- Sterling remains choppy amid Brexit talks have been extended till November.
The yuan held near a two-year high against the dollar in offshore trade on Tuesday on signs of a robust economic recovery in China however, doubts about a U.S. stimulus deal capped gains for other risk currencies. Data on Monday showing a recovery in China’s consumer sector helped boost not only the yuan but other currencies, including the euro. However, broader confidence was later dented by a fall in U.S. share prices as investors grew cautious about prospects of a stimulus deal in Washington. U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin “continued to narrow their differences” in a telephone conversation on Monday, her spokesman said.
Britain’s chief Brexit negotiator David Frost said there was no basis to resume trade talks with the European Union unless there is a fundamental change in Brussels’ approach to negotiations. However, investors still think British and European negotiators might be able to salvage post-Brexit trade talks to prevent disruptions that a no-deal finale to the five-year Brexit drama would cause.
US Market falls 1.44%
The US stock market finished session mostly lower on Monday, 19 October 2020, as risk sentiments undermined due to opposition to a sizable pandemic aid package hardened in the Republican-controlled US Senate.
Market erasing early gains to end lower amid signs of rising coronavirus infections and as Congress remained apart on a fresh government spending deal, denting hopes for a breakthrough before the election. President Donald Trump, who is trailing far behind his challenger Joe Biden in the polls, has proposed a US$1.8 trillion package and indicated he would go higher, while Democrats in the House of Representatives have approved a US$2.2 trillion measure. However, Senate Majority Leader Mitch McConnell has repeatedly signaled he would not support a massive package.
A National Association of Home Builders survey released on Monday showed record optimism in the industry but investors were nonetheless focused on the dwindling time Congress and White House have to agree on a spending package to boost the coronavirus-ravaged US economy.
TREND : BULLISH
Time : 20/10/2020
Pivot : 1.1758
Technical View : LONG ABOVE 1.1778
Target : 1.1798, 1.1828, 1.1854, 1.1909
Technical View : SHORT BELOW 1.1738
Target : 1.1718, 1.1708, 1.1662, 1.1626