FOREX TRADING STRATEGY NOV 5 - WAITING FOR RESULTS

Nov 05, 2020
Tags
Categories

USD price on April 4 continues to decline as America waits for the results of the presidential election.

On the world market, the USD-Index at the beginning of the day dropped to 93.5 points, falling below the 94-point threshold reached in October. According to Reuters, the forex market is moving in the direction of determining a winner for the US Democratic Party nominee Joe Biden defies warnings that post-election disputes could cause weeks of volatility to the USD rate.

forex news Nov 5

A majority of analysts believe Mr. Biden's victory will weaken the greenback as the former vice president is expected to spend a lot on stimulating and implementing a more liberal approach to trade, boosting other currencies appreciated against the USD.

In that context, the stock market in many countries increased strongly. US stocks jumped on the country's election day. Closing the session on 3.11, the Dow Jones increased to 554.98 points, or 2.06%, to 27,480.03 points; The S&P 500 plus 1.78% to 3,369.02 points and the Nasdaq Composite Index rose 1.85% to 11,160.57. Industry and finance stocks both increased strongly by more than 2%; or Walgreens Boots Alliance shares jumped 4% to lead the Dow Jones' rally. Similarly, shares of JPMorgan Chase and Goldman Sachs also contributed to the rise of the Dow Jones, soaring 3.4% and 4.1% ...

Similarly, European stock markets rallied while euro zone government yields rose and oil prices extended their upward momentum.

A crazy market

Asian stocks are likely to rise after US equities and bonds rallied, as investors appear to be confident that disputed election results will warrant major market factors. prices are still intact. The S&P 500 rose more than 2% and the Nasdaq 100 rose more than 4% in its best run since April. Futures markets rose in Japan and Hong Kong, and CNH gained. Democrats failed to wipe out Congress and the White House, leaving traders to bet on a massive financial stimulus package. The dollar weakened against many major peers, while gold depreciated.

RBA and FED

The Reserve Bank of Australia's bond buying trend is approaching the Fed, compared to the size of the economy. A plan to buy $ 100 billion ($ 71.2 billion) of bonds within 6 months will begin with a purchase of A $ 2 billion worth of government debt with a 7 to 10 year term at the auction. prices on Thursday. Bill Evans, chief economist at Westpac, calculates RBA's assets will increase to about 550 billion Australian dollars, or 27.5% of gross domestic product. The Fed's balance sheet is about 34% of GDP, and most economists do not expect the Fed to speed up its asset purchases anytime soon.