Pound News: Pound Plunges as US Election Uncertainty Causes Panic
It became clear that the US presidential election would be far closer than markets expected overnight. This led to a huge rise in uncertainty and risk-off movement, which is leaving the Pound weaker today.
Sterling came under further pressure from Britain’s latest services PMI data, which fell notably short of forecasts at 51.4, closer to stagnation and potentially indicating the UK’s economic recovery is slowing.
Market demand for the Pound could improve again if the outcome of the US Election becomes clearer, while GBP investors are also anticipating tomorrow’s Bank of England (BoE) policy decision.
Euro News: Eurozone Coronavirus Fears Limiting Euro Appeal
The Euro is performing a slightly better today in spite of the Eurozone’s worsening coronavirus situation. Despite its negative correlation with a strong US Dollar, the Euro has been benefitting modestly from market safe-haven demand as well.
The Euro found some support from today’s Eurozone services and composite PMIs, which beat forecasts.
However, Eurozone restrictions and lockdowns mean that the bloc’s economy is still likely to worsen going forward. Meanwhile, Eurozone retail sales data released tomorrow will likely have limited impact as the focus continues to be the US presidential election.
US Dollar News: Safe-Haven USD Surges amid Tight Presidential Election
As the US 2020 Presidential Election is turning out far closer than expected, market demand for safe havens like the US Dollar surged overnight.
Investors will continue buying the US Dollar so long as the election is close or could have a contested outcome.
This will remain the biggest focus for the US Dollar and global markets as votes continue to be counted, while Investors will also be closely watching the Federal Reserve’s November policy decision tomorrow evening.
Canadian Dollar News: Oil Prices and US Election Hopes Keep CAD Buoyed
The Canadian Dollar is trending higher this week, although it dipped on a tight US presidential election last night, but hopes that the election will end with a clear result are helping it avoid losses today.
On top of this, prices of oil, Canada’s biggest export, remain steady after yesterday’s rebound, helping to keep the oil-correlated Canadian Dollar buoyed.
With Canada’s close relationship with the US, the focus will remain on the election result and ongoing uncertainty.
Australian Dollar News: Stronger-than-Expected Retail Sales Support ‘Aussie’
The Australian Dollar has also suffered from souring market sentiment due to US election uncertainty during today’s session.
However, the ‘Aussie’ has been stronger than other risk-correlated currencies this week due to Australia’s coronavirus outlook as Australia recorded its first day of zero new coronavirus cases for months at the weekend.
Today’s stronger-than-expected Australian retail sales data also boosted hopes that Australia weathered the coronavirus lockdown better than expected.
Of course, US presidential election developments will remain a huge focus for the ‘Aussie’, but tomorrow’s Australian trade balance data could be influential as well.
Thursday, 5th November
00:30 Australian Trade Balance
07:00 German Factory Orders
09:30 UK Construction PMI
10:00 Eurozone Retail Sales
12:00 Bank of England (BoE) Policy Decision
19:00 Fed Policy Decision