Markets deteriorate further despite strong growth numbers
Another ugly night for markets as coronavirus uncertainty and pre-election jitters snuff out any gains made by the stronger-than-expected GDP figure from the US.
As uncertainty grips the world, traders continue to flock to the USD. The EURUSD began Thursday at $1.17435 and edged up to a high of $1.17582 early. Mid-session saw the euro fall, ultimately hitting lows of $1.16493 late. It has come off those lows and is now trading at $1.16735. The GBPUSD opened the day at $1.29817 and climbed to highs of $1.30248 mid-session. Things went south from there as the pound tumbled to lows of $1.28798 late in the day. It bounced off those lows and is now trading at $1.29246.
Indices continue to struggle amid global uncertainty. The Dow started the day at 26,593.11 and marched up to a high of 26,906.42 mid-session. It reversed those gains and fell further, hitting lows of 26,267.66 late. The release of the US GDP figures saw a short-term rally to 26,880.15 but it fell again and closed at 26,435.43. It is now trading at 26,506.30. The Dax finally steadied itself, bucking the trend seen in the US. The German index opened at 11,553.08 and traded in a tight range for most of the day, sliding to lows of 11,450.02 late before rebounding and peaking at 11,704.83. Those highs were given up as the Dax closed at 11,583.65, while it is currently trading at 11,570.00.
The day ahead sees the release of a stack of data from around the world. However, data seems to be the furthest thing from traders’ minds as the US election campaign enters its final days. Many traders will remain on the sidelines until the results from the election are known.
Data published today includes:
Japan – Housing Starts
Canada – GDP, IPPI, RMPI
UK – Nationwide HPI
China – Manufacturing & Non-Manufacturing PMIs
US – Core PCE Price Index, Personal Spending & Income, Employment Cost Index, Chicago PMI, UoM Consumer Sentiment & Inflation Expectations
Europe – European Unemployment Rate, Prelim Flash GDP, CPI and Core CPI, German Prelim GDP and Retail Sales, French Flash GDP, Prelim CPI and Consumer Spending, Italian Prelim GDP, Prelim CPI and Monthly Unemployment Rate, Spanish Flash GDP, Swiss Retail Sales and KOF Economic Barometer, German Buba President Jens Weidmann speaks
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