- US election risk premiums are gradually declining after recent polls suggesting clean victory of Joe Biden
Meanwhile euro remains subdued and gradually losing its steam after many euro zone countries heading for strict lockdown restrictions. Industrial production this week may show that economic activities are now fading along with lower inflation. We think euro should head lower in coming days as dollar bid now getting increase ahead of US Election.
Global risk-on sentiment improves further after equity volatility index fell sharply amid market is giving a clean sweep for Biden’s win in the US election. Indeed Chinese Yuan rises the most in 14 years supported by Biden’s lead over Trump which may clear US-China policy. However it will too early to comment but apparently risk-on markets are advancing on Joe Biden winning hope.
US Market climbs for fourth straight session
The US stock market finished higher for fourth straight session on Monday, 12 October 2020, as risk sentiments fuelled by expectations of a coronavirus relief package and by a rally in technology stocks.
Results from big U.S. banks will be in focus this week, with JPMorgan & Co and Citigroup set to report on Tuesday.
TREND : WEAK BEARISH / SIDEWAYS
Time : 13/10/2020
Pivot : 1.1803
Technical View : LONG ABOVE 1.1823
Target : 1.1835, 1.1843, 1.1849, 1.1866
Technical View : SHORT BELOW 1.1783
Target : 1.1763, 1.1757, 1.1733