GBP/USD has come out on top amid long US elections process and BOE stimulus. Further ricochets from American politics and the UK GDP stand out. Early November’s daily chart is painting a bullish picture. The FX Poll is pointing to further gains for cable. A week for the history books – GBP/USD bulls are emerging on … “GBP/USD: Taking profits in fear of Trump? Not so fast, many moving parts eyed”
Category: Opinions
2020 Elections: Where the race stands in four critical states, traders on the edge of their seats
Biden holds onto leads in Arizona and Nevada. Trump’s advantage is narrowing in Pennsylvania and Georgia. The president has made unsubstantiated claims about fraud. Markets see a delayed outcome rather than a contested one. The US Presidential Elections have yet to be decided – but there are greater chances that the outcome is only a … “2020 Elections: Where the race stands in four critical states, traders on the edge of their seats”
Powell adds fuel to the market fire by defending QE, rally set to extend
The Federal Reserve has left rates unchanged and has said the recovery’s pace has moderated. Chairman Powell has defended the QE policy, saying the Fed discussed it. Markets are already on the rise on hopes for a decisive election. How can the Federal Reserve compete with the dramatic US elections? It probably cannot steal the … “Powell adds fuel to the market fire by defending QE, rally set to extend”
BOE gives pound bulls three gifts, what to watch for next
The BOE expanded QE by more than expected, allowing for a quicker recovery. Its open commitment to additional bond-buying is also positive. Refraining from setting negative rates leaves this option further in the distance. Printing money used to devalue the underlying currency – until the pandemic came around. Creating money out of thin air has … “BOE gives pound bulls three gifts, what to watch for next”
Fed Preview: Powell set to see glass half full, unless he has depressing NFP data
The Federal Reserve is set to leave its policy unchanged in its post-election decision. Upbeat economic data may outweigh concerns about coronavirus. A plea from newly elected lawmakers to act could be seen as a sign of helplessness. There is life after the elections – and the Federal Reserve’s decision may mark a return to the basics … “Fed Preview: Powell set to see glass half full, unless he has depressing NFP data”
BOE Preview: Lockdown raises chances of negative rates, streling could suffer
The BOE is set to leave its rates unchanged on “Super Thursday” England’s lockdown could push the bank to set negative rates, weighing on sterling. Opting for more QE would boost sterling. “I am asking you to stay at home” – UK Prime Minister Boris Johnson’s second lockdown announcement is already weighing on sterling. Will … “BOE Preview: Lockdown raises chances of negative rates, streling could suffer”
2020 Elections: Three states traders should watch, plus places that could provide surprises
Florida, the perennial swing state, counts votes early and will likely trigger the initial response. North Carolina’s Senate race is critical for a large stimulus package. A contested count in Pennsylvania could trigger the nightmare scenario for investors. Staes from Arizona to New Hampshire could also come into play. Keep America Great or Build Back … “2020 Elections: Three states traders should watch, plus places that could provide surprises”
GBP/USD: Trump or Biden? Brexit, central banks, covid all promise explosive week
GBP/USD succumbed to coronavirus concerns and elections uncertainty. The US elections, coronavirus, and two rate decisions promise an explosive week. Early November’s daily chart is showing bears are gaining ground. The FX Poll is pointing to short and long term gains. Coronavirus fears are gripping markets, triggering high volatility – and it will get far … “GBP/USD: Trump or Biden? Brexit, central banks, covid all promise explosive week”
ECB: Gloomy Lagarde lays ground for stimulus, next euro moves depend on covid
ECB President Lagarde has laid down a gloomy picture of the economy under the second covid wave. She committed to providing additional stimulus measures in the December meeting. EUR/USD is set to remain under pressure and focused on coronavirus statistics. “We are not going to stand still” – the words of Christine Lagarde, President of … “ECB: Gloomy Lagarde lays ground for stimulus, next euro moves depend on covid”
US GDP Analysis: No V-shaped recovery despite 33.1% leap, covid looms over markets
The US economy leaped by an annualized rate of 33.1% in the third quarter of 2020. The output is roughly 3% below pre-pandemic levels. Investors are worried about the impact of coronavirus in the fourth quarter. The best quarter in history – following the worst one. Gross Domestic Product jumped by an annualized rate of … “US GDP Analysis: No V-shaped recovery despite 33.1% leap, covid looms over markets”