US election, China stimulus and metals rising

Frank Walbaum FX Strategies.Asia

Important news for the week

Wed, 23rd, 15:45 CET CA Interest rate decision.
Thu, 24th, 09:15 CET FR Manufacturing PMI.
Thu, 24th, 09:30 CET DE German Manufacturing PMI.

US policies

The election in the US is around the corner and markets remain strongly bid to the upside. During his four year at the helm of the biggest economy in the World President Biden has added the American rescue plan, to support the economy and private households. With his election also the Dollar had geared up steam and resumed fresh strength in the recent weeks in October. As rates are being reduced as a result of falling inflation data markets might remain volatile in the coming weeks ahead. Meanwhile, China’s stock market continues to decline as stimulus measures lose favor with investors, leading to weaker performance.

Market talk

After a strong push on Friday in the metals sector the upside potential might continue. Silver has broken out of the USD 32.10 technical resistance zone and could hence push higher. the next resistance might be the USD 35.20 area. Similarly also Gold prices have moved and should be traded with caution now as the RSI indicates a strong overbought territory. Any strength of the USD around the US election could cause a sharp reaction to lower levels. This week might offer volatility in the CAD due to the upcoming interest rate decision on Wednesday.

Tendencies in the markets

Equities positive, USD weaker, cryptos sideways, oil weaker, metals stronger, JPY weaker

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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