Bullet Report: USD under threat as elections enter new phase.

The economic calendar is busy this week, but Monday starts in a light tone. Standing out are Germany’s IFO release and US home Sales. Also ECB’s Draghi is expected to speak, as well as a few FED members. In the US, the presidential campaign is entering a new phase as the first of 3 debates is taking place tonight between Hilary Clinton and Donald Trump. Although polls show Clinton is in the lead, the gap between the two has narrowed and the election is now a much closer race than expected a month ago. As a result, markets will begin to focus more on US politics as Election Day draws nearer and we could see some market reaction, especially if Donald Trump continues gaining momentum.

Currencies: The USD has been held in a narrow range against all currencies overnight, continuing its range from Last Friday. The USDJPY was down 0.1% at 100.86. It saw a one-month low of 100.10 on Thursday before pulling back to as high as 101.25 towards the end of last week. On the other hand, the USD performed better against the Australian and Canadian dollars after crude oil prices tumbled on Friday and weighed on the commodity-linked currencies. Currency to watch out for is the GBPUSD which dipped to a 5-week low on Friday of 1.2913 before bounding to 1.2972 at time of writing.

Stocks: Asian stocks are trading lower today, falling from their 14 month highs and European stocks have opened also in the red. In the US, Friday saw the major stock markets gain, but ending the day with losses. Despite this, the SP500 was able to record its best weekly performance in more than 2 months after the FED kept rates unchanged.

Oil and Gold: Oil prices tumbled 4% on Friday after Saudi Arabia and Iran were said to make little progress in achieving agreement to freeze production. Today, prices rose a little after Algeria’s energy minister said that all options were possible for an oil output cut or freeze at this week’s OPEC meeting. Gold was little changed on Friday, hovering between $1132 and $1340.

The post Bullet Report: USD under threat as elections enter new phase. appeared first on Forex.Info.

Source:: Bullet Report: USD under threat as elections enter new phase.