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Analysis

It's election day in the US – Here is what you need to know

Important news for the day

  • Tue, 05th, 04:30 CET        AU        RBA interest rate decision.
  • Tue, 05th            US        Presidential election.

US election day

According to the polls, it will be a close race in the US election. Kamala Harris could even be in the lead, as the latest figures suggest. Some may be reminded of the 2016 election, in which Trump surprisingly won. Financial markets have lost some momentum in the past week, but are currently in a sideways pattern. Last week's candlestick pattern suggests that the downward momentum could continue. In the long term, it will not matter who the new President will be, as the indices are likely to continue their medium term path.

Market talk

The RBA has left interest rates at similar levels and hence the Australian Dollar did not offer much momentum moving forward. Instead some upside can be seen, which might be fuelled due to the slight weakness of the Greenback in general. Precious metals remain in sideways pattern, similarly to oil prices. Both markets might proceed to lower levels as the long- term charting pattern is suggesting. Crypto markets on the other hand have started some slight upside momentum. Yet also these markets look rater limited and might also face further setbacks in the near future. The general outlook in markets might be influenced by Gold prices. The weekly chart is suggesting a bearish candlestick pattern, which might lead to falling prices. The risk sentiment could hence face upside price action.

Tendencies in the markets

  • Equities sideways, USD weaker, cryptos sideways, oil sideways, metals sideways, JPY stronger.

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