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. See our updated Privacy Policy here.

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
GBP/USD
Bearish
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
Real Time News
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
S&P 500, Nasdaq Plunge as Trump Collapses Stimulus Talks

S&P 500, Nasdaq Plunge as Trump Collapses Stimulus Talks

Rich Dvorak, Analyst

S&P 500 PRICE OUTLOOK: STOCKS SLIDE SHARPLY AFTER TRUMP PUTS AN END TO FISCAL STIMULUS NEGOTIATIONS UNTIL AFTER ELECTION

  • US President Trump just stopped coronavirus stimulus negotiations until after the election
  • S&P 500 price action plunged about 1.5% from intraday highs as stocks nosedive in response
  • The Nasdaq and Dow Jones are falling fast as well while the VIX and US Dollar both rip higher
Advertisement

Stocks are notching a nasty intraday reversal to the downside in response to unexpected headlines from US President Trump. POTUS just came out rejecting the $2.2-trillion coronavirus aid package proposed by Democratic House Speaker Nancy Pelosi, which is costlier than the $1.6-trillion stimulus deal set forth by Treasury Secretary Steven Mnuchin on behalf of the Trump administration. Fiscal aid to state and local governments stands out as the largest sticking point leading to the breakdown in stimulus negotiations.

S&P 500 INDEX PRICE CHART WITH NASDAQ, DOW JONES OVERLAID: 5-MINUTE TIME FRAME (05 OCT TO 06 OCT 2020)

S&P 500 Price Chart Stocks Drop as Trump Collapses Fiscal Stimulus Talks Until After Election

Chart created by @RichDvorakFX with TradingView

The S&P 500 - along with other major stock market indices like the Nasdaq and Dow Jones - have been ripping higher since the last week of September amid rekindled fiscal stimulus optimism. Following the latest collapse in stimulus talks, however, stocks have begun declining sharply.

Not only have fiscal stimulus negotiations collapsed again, President Trump also stated that his team will not resume coronavirus aid talks until after the election. This further delays the delivery of much-needed fiscal stimulus to the US economy, which Federal Reserve Chair Powell has desperately pleaded to politicians for recently as the pace of the economic recovery slows, and to mention, remains very fragile.

US DOLLAR PRICE CHART WITH VIX INDEX OVERLAID: 5-MINUTE TIME FRAME (06 OCT 2020 INTRADAY)

US Dollar Index Price Chart VIX Index Volatility Coronavirus Aid Package Negotiations

Chart created by @RichDvorakFX with TradingView

Also, the S&P 500 VIX Index, or fear-gauge, has been ripping higher as stocks sell off hard. This influx of risk aversion owing to failed stimulus talks seems to be providing a boost to the US Dollar as well, which is a popular safe-haven currency that tends to rise amid deteriorating market sentiment. Correspondingly, as shown in the chart above, the VIX Index and DXY Index typically move in tandem with one another.

Keep Reading - Dow Jones Forecast: How Will the Election Affect the Stock Market?

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES