The Greenback couldn’t care less about political chaos in its own backyard – Market Overview – October 22

The Greenback couldn’t care less about political chaos in its own backyard – Market Overview – October 22

The US electoral process appears to be complicated

Candidate Biden announces that both he and his team are beginning to prepare for a bumpy transition. The news about external interference from countries such as Iran or Russia, the first against Trump and the second in favor of him, muddy the political process and anticipate the possibility of a contested electoral result by the current president in case he loses elections.

This is the main cause for today’s market return to risk-off mode. In fact, we have been observing these sudden changes from one day to the next within an indecisive market very typical of the pre-electoral period in which we find ourselves.

The fact that an agreement on the fiscal stimulus package has not been reached is also influencing this new negative market sentiment, if only circumstantially. We need to take into account that after the elections its implementation will be likely, but the possibility that the result be delayed because it is contested worries investors.
This would delay not only the entire political process but also the approval of the necessary fiscal stimulus package.

US equities

Stock markets experience slight setbacks today with the TECH100 index losing just over 0.15% in the early moments of the session.

In the currency market, the Dollar strengthens after yesterday's losses, a movement coming from a flow of refuge search.

EUR/USD, which broke up to the 1.1880 zone yesterday, falls back more than 50 pips from highs and is back at the top of the previous range zone at 1.1820.

Its future evolution will depend on how electoral events unfold. If the tension increases and the possibility of a contested election result is high, the Dollar will act as a safe haven and the EUR/USD pair could return again to the lower part of the previous range in the 1.17000 zone.

The economic figures are no longer relevant in this scenario and everything will depend on political events.

In this context of uncertainty, COPPER, whose price is directly related to economic growth, has slowed its upward climb and is backing more than 1% today, after having reached the highest levels in two years.

Support is found at the 100 and 200 hourly SMA zone at 3.1200 and 3.0900.

Note that the correlation between this metal and the North American indices is high.

Le informazioni contenute nel presente documento sono redatte da Miguel A. Rodriguez e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.

Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.

Key Way Investments Ltd non influenza né ha alcun input nella formulazione delle informazioni qui contenute. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.

Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le performance passate non sono un indicatore affidabile dei risultati futuri.