Forex Today: Markets cheer fresh push for US fiscal stimulus, coronavirus increase eyed
- 9th October 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Friday, October 9:
Markets are in a risk-on mood following the White House’s fresh push to advance fiscal stimulus talks. Concerns about eurozone cases limit the euro while weak UK GDP is holding sterling back. Canada’s jobs report and speculation about the US elections are in focus.
President Donald Trump seems to have changed his mind on talks with Democrats, and he is pushing for a large stimulus deal. The news from the White House is boosting stocks, boosting gold, and keeping the pressure on the US dollar. Earlier this week, he cut off talks, triggering a sell-off. Chinese markets are back after nearly a week off and their catch-up rise is boosting stocks.
On the other hand, Senate Republicans may be reluctant to go with the president. Leader Mitch McConnell criticized the White House’s coronavirus protocols following Trump’s disease and a growing list of infections. The rare gap within the GOP and hawkish preferences of some members cast doubts that a multi-trillion deal can be reached.
Trump continues trailing rival Joe Biden by a substantial margin in national and state polls. The impact of the Vice-Presidential debate held on Wednesday will likely be reflected in next week’s surveys.
Eurozone coronavirus cases continue rising and are weighing on the euro. France is set to expand its maximum alert level to several additional cities and Spain is contemplating another state of emergency. A court in Madrid annulled the government’s decision to slap restrictions on the capital. Germany also reports high levels of infections.
UK: Gross Domestic Product rose by only 2.1% in August, weaker than expected and pointing to a slowdown. The country is on high alert following a leap in coronavirus cases. The government is considering slapping restrictions in the northwest. Brexit negotiations remain stuck ahead of next week’s EU Summit.
Canada releases its jobs report for September, and similar to the US, it is set to report a slower pace of growth than the 245800 reported last in August. The Unemployment Rate is set to fall below 10%.
Oil prices remain stable with WTI holding above $40.
Cryptocurrencies are consolidating their gains, with Bitcoin trading around $10,800 and Ethereum just below $350.