FOREX-Investors are now pausing

The Dollar Index remains flat as trading gets underway this week after dropping more than 0.5% during Friday. Investors are now pausing to see how negotiations for a stimulus package unfold in Washington. Last week's losses resulted from increasing hopes of an agreement between Democrats and Republicans that would allow the release of the much-needed funds. Such a scenario is positive for the country’s future economic prospects and diminishes demand for safe havens, with the dollar’s appeal waning as a result.

EUROPEAN SHARES-A new US stimulus package continues to sustain market sentiment.

European equities traded higher on Thursday, alongside Asian benchmarks and Futures on the S&P 500, as optimism about a new US stimulus package continues to sustain market sentiment. Investors’ risk appetite continues to grow as US lawmakers move closer to a new deal, while yesterday’s minutes from the last FOMC meeting also showed further support from US central bankers may also be on its way and this is helping to drive stocks higher everywhere. It is interesting to note that while the EU already successfully reassured investors by providing an unprecedented fiscal and monetary stimulus response earlier this year, most EU stock traders are focusing solely on the latest developments in the US, despite record infection numbers being registered on the old continent (France, Italy and Spain). Increased market volatility is expected this afternoon as the ECB’s Monetary Policy Statement as well as the Initial Jobless Claims data in the US loom. Today’s best performances come from Madrid with financial and energy shares leading the IBEX-35 Index higher, inside its major resistance zone around the crucial 7,000pts level.

GOLD-Continuing a slow dance just above $1,890

Gold is slightly up in the early trading, while volatility remains low. The spot price was unable to surpass the first key level of $1,895, continuing a slow dance just above $1,890. It seems investors are in a wait and see mode as they are still hoping for new stimulus from central banks to help the economy’s recovery. Meanwhile, they are carefully following US politics and the approaching presidential election in early November, trying to predict what impact it will have on US monetary policy and consequently on the US dollar and the gold price.

From a technical point of view, bullion remains in a lateral trading range between $1,850 and $2,070, waiting for a clear new direction.

FOREX-Investors await the speeches of ECB officials

Early Thursday trading started under the spell of continued risk appetite, with the depreciation of the safe haven dollar reflecting the sentiment of investors, whose mood lifted after the US President backtracked on his intention to postpone the approval of an economic stimulus package. With global stocks on the rise, the euro would normally be one of the beneficiaries of the current risk-on stance, but today the single currency’s performance is subdued relative to the dollar as investors await the speeches of ECB officials during the day, who in the past, under similar circumstances, have attempted to talk-down euro strength.

EUROPEAN SHARES -Important bullish impact on both US and Asian stock market

Monday’s optimism on President Trump’s improving health conditions as well as hopes of further stimulus from US lawmakers recently had an important bullish impact on both US and Asian stock markets, however, this sentiment isn’t continuing in Europe today after benchmarks opened mixed. While many investors welcomed the good news from the US, they may also prefer to stay cautious prior to today’s speeches from the chairs of both the ECB and the FED, Christine Lagarde and Jerome Powell. While nothing significant is really expected today from the central banks, investors will still scrutinize these speeches in order to get more clues on where monetary policies will be going soon, which could have an important impact on both the FX and stock markets. Today’s best performances are so far coming from the energy and industrial sector while healthcare and real estate trade at the bottom of the table. The IBEX-35 Index from Madrid leads the way so far in Europe and is now trading well above 6,830pts, closer to its major resistance at 6,900pts.

FOREX-The Dollar Index is almost flat in relation to other currencies

The Dollar Index is almost flat in relation to other currencies during early Tuesday trading. Today’s calm comes after the dollar dropped more than 0.4% during Monday, as risk appetite improved following the discharge of the US President from hospital and rising hopes that a deal between Democrats and Republicans will be reached by lawmakers in Washington on a much-needed fiscal stimulus package. The progress of these talks will be closely followed by the financial markets, as will any developments surrounding Donald Trump’s health with no news being good news for the greenback in the case of the latter.