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Here is what you need to know on Friday, November 6.

Markets are taking profits and the dollar bounces after the rally earlier this week. The US elections have yet to be called, with markets glued to four states. The Fed hinted at more QE ahead of October’s Nonfarm Payrolls. Gold is off the highs but Bitcoin surges. 

Profit-taking: S&P 500 futures are down on Friday after rallying throughout the week. The US dollar is attempting a recovery, clawing back some ground against major currencies, yet remains around the March lows against the yen. 

Gold is also edging lower after topping $1,950 on Thursday. WTI Crude oil is also edging lower, battling the $38 level.

Bitcoin seems unstoppable, trading above $15,700 at the time of writing, the highest since January 2018. Other cryptocurrencies are trailing behind. 

US elections: Democratic candidate Joe Biden has narrowed the gap against President Donald Trump in Pennsylvania and Georgia, and expanded his lead in Nevada. The incumbent is trailing the challenger in Arizona, yet has inched closer. Political analysts assess that Biden has greater chances of winning the presidency according to an analysis of pending ballots. 

Trump has repeated his unsubstantiated claims of fraud and called to stop the vote in states where he is leading. Several fellow Republicans distanced themselves from these calls. The count in Georgia could trigger run-offs in two Senate races that could still tilt the upper chamber in favor in Democrats, albeit in an extremely narrow path. On the other hand, Republicans have gained ground in the House. 

The Federal Reserve has left the interest rate unchanged and opened the door to adjusting and enlarging its bond-buying program. The Fed noted that the pace of the recovery has moderated and expressed concerns about the resurgence of coronavirus in the US and abroad. He also repeated his call on lawmakers to provide additional fiscal stimulus. 

See Fed Analysis: Powell adds fuel to the market fire by defending QE, rally set to extend

US Nonfarm Payrolls are set to show an increase of around 600,000 jobs in October, down from 661,000 in September. The pace of job restoration is slowing down but remains robust. Bloomberg’s “whisper number” stands at 666,000, better than what the economic calendar projects. The Unemployment Rate is set to fall from 7.9% to 7.7%.

See Nonfarm Payrolls Preview: Encouraging data but little action expected

Canada is projected to report an increase of 100,000 positions in October, with the jobless rate slipping from 9% to 8.8%. 

See Canadian Jobs Preview: COVID-19 second wave to weigh on labor market recovery

Brexit: Negotiators from the EU and the UK hit a snag earlier this week after several days of progress. Updates on the talks usually come out on Friday and could move GBP/USD, which is holding above 1.31.

Sterling jumped after the Bank of England expanded its bond-buying scheme by £150 billion, more than expected. The BOE also refrained from setting negative rates, yet Governor Andrew Bailey clarified that the option remains on the table.

See BOE Analysis: Bailey give pound bulls three gifts, what to watch for next