News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
EUR/USD Surged With Stocks on Election Polls, Fiscal Stimulus Hopes

EUR/USD Surged With Stocks on Election Polls, Fiscal Stimulus Hopes

2020-10-05 23:00:00
Dimitri Zabelin, Analyst
Share:

2020 Election, EUR/USD, Stock Markets, Fiscal Stimulus - Talking Points

  • Biden surging in the polls despite Trump returning to the White House
  • Hopes of coordinated fiscal stimulus may be driving market sentiment
  • EUR/USD trading above key range – where might its gains be capped?
Advertisement

29 DAYS UNTIL THE US PRESIDENTIAL ELECTION

Markets now have less than 30 days until the 2020 US presidential election and the polls continue to show former Vice President and Democratic nominee Joe Biden in the lead. While President Donald Trump has been discharged from Walter Reed National Military Medical Center, his infection with Covid-19 has damaged his standing in the polls. Mr. Biden appears to now be polling above his 7-point average.

2020 US Election Polls

EUR/USD Surged With Stocks on Election Polls, Fiscal Stimulus Hopes

Source: RealClearPolitics

Markets appear to be welcoming the Democratic candidate more perhaps because of the potentially less uncertainty his administration would bring to global affairs, especially as it relates to trade. Market sentiment may also be getting lifted by investors pricing in a Democratic sweep in the upcoming election season, potentially opening the door to more governmental coordination.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Dimitri Zabelin
Improve your trading with IG Client Sentiment Data
Get My Guide

This could mean fiscal stimulus passing with greater ease whether it’s another coronavirus package of infrastructure spending. Either way, both could brighten the outlook especially with a growing emphasis on fiscal stimulus rather than monetary. As the election continues to unfold, polling data may start to more clearly impact market mood but could punish haven-linked assets like the US Dollar and Treasuries,

EUR/USD Price Analysis

EUR/USD is now again trading above a key inflection range between 1.1698 and 1.1720 after briefly puncturing below it in late September. This now opens the door to retesting potentially trend-defining resistance at 1.1936 and 1.1965. EUR/USD may boldly rise until that point where traders’ resolve will be tested in terms of their confidence of the pair’s upside potential.

EUR/USD - Daily Chart

EUR/USD Surged With Stocks on Election Polls, Fiscal Stimulus Hopes

EUR/USD chart created using TradingView

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES