Earlier in the Day:
It’s was a quiet start to the day on the economic calendar this morning. There were no material stats for the markets to consider in the early hours.
On the monetary policy front, the RBA is in action later this morning, though the main event of the day is the U.S Presidential Election.
Expect the results to have a material impact on market risk sentiment throughout the day, though the outcome may not be known for weeks. Much will depend on the margins of victory, with mail voting expected to delay the outcome for a number of U.S states.
For the Majors
The Day Ahead:
For the EUR
It’s a particularly quiet day ahead on the economic calendar.
There are no material stats to provide the EUR with direction on the day. The lack of stats will leave the EUR in the hands of the U.S Presidential Election, COVID-19, and Brexit.
Expect the election results to be the key driver, however. Any suggestions of another surprise Trump victory would likely test support for the EUR. A second term for Trump would likely leave the EU in Trump’s trade war sights…
At the time of writing, the EUR was flat at $1.1641.
For the Pound
It’s also a particularly quiet day ahead on the economic calendar. With no material stats due out of the UK, the Pound will be in the hands of Brexit chatter and the U.S Presidential Election.
A Trump victory would be Pound positive… With Brexit talks continuing, a Biden victory is expected to leave Johnson and the Brexiteers on a weaker footing.
At the time of writing, the Pound was down by 0.01% to $1.2916.
Across the Pond
It’s a relatively quiet day ahead for the U.S Dollar. September factory orders are due out later today.
We don’t expect the Dollar to respond, however, with the result of the U.S Presidential Election the key driver on the day.
The Dollar Spot Index rose by just 0.01% to 94.044 on Monday.
For the Loonie
It’s a quiet day on the economic data front, with no material stats to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices. A Trump victory should provide crude oil prices and the Loonie with support, though Trump’s trade wars could limit any upside.
At the time of writing, the Loonie was down by 0.03% to C$1.3321 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.