US President Donald Trump interrupted the talks on the new stimulus package to prop up the economic recovery. So, the US dollar is erasing its gains. Futures on the US stock indexes are trading notably higher ahead of the publication of the Fed’s minutes. The Canadian dollar slipped in light of the weak trade balance. Bitcoin is losing ground.
US President Donald Trump ordered Treasury Secretary Steve Mnuchin to stop negotiating with House Speaker Nancy Pelosi, saying the talks will not resume until after the election. This dampened sentiment both on Forex and in the stock market. In other words, unemployed Americans and ailing businesses can rely on financial aid from the government not until December.
In this context, futures on the US benchmark stock indexes are making a correctional climb. They are rapidly regaining footing after a slump yesterday. The bulls pin hopes for the minutes of the Fed’s latest policy meeting which are due later today.
Futures on the Dow Jones rose 0.82%. The Nasdaq grew 0.88%. The S&P 500 is 0.83% up.
Judging by the dynamics of the stock indexes, the US trading floors could open with gains tonight. The minutes of the September policy meeting will clear up the Fed’s outlook for the economic recovery under the pandemic conditions. Nevertheless, the cautious optimism could be short-lived because all driving forces which caused a slump of the US stocks yesterday are still setting the tone.
Experts warn about a roller coaster across financial markets if lawmakers fail to agree on economic stimulus after the presidential election.
So, following Donald Trump’s intrusion in the talks on the financial aid, the US dollar lost its strength gained earlier in the European trade.
Its index showed a 0.1% uptick to the level of 93.737. The dollar/yen pair edged up 0.1% to trade at 105.78.
Late on Tuesday, Trump tweeted that Congress should quickly extend $25 billion in new payroll assistance to US passenger airlines amid massive lay-offs of airline employees. His appeal improved market sentiment in the Asian trade as investors hoped that the President could have revised his stance.
The Canadian dollar weakened today due to a downbeat trade balance report. The USD/CAD pair is trading at near 1.32. Today traders await a report by IVEY on Canada’s business activity to decide on the loonie’s further trajectory.
On Wednesday morning, Bitcoin sank almost 1.3% on the back of pessimism in the American session. Analysts do not rule out a further decline.
According to CoinMarketCap which estimates an average bitcoin price based on data from over 20 crypto exchanges, bitcoin lost 1.33% to trade at 10,609 dollars per token. The number one cryptocurrency shed 1.29% to trade at that level on Binance, the largest crypto trading floor in terms of a trade volume.
Bitcoin accounts for 58.6% of the global crypto market.
On Tuesday, Fed Chairman Jerome Powell warned about bleak prospects for the domestic economy in case the pandemic is out of control. To reduce infection rates and ensure the exit from the crisis, the Fed’s leader calls on Congress to provide extra financial aid. The minutes of the Fed’s latest policy meeting are on investors’ radars later today. Besides, several Fed officials are due to speak. If the government passes the bill much later than expected, investors will boost hopes for general fiscal measures from the central
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