NAS100, Robusta Coffee, USDCHF Apr 25, 2024
- QCOM wants to create competition in the AI chip market. Hong Kong index hits five-month high Apr 25, 2024
- Japanese yen hits all-time low as BoJ meeting commences Apr 25, 2024
- TSLA shares rose on a weak report. Inflationary pressures are easing in Australia Apr 24, 2024
- USDJPY: On intervention watch Apr 24, 2024
- Euro gains against the dollar amid mixed economic signals Apr 24, 2024