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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here: https://t.co/fndMQJLul8 https://t.co/elz5gNAKrB
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/7EzMPg9Kqg
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/D1DxtDkJXd https://t.co/DwkK9F9FCJ
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/30/Gold-Technical-Forecast-Election-Raises-Volatility-Risk-But-Support-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5hgGEojvIE
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/Frmn9y6yKJ
  • US #COVID19 cases hit a record for a second consecutive day -BBG
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:https://t.co/BNJ5uTKz1A https://t.co/VkvmiwWAtz
USD Unfazed While SPX Set to Open Higher Following Presidential Debate

USD Unfazed While SPX Set to Open Higher Following Presidential Debate

Share:

US Presidential Debate, Donald Trump, Joe Biden, US Dollar, S&P 500 – Talking Points:

  • The first presidential debate of the 2020 US elections appeared to have little effect on the market, as USD held firm and the S&P 500 nudged marginally higher.
  • President Trump’s tax returns may prove to be the target of further attacks from Democratic nominee Joe Biden

First Presidential Debate or Game of Schoolyard Insults?

The first round of the 2020 US presidential debate between Democratic nominee Joe Biden and incumbent President Donald Trump proved to be more of a game of schoolyard insults, as both men continually insulted and talked over one another.

However, Mr Biden’s composure and willingness to poke holes in his Republican counterpart’s response to the Covid-19 crisis could result in a more substantial widening in polling numbers.

In terms of an overall market reaction, the US Dollar slid marginally lower while S&P 500 futures initially rose before giving back all gains towards the end of the debate.

Attention now turns towards the second presidential debate scheduled on October 15, with market participants closely watching Congressional stimulus negotiations in the interim to determine the near-term outlook for risk-sensitive assets.

USD Unfazed While SPX Set to Open Higher Following Presidential Debate

Market reaction chart created using TradingView

Advertisement

Biden Pulling Away as Tax Scandal Hampers Trump Campaign

Democratic nominee Joe Biden appears to have extended his lead over Republican incumbent Donald Trump on the back of questionable tax practices by the current US President, with the New York Times reporting that Trump had paid no income taxes at all in 10 of the previous 15 years.

In fact, the year Trump was elected to the White House, he paid a paltry $750 in federal income taxes.

The damning report threatens to shatter the President’s image as a successful businessman, given that the Internal Revenue Service (IRS) report “portrays a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes”.

USD Unfazed While SPX Set to Open Higher Following Presidential Debate

Data source – Bloomberg

Clearly Mr Biden sees this as a chink in his competitor’s armour, as the former Vice President strategically released his most recent tax returns just moments before the start of the first presidential debate, showing that he had paid just under $300,000 in income taxes last year.

This release could endear the Democratic nominee to voters by showing that, in comparison to Mr Trump, Biden pays income tax just like every other working-class American.

US Dollar Index Daily Chart – Breakdown or Retest of Former Resistance-Turned Support

USD Unfazed While SPX Set to Open Higher Following Presidential Debate

DXY daily chart created using TradingView

From a technical perspective, the US Dollar Index’s (DXY) retreat from the March low (94.65) back to support at the September 2018 low (93.81) may validate the topside break of an Inverse Head and Shoulders reversal pattern, carved out above key psychological support at the 91.00 level.

Moreover, with the RSI continuing to track along the uptrend extending from the August extremes and hovering above its neutral midpoint, the path of least resistance looks to be higher.

Should support remain intact at the 94.00 mark, a retest of the monthly high (94.74) looks in the offing, with a daily close above the March low (94.65) needed to bring the June low (95.72) into focus.

S&P 500 e-Mini Futures Daily Chart – 200-MA Capping Topside Potential

USD Unfazed While SPX Set to Open Higher Following Presidential Debate

S&P 500 (e-mini) futures daily chart created using TradingView

The US benchmark S&P 500 index looks poised to continue its trek lower, as price fails to break back above the trend-defining 50-day moving average (3351.54) and the RSI struggles to clamber over its neutral midpoint.

With volume notably fading through the S&P 500 index’s rally from the monthly low (3198), the path of least resistance appears skewed to the downside.

To that end, a break back below the 38.2% Fibonacci (3306) would probably ignite a more sustained pullback and potentially lead price back towards the sentiment-defining 200-DMA (3104.21).

US 500 BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% -5% -2%
Weekly 8% -22% -10%
What does it mean for price action?
Get My Guide

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

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

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

DISCLOSURES