20 Oct

Pelosi Deadline Looms For Pandemic Bill

October 20, 2020

By Orbex

Clock Ticks Away for Pre-Election Stimulus

The US dollar index continued its slide from the beginning of the week, as it closed 0.35% lower yesterday.

Fiscal stimulus negotiations continue to largely drive the direction of the US dollar.

This comes as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin made some progress during their latest coronavirus stimulus talks.

They plan to speak again today about a relief bill, ahead of a two-day deadline that Pelosi set to reach an agreement.

Any breakdown in stimulus negotiations would likely send the US dollar higher into the November 2020 election.

Free Reports:

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.





Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter




Pandemic Counteraction Brings Deficit into the Red

The euro pounced on the greenback’s weakness on Monday as it closed 0.43% higher.

This comes despite recent reports that the eurozone’s budget deficit is expected to rise nearly tenfold.

A draft budget plan published by member states on the European Commission’s website indicates the 19-country bloc will slide to an aggregate fiscal deficit of almost €1 trillion.

ECB President Lagarde continues to call on continued fiscal and monetary support to avoid further losses of viable businesses.

Brexit Uncertainty Continues

The pound ended yesterday’s session 0.38% higher on the back of further uncertain Brexit negotiations.

After last week’s EU summit drawing no conclusion, Downing Street seemed to announce that talks have ended. However, reports have indicated that the EU has succumbed to some of the UK’s demands, leading to further confusion.

Britain was also hit hard by new restrictions as Wales became the next country to enforce a 2-week lockdown, starting from Friday.

Manchester was also placed on a ‘very high’ alert level recently. The mayor has been given a deadline of midday to reach a deal with the government over moving to tier three COVID restrictions.

Indices Hit By Stimulus Stalemate

The US stock market witnessed a sell-off on Monday due to fiscal stimulus talks shifting market sentiment.

The Dow and Nasdaq sank over 1%, with the latter recording a fifth straight daily decline.

The self-imposed 48-hour deadline by Nancy Pelosi weighed heavily on concerns over further aid.

Risk Sentiment Lifts the Pessimism Around Gold

Gold was able to bounce back slightly on Monday, closing 0.23% up.

The yellow metal is attempting to hold its composure above the $1900 handle, as the Presidential Elections move closer.

The recent dollar weakness has helped maintain the said level, as risk appetite will shift if we are to witness further US stimulus deadlocks.

WTI Fails to Hold $41

Oil closed on an indecisively on Monday, with OPEC warning of a precarious outlook for the market as a resurgent virus hits consumption.

Saudi Arabia’s Energy Minister called on the group to be proactive in the face of uncertain demand.

Oversupply concerns weighed heavily on a push past $41. Rising coronavirus cases and expanding Libyan supplies kept prices in check.

By Orbex


investmacro cot newsletter




Financial News