- Global equites fell after Trump’s blocked for releasing fiscal package until election gets over.
Additionally Jay Powell, the chair of the Federal Reserve, has warned US policymakers that providing too little support for the American economy would be far more dangerous than offering excessive help, as he made one of this most detailed appeals for more fiscal stimulus which triggered euro and other carry currencies to fall against USD in fear of rising uncertainty about growth and hurdles for fresh fiscal stimulus. While Pound will be vulnerable as fresh rounds of Brexit talks starting from Thursday and requires high alert on Pound’s move based on incoming Brexit statements.
Mean while Donald Trumph as abruptly broken off talks with congressional Democrats on a new fiscal stimulus package until after next month’s presidential election. The move, announced by Mr Trump on Twitter on Tuesday, triggered an immediate sell-off in US equity markets as economists warned that the lack of government support could jeopardize America’s recovery from the corona virus pandemic. Speaker of the House has proposed a new round of stimulus worth $2.4tn, whereas the White House has offered $1.6tn, leaving a large gap between the sides. Global equities are now facing huge uncertainty emerging out from US politics as mentioned in FT.
US Market tumbles as Trump halts stimulus talks
The US stock market finished volatile session deeply into negative territory on Tuesday, 06 October 2020, on dampening stimulus hopes after President Donald Trump tweet that he would halt talks on coronavirus relief package with Democrats until after the Nov. 3 elections.
The selloff in the Wall Street triggered after the U.S. President Donald Trump’s tweet that he would end negotiations on a new fiscal stimulus package. Trump said he has instructed his administration’s negotiators to stop stimulus discussions with Democrats until after the Nov.3 presidential election.
Trump’s announcement in a tweet came on the heels of U.S. Federal Reserve Chair Jerome Powell’s warning of dire economic repercussions if Congress failed to pass additional fiscal stimulus. Federal Reserve Chairman Jerome Powell said during his speech at the National Association for Business Economics that the U.S. economic recovery U.S. economic recovery remained far from complete and the economy needs more fiscal support.
TREND : WEAK BULLISH / SIDEWAYS
Time : 07/10/2020
Pivot : 1.2918
Technical View : LONG ABOVE 1.2938
Target : 1.2958, 1.2985, 1.3064, 1.3116
Technical View : SHORT BELOW 1.2898
Target : 1.2878, 1.2814, 1.2772, 1.2683