Home Forex News The US benchmark S&P 500 fell 3.5 per cent, its biggest one-day...

The US benchmark S&P 500 fell 3.5 per cent, its biggest one-day loss since June amid sharp rise in covid cases in US

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  • Euro continues to remains weak after fresh lockdown in Europe triggered growth concerns.

Amid surging cases across Europe, the European Central Bank meeting on Thursday is expected to resist pressure to unveil new stimulus measures, but will likely pave the way for action in December. Traders also braced for volatility with the U.S election less than a week away, while the country, like Europe, also faces an increase in corona virus infections.With formerVice President JoeBiden consistently leading in the polls over President Donald Trump, traders cautiously bet on his victory and a possible “blue wave” outcome, where Democrats control both chambers of Congress.

Data due on Thursday includes U.S. third-quarter gross domestic product, which expect to show record growth but not enough to make up for the pandemic impact. The Bank of Japan ends its two-day policy meeting later in the day and expects the central bank to keep monetary settings unchanged. Equity and currency volatility shot higher on Wednesday and the cost of sourcing dollars rose, reflecting fears that the U.S. election and resurgent COVID-19 pandemic could tip markets back into the sort of chaos endured earlier this year

US Stocks tumble on coronavirus worries

The US stocks finished session steep lower on Wednesday, 28 October 2020, with key indices falling to its lowest closing level in nearly three months. Market risk aversion selloff triggered across the board amid concerns about spiralling coronavirus pandemic and its potential impact on the economy. Meanwhile selloff accelerated due to Washington’s failure to reach a deal on new fiscal stimulus before Election Day.

Market mood dented amid renewed concerns over the pace of the global economic recovery from the pandemic after alarming rise in novel coronavirus cases in some European countries and the United States. Twelve U.S. states set records for hospitalized COVID-19 patients, while Germany and France announced plans to shut large swathes of public life for a month as the pandemic surged across Europe.

The U.S. has averaged more than 70,000 new coronavirus cases a day over the past week, with 29 states setting new records this month for the most new daily cases since the pandemic began in February. More than 8.78 million cases have been reported nationwide and at least 226,000 people have died of COVID-19, according to data from John Hopkins University (JHU). According to JHU, the average number of daily new cases this past week is up 21% compared to the previous week.The jump in new infections has also been accompanied by an increase in hospitalizations and deaths, leading to worries about new lockdowns.

A spiraling pandemic and a failure to reach a deal on a fresh round of US fiscal stimulus before the Nov. 3 election have put the blue-chip Dow and the benchmark S&P 500 on track to erase their gains for October. Besides the coronavirus and US fiscal stimulus, investors are also jittery over the US presidential election. Polls showing a tightening of the race in Florida and some other swing states have increased concerns about a potentially contested outcome.

TREND : WEAK BEARISH / SIDEWAYS

Time                                      :           28/10/2020

Pivot                                     :          1.1751

Technical View                     :           LONG ABOVE 1.1771

Target                                   :           1.1791, 1.1801, 1.1824, 1.1858

Technical View                      :           SHORT BELOW 1.1731

Target                                   :           1.1711, 1.1702, 1.1678, 1.1644

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