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Risk-off Sentiment In Equites Continue After US Treasury Secretary Faded The Hope Of Fiscal Stimulus Before US Election

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  • Big day for pound as Brexit headlines in EU Summit later in the day will keep the GBP pairs highly volatile

Equites trading red following the overnight trend in US equities which ended lower after US Treasury secretary Steven Mnuchin cast doubt on securing a fiscal stimulus deal before the presidential election next month. The S&P500 dropped 0.7 per cent, erasing earlier gains, while the tech-heavy Nasdaq Composite fell 0.8 per cent. Mr Mnuchin said that despite progress in talks with Democrats the two sides remained “far apart” on certain elements of a deal as mentioned in FT.

A big day for pound as EU Summit kicks-in later in the day. Earlier pound has recovered ground lost against a host of major currencies earlier in the week on fresh news headlines confirming the UK won’t walk away from trade negotiations as their self-imposed deadline races into view. The government confirmed on Wednesday they would stay at the negotiating table, relieving concerns that talks would break down due to a lack of progress. We are expecting wide swings based on GBPoptions volatility positioning.

US: Market slides as stimulus prospects dim

The US stock market finished session firmly into negative territory on Wednesday, 14 October 2020, as US Treasury Secretary Steven Mnuchin down played the chances of striking a stimulus deal before the election.

Treasury Secretary Steven Mnuchin said that getting a deal done before the election would be difficult, adding that both sides were still far apart on certain issues. He also noted, however, that Democrats and Republicans are making progress in some areas.

Downbeat comments from Treasury Secretary Steven Mnuchin that deal would not likely be made before the vote added to fragile sentiment following a mixed bag of quarterly earnings reports from major Wall Street lenders.

TREND : WEAK BULLISH / SIDEWAYS

Time                                      :           15/10/2020

Pivot                                     :           1.1747

Technical View                     :           LONG ABOVE 1.1767

Target                                   :           1.1787, 1.1803, 1.1831

Technical View                      :           SHORT BELOW 1.1727

Target                                   :           1.1707, 1.1691, 1.1667

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