Spotlight – US Presidential Election and jitters is expect to hold volatility today
FX Update
The dollar slid below 103.80 on Monday as investors braced for a potential pivot this week for the global economy as the United States chooses a new leader, and as it likely cuts interest rates again with major implications for bond yields.
The euro extended an early climb to be up 0.5% at $1.0891 and looked set to test resistance around $1.0905. The dollar fell 0.6% on the yen to 152.60. The dollar index eased 0.1% to 103.80. Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls and the winner might not be known for days after voting ends. Analysts believe Trump’s policies on immigration, tax cuts and tariffs would put upward pressure on inflation, bond yields and the dollar, while Harris was seen as the continuity candidate.
Crude Oil:
Crude Oil prices gained nearly half percent on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election and a key meeting in China.
Gold:
Gold prices booked half percent fall yesterday as investor caution prevailed ahead of the U.S. presidential election and looming Federal Reserve decision on interest rates.
Copper:
Prices of base metals rose slightly on a softer U.S. dollar, but trading remained thin amid caution around the uncertainty of who will become the next U.S. President. Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.5% to $9,616.50 per metric ton.
Prices action (MCX)
Gold 78422 (-0.56%), Silver 94284 (-1.26%), Copper 852.70 (+0.58%) Crude Oil 6024 (+0.60%) Natural gas 233.70 (+3.18%)
Major Economic Data and Event scheduled today
· Final euro zone manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 46.0 in October, ahead of a 45.9 preliminary estimate but still below the 50 mark separating growth from contraction.
· India Manufacturing Purchasing Managers’ Index, complied by S&P Global, rose to 57.5 in October from an eight-month low of 56.5 in September and was above a preliminary estimate of 57.4.
· Italy Global Purchasing Managers’ Index (PMI) for manufacturing in the euro zone’s third-largest economy fell to 46.9 from September’s 48.3, sinking further below the 50 mark that separates growth from contraction..
Major Economic Data and Event in the spotlight today
Australia
At 9.00am-
Cash Rate. Data is foreseen at 4.65% from previous 4.65%.
RBA Monetary Policy Statement. RBA Rate Statement
At 10.00am- RBA Press Conference.
Above data could have a positive impact on the Yen.
China
At 7.00am
Caixin Services PMI. Data is foreseen at 50.5 from previous 50.3.
Above data could have a neutral impact on the Yuan.
Eurozone
At 1.15pm-
French Gov Budget Balance. Data is foreseen at -0.4% from previous -0.4%.
French Industrial Production m/m. Data is foreseen at -0.7% from previous 1.6%.
At 1.30pm- French Prelim CPI m/m. Data is foreseen at 0.2% from previous -1.2%.
All day – ECOFIN Meetings
Above data could have an mixed impact on the Euro.
UK
At 3.00pm Final Services PMI. Data is foreseen at 2.6% from previous 2.7%.
Tentative – Monetary Policy Report Hearings.
Above data could have a mixed impact on the Pound.
US
At 8.30pm-ISM Services PMI. Data is foreseen at 0.3% from previous 0.1%.
All day – Presidential Election.
All day – Congressional Elections
Above data could have a volatile impact on the dollar.
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Also Read: Dollar Weakens Ahead of U.S. Election and Fed Rate Cut , What to expect in Great British Pound apost UK budget?
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