The US dollar fell across the board on Wednesday as the reality of the forthcoming election begins to filter into financial markets. Equities fell and the price of gold rose as investors expressed a more cautious approach to the huge political event which lies ahead.
The November US election will be the most anticipated and closely contested of recent times. Given the enhanced importance of the election due to the pandemic, mixed with the stark contrast between both characters, and it’s clear to see why the run-up to the 4th November could become even more volatile. Yesterday’s sell-off in the US dollar and global equities was orderly but as we get closer to the event, caution across markets may become more pronounced.
The pound rose yesterday after taking an early morning tumble as the UK government confirmed mid-morning that they would not walk away from talks if an agreement is not made this week. GBPUSD jumped back above $1.30 while the GBPEUR pair raced towards €1.11. If this positive tone continues then the pound may be somewhat more cushioned moving forward.
Today’s main event will be the commencement of the latest EU Summit. It’s highly likely we’ll have numerous Brexit related headlines flash across the news wires.
8:29am, October 15th 2020
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