Dollar traders fear midterm-election risk, but here’s the reason the buck remains too enticing to ignore;
The impending U.S. midterm elections pose a downside risk to the U.S. dollar, but as the highest-yielding developed-market currency, the greenback just remains too attractive to ignore—for now. The dollar, measured by the popular ICE U.S. Dollar Index DXY, -0.05% has climbed 4.6% so far this year against the six major rivals represented in the gauge. Its strongest months so far were May and June when the themes, such as fiscal stimulus and favorable interest-rate differentials, lifted it. More than three months later, those themes seem to have run out of steam, said Mazen Issa, strategist at TD Securities. “I’m not sure where the catalyst would come from that could keep pushing the U.S. exceptionalism and support the U.S. dollar,” Issa said, adding that the midterm election could be a point for traders to reassess currency positions. Ahead of the elections, he expects “to see some de-risking.” Read More @ https://www.marketwatch.com/story/dollar-traders-fear-midterm-election-risk-but-heres-the-reason-the-buck-remains-too-enticing-to-ignore-2018-10-26?mod=newsviewer_click
GBP MIGHT JUST GET INTO TROUBLE ONCE AGAIN – UK services growth slows to seven-month low as firms fear for outlook: PMI
Business activity in Britain’s dominant services sector slowed to a seven-month low last month and firms’ expectations for the coming year are the gloomiest since just after the 2016 Brexit vote, a major survey showed on Monday. Read More @ https://www.reuters.com/article/us-britain-economy-pmi/uk-services-growth-slows-to-seven-month-low-as-firms-fear-for-outlook-pmi-idUSKCN1NA0Z3
WHAT IS THE USD SAYING?
USD is back again to the limelight with congressional election; mid-term risk for the USD remains. Technically the USD is still a strong uptrend. Fundamentally it might be affected short-term fall.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 11.30am – Be ready for AUD volatility with RBA releasing their rates and RBA statement. AUD still under pressure with US-CHINA TRADE issues.
- 3.00 – 5.00pm – EUR will release Germany, Spain, France and Euro Services PMI – expected to be little change. Little or no movement for EURO.
- 9.30pm – Canada will release their Building permits – expected to be weak. Little or no movement expected.
- 11.00pm – US will release JOLTS – It’s released late, but can impact the market because job openings are a leading indicator of overall employment; expect little or no movement.
- ALL DAY – Congressional Election – Voters will elect all 435 members to the US House of Representatives, and 34 members to the Senate; The outcome will likely be projected before the official vote count is completed, based on early vote counts and exit polling; USD volatility expected.
USD will go volatile today with the congressional election – expected to be good for the USD. Be cautious with good money management.
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