The Demand for Risky Assets Has Weakened. The Bank of Canada Meeting Is in the Spotlight

The greenback has been growing against its main competitors. The dollar index (#DX) has updated two-week highs. The demand for risky assets has weakened due to the upcoming US presidential election and the rapid spread of the coronavirus pandemic. At the moment, the number of people infected in the world has approached the level of 44.0 million. Further weakening of risky assets is possible.

In the third quarter, Australia's CPI accelerated to 1.6% (QoQ), which is above market expectations of 1.5%. Financial market participants have taken a wait-and-see attitude before today's Bank of Canada meeting. Experts agree that the Central Bank will keep the key marks of monetary policy at the same level.

The "black gold" prices show a negative trend. At the moment, futures for the WTI crude oil are testing the $38.00 mark per barrel. At 17:30 (GMT+2:00), EIA crude oil inventories will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.34%), #DIA (-0.84%), #QQQ (+0.78%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 0.75-0.76%.

The news feed for 2020.10.28:
  • At 16:00 (GMT+2:00), the Bank of Canada will announce its decision on the key interest rate.

by Justforex, 2020.10.28

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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