Currency Majors Are Consolidating. Investors Expect Additional Drivers

The greenback shows ambiguous results against its main competitors. The dollar index (#DX) is consolidating in the range of 92.70-93.10. Financial market participants are focused on the final stage of the election race between Donald Trump and Joe Biden, as well as on the current information on the new stimulus package in the US. The growth in the number of COVID-19 cases in the United States and Europe has caused a sharp decline in the demand for commodities. At the moment, the number of infected in the world has exceeded 42.9 million.

This week we expect a number of important events that may significantly impact on the financial markets. Meetings of the Bank of Canada, the Bank of Japan and the ECB will be held. It is expected that regulators will keep the key marks of monetary policy at the same level. Traders also expect the start of the Wall Street reporting season. About 170 companies should report to their investors.

The "black gold" prices have been declining. At the moment, futures for the WTI crude oil are testing the $38.85 mark per barrel.

Market indicators

On Friday, there was a variety of trends in the US stock market: #SPY (+0.34%), #DIA (-0.11%), #QQQ (+0.20%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 0.81-0.82%.

The news feed for 2020.10.26:
  • - German IFO business climate index at 11:00 (GMT+2:00);
  • - New home sales in the US at 16:00 (GMT+2:00).

by Justforex, 2020.10.26

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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