In today’s live trading session, we gave our insight into how tomorrow’s US Election will affect the Forex market.
Although national polls show Joe Biden as the favorite to win the election, many speculators are giving Donald Trump a punchers chance. We believe that if Biden wins the election, the US Dollar will weaken, Gold will rise and stocks will slip. We say this because the Democratic party is looking to pass a huge stimulus bill. On the other hand, if Trump wins, we see a stronger US Dollar, weaker Gold, and a robust stock market. Both these reactions are for the short term. As for the long term, we are bullish for the US Dollar irrespective of who holds the office.
In addition to an Election, this week also contains monetary policy statements from several nations as well as the all-important Non-Farm Payroll release. We expect Japan, the United Kingdom, and the United States to keep their monetary policy as is. The Forex market will still react to these statements. As for the NFP release, the predictions are mixed as fewer jobs were added, but unemployment is expected to drop to 7.6%.
Virtually every single day of this week has at least three high impact news events. It is understandable why many traders are opting to not trade this week. We share a similar stand, although, we do have some setups that are looking quite promising. It’s always best to learn from the mistakes of others, so let’s spectate from the sidelines. As always, be safe and trade responsibly!
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