This is what you need to know to trade today Tuesday, November 3:
Markets are relatively quiet as US Election Day rolls into Europe. Trump remains behind Biden in the polls, but the battle is raging in the swing states. The dollar is stable, gold and oil have risen little by little and Bitcoin is on the defensive. Coronavirus cases continue to rise in the Northern Hemisphere.
American elections: Final polls leading up to the US presidential election point to former Vice President Joe Biden having a broad lead against President Donald Trump in national polls, but narrower in critical states. Almost 100 million Americans have already voted, about 72% of the total vote count for 2016.
Southern states like Florida, Georgia and North Carolina are ready to publish results quickly, and there the former vice president has a marginal advantage. Has a major advantage in Pennsylvania, considered the tipping point state, but the count can be especially slow there.
See 2020 U.S. Elections: Three States Investors Should Watch Out For, Plus Other Places That Could Show Surprises
Markets prefer a decisive outcome, preferably Biden winning the White House and the Democrats going around the Senate, a result that would allow for fiscal stimulus. The second best option is a Trump victory. On the other hand, a Biden presidency and a Senate controlled by the Republican Party could result in a small aid package. The nightmare scenario is a protracted electoral process that results in a contested election and a constitutional crisis.
The markets prefer a decisive result, preferably Biden winning the White House and the Democrats turning around the Senate, a result that would allow fiscal stimulus. The second best option is a Trump victory. On the other hand, a Biden WH and a Republican-controlled Senate could result in a small aid package. The nightmare scenario is a protracted electoral process that results in a contested election and a constitutional crisis.
2020 US Elections: Stock Markets in Three Scenarios
Gold Price Analysis: XAU / USD Has Three Paths in Response to 2020 Presidential Election
The coronavirus cases they continue to rise in the Northern Hemisphere and governments are awaiting recent measures to flatten the curve. EUR / USD remains under pressure below 1.17.
British Prime Minister Boris Johnson, faces a bitter battle to approve his new confinement, which goes into effect on Thursday. GBP / USD has stabilized around 1.29.
The AUD/USD it is trading above 0.70, relatively stable after the Reserve Bank of Australia cut interest rates to 0.1% as expected and announced that it would expand its bond purchase scheme. RBA Governor Phillip Lowe and his colleagues said their actions would contribute to a lower exchange rate.
New Zealand publishes its labor figures for the third quarter, which should show a drop in employment and an increase in the unemployment rate.
The oil prices They have rebounded from lows as Hurricane Zeta brought down production in the Gulf of Mexico. Furthermore, the OPEC + countries seem interested in raising prices.
US factory orders will show an increase in September. ISM’s Manufacturing Purchasing Managers Index beat estimates with 59.3 points, raising expectations for Non-Farm Payrolls on Friday.
The Bitcoin is on the defensive after Hong Kong regulators demand that all cryptocurrency platforms be regulated. BTC / USD is changing hands around $ 13,400.
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Credits: Forex Street
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