Fed minutes eyed

October 7, 2020

A stack of data is scheduled for publication today as a breakdown in stimulus measures sends markets down.

Traders and investors flocked to the USD overnight, sending paired currencies down. The EURUSD opened the day at $1.17803 and was reasonably steady for a large part of the day, hitting a high of $1.18072 heading into late trading. The euro fell from those highs, hitting a low of $1.17310 just before the end of the session. It is now trading at $1.17347. The story was much the same for the GBPUSD after beginning the day at $1.29728. Mid-session trading saw the pound peak at $1.30065 before falling away for the rest of the session, dropping to a low of $1.28654. It has come off those lows slightly and is now trading at $1.28832.

Stalled talks on a new round of coronavirus stimulus sent the Dow packing overnight. It began the day at 28,125.75 and was flat for most of the day before peaking at 28,355.20. When Donald Trump announced that he was halting negotiations on a new stimulus bill until after the election, the Dow tumbled to lows 27,649.81 in the final hour of the day. It has come off those lows and is now trading at 27,730.30. The Dax opened at 12,861.30 and slipped to lows of 12,770.84 mid-session. The German index bounced off those lows, hitting a high of 12,963.56 late in the day. However, a falling Dow dragged the Dax down and it eventually closed at 12,806.20.

The day ahead is set to be a busy one, with traders waiting intently on the latest Fed meeting minutes, scheduled for release in the early hours of tomorrow morning.

Data published today includes:

Japan – Leading Indicators

Canada – Ivey PMI

UK – Halifax HPI

US – Crude Oil Inventories, Consumer Credit, FOMC Members Neel Kashkari and John Williams speak

Europe – German Industrial Production, French Trade Balance, Italian Retail Sales, Swiss Foreign Currency Reserves, ECB President Christine Legarde speaks

 

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