Friday, October 23, 2020

Beware ‘Traders’ - Focus on These 2 Key Issues!

 The US dollar index strengthened higher on Thursday after expectations of the Covid-19 stimulus package ahead of the U.S. election on November 3 faded and cases of the Covid-19 pandemic spread around the world causing investors and traders to choose the safe haven and greenback currency.

Elsewhere investors are still scrutinizing U.S. unemployment claims data showing a larger-than-expected decline. However, the volume recorded is still at a very high level and this indicates constraining growth in the labor market and economic recovery.

Negotiations on a new pandemic aid bill were questioned after Republican President Donald Trump accused Democrats of being unwilling to compromise and of resisting new stimulus packages.

Analysts like Kathy Lien, the market is likely to be faced with bad news about the stimulus package from now until the election.

Elsewhere, Europe recorded the highest pandemic positive outbreak with Spain becoming the first Western European country to over 1 million cases of infection.

The US dollar index strengthened 0.31% against major currencies to 92..888. The euro continued to depreciate with a decline of 0.40% against the US dollar.