As we are heading to the final stage of the political event of the year. Democrat Joe Biden pushing closer to the 270 Electoral College votes and Donald Trump is on 214. While the outstanding mail ballots are difficult to estimate because some states like Nevada opted to send ballots to all 1.7 million active registered voters this year due to the pandemic.
“I’m not here to declare that we won, but I am here to report, that when the count is finished, we believe we will be the winners,” Democrat candidate Joe Biden said on Wednesday.
Wall Street ended higher on Wednesday as the latest election results shows that Joe Biden is much closer to victory, his administration is expected to pass big stimulus packages, in an effort to boost the economy that has been so hard-hit by the COVID-19 pandemic.
Crude oil prices trading higher on Thursday boosted by the greater than expected drop in EIA US crude inventories over the past week. On the other hand, OPEC is considering a possible extension of oil output restrictions into Q1 2021.
In the currency market, the EURO ignored the weaker-than-expected German factory order data and climbed to fresh weekly high against the US dollar. At the time of writing, the currency pair trades above 1.1780.
The gold price volatility continues as the inventors anxiously awaiting the final results of US election and the yellow metal also supported by the continued increase in fresh coronavirus cases across several countries.
On the data front, the Bank of England decided to leave benchmark interest rates unchanged at 0.10%. BOE increased its bond-buying program by a larger-than-expected £150 billion but warned that Britain's economy is expected to shrink by 11% in 2020, compared to a 9.5% contraction predicted in August.
Moving ahead to the North American session, the traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement and the press conference of U.S. Federal Reserve chair Jerome Powell.
Moving ahead today, the important events to watch:
US – Initial jobless claims: GMT – 13.50
US – FOMC Interest rate decision and statement: GMT – 19.00
US – FOMC press conference: GMT – 19.30
The worldwide coronavirus cases have reached 48 million. According to Johns Hopkins University, the U.S. had 102,831 confirmed new cases of the coronavirus Wednesday, an increase of more than 11,000 from the day before. Italy reported 30,550 new infections on Wednesday, up from 28,244 on Tuesday; and registered 352 fatalities.
GBP/USD: The British pound climbed back to above 1.30 after the BOE pumps additional £150B into the UK economy and also supported by the weaker USD.
The important levels to watch for today: Support- 1.2980 and 1.2940 Resistance- 1.3050 and 1.3080.
GOLD: The yellow metal surged to a fresh session high of $1919 on Thursday. If the bullish momentum continues the next upside to watch $1930/32. On the other hand, the immediate support at $1910/08.
The important levels to watch for today: Support- 1910 and 1895 Resistance- 1926 and 1932.
Quote of the day: The best traders are not afraid of holding on to strong stocks, they are afraid of holding on to losing stocks- Tyler Bollhorn.