Pay Attention To United States Presidential Election And Fed Interest Rate Decision
The Euro showed a downward movement versus the US Dollar last week as new Covid-inspired lockdowns in Europe prompted the European Central Bank to hint at more monetary easing.
Prime Minister Boris Johnson announced a month-long lockdown for England, one of his top ministers and closest allies signaled the measures might have to be extended if they fail to contain the spread of the coronavirus.
Belgium imposed new harsh curbs as the virus spirals out of control. Officials are warning that the health system could collapse if cases continue to rise.
In the US, San Francisco to pause reopening plans that were set to begin Tuesday
Uncertainty remains ahead of next week’s U.S. presidential election and the number of Covid-19 cases grows rapidly globally.
The 2020 United States Presidential Election is scheduled for Tuesday, November 3, 2020. Voters in America will decide whether Donald Trump remains in the White House for another four years.
Moreover, the Federal Reserve will deliver its interest rate decision on Thursday. There is no interest rate change expected from the Fed. Powell will hold a press conference following the meeting, awaiting his insights on the policy outlook.
Besides the Rate Decision, focus on the US Jobs Report on Friday. US Nonfarm Payrolls are expected to ease 600K in October from 661K. The Unemployment Rate is expected to drop to 7.6% from 7.9%. Average hourly earnings will also be significant and are expected to come out 4.6%, year on year basis.
The EURUSD pair dropped below the 1.1658 key resistance level. If the price stays below 1.1658 on a four hourly basis, the downward movement may continue and we will watch the support level at 1.1589. On the upside, if the pair rises above 1.1658, the next resistance level can be found at 1.1744
Support : 1.1589 - 1.1507 - 1.1421
Resistance : 1.1658 - 1.1744 - 1.1815
In the upcoming week, we will closely watch the BoE Rate Decision. The BoE is widely expected to increase bond purchases by 100 billion pounds to support the economy through another wave of coronavirus and Brexit. It would bring the central bank’s asset-purchase target to 845 billion pounds, almost double the level at the start of the year.
UK PM Johnson announced a new lockdown, through until December 2
Focus on the 1.2947 main level in the GBPUSD pair. If the pair stays below 1.2947 on a four hourly basis, selling pressure may continue and we will see the key support level at 1.2838. On the other hand, if the currency goes beyond 1.2947, the next resistance level is holding at 1.3046
Support: 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
The EURJPY pair closed last week above the main level of 121.59. As long as the pair sustains above 121.59 on a four hourly basis, we will see the main resistance level at 122.37. On the other hand, if the currency drops below 121.59, the next support level is holding at 120.75.
Support: 121.59 - 120.75 - 120.11
Resistance: 122.37 - 123.14 - 124.24
Keep your eye on the 1873 main support level in the Gold Price. As long as the price stays above 1873, on a four hourly basis, the safe haven, the Gold price might show an upward movement and we will follow the resistance level at 1904. On the downside, if the price breaks down below 1873, the next support level will be at 1854.
Support: 1873 - 1854 - 1829
Resistance: 1904 - 1932 - 1964
01 Nov 20 (Sun)
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