Markets Jittery ahead of US Election and Coronavirus Concerns
Pound News: Sterling Sees Limited Impact from Second Lockdown Announcement
The Pound weakened today as markets reacted to weekend news that Britain was headed for another coronavirus lockdown. However, Brexit optimism is keeping the Pound from falling too much.
Sterling also found support in today’s better-than-expected UK manufacturing PMI which was expected to slip to 53.3, but only slipped to 53.7, remaining in growth territory.
Tomorrow’s economic calendar is quieter, which will leave investors more focused on global developments like the coronavirus and the US presidential election.
Euro News: Eurozone’s Coronavirus Second Wave Keeps the Pressure Up
The worsening coronavirus second wave across the Eurozone is keeping the Euro weak today, while strength in its rival the US Dollar, driven by safe-haven demand, is also weighing on the Euro.
Today’s Eurozone slightly better-than-expected manufacturing PMI data had limited impact on the Euro, with the Eurozone economy expected to worsen again in Q4.
The biggest focus for the Euro tomorrow will likely be the US 2020 presidential election, which could move the Euro through its negative correlation with the US Dollar.
US Dollar News: Safe-Haven Demand Strengthens USD
The US Dollar is ticking higher today as concerns about the global coronavirus second wave, as well as the upcoming US 2020 presidential election are boosting safe-haven demand.
The US coronavirus situation remains highly concerning, with infections surging, capping some of the US Dollar’s strength.
However, the biggest event on the global calendar this week is tomorrow’s US election. The results of the election may not be known for some time due to pandemic delays and the potential for a contested result, leaving the US Dollar well positioned to make gains this week.
Canadian Dollar News: Coronavirus Fears Push GBP/CAD Down
While the Canadian Dollar is a trade-correlated currency, the Pound’s coronavirus jitters weighed on the Pound to Canadian Dollar exchange rate.
The Canadian Dollar’s appeal has been limited in recent sessions due to prices of oil slumping on fresh coronavirus lockdowns around the world, which is weighing on CAD.
No notable Canadian data will be published tomorrow. Instead, coronavirus and US election developments will influence market risk-sentiment and the Canadian Dollar.
Australian Dollar News: Risk-Aversion Limiting ‘Aussie’ Appeal
The Australian Dollar is struggling to hold its ground today as global coronavirus and US political concerns worsen, in turn weighing on the trade and risk correlated currency.
This morning’s Australian building permits data was stronger than expected, but ultimately had little impact on the Australian Dollar, amid heightened market uncertainty.
Tomorrow could be a more influential session for the ‘Aussie’, however. The Reserve Bank of Australia (RBA) is expected to introduce quantitative easing (QE), and the US 2020 Presidential Election will be held, driving volatility in the ‘Aussie’.
Tuesday, 3rd November
03:30 Reserve Bank of Australia Policy Decision
15:00 US Factory Orders
15:00 US IBD/TIPP Economic Optimism
US 2020 Presidential Election