Here is what you need to know for Friday, October 9:
Risk assets remained firm as optimism over additional fiscal support in the US resurfaced.
Wall Street advanced and crude prices surged, the dollar was back and forth as was gold while the commodity complex caught a bid.
US House Speaker Nancy Pelosi expressed confidence that she would be able to reach an agreement with Treasury Secretary Steven Mnuchin.
White House adviser Larry Kudlow said the Trump administration would like to see “standalone” bills to provide additional unemployment assistance and extend the Paycheck Protection Program, but also told Fox News that the economic recovery did not depend on a stimulus deal.
Senate Leader Mitch McConnell, however, warned there remain “vast differences” between Democrats and Republicans regarding the size of a new round of fiscal aid.
Trump in an interview with Fox News said talks with Congress have restarted over further COVID-19 relief. Much to the contrary of the many observers, and McConnell, Trump said there is a good chance one could get done.
Gold pushed higher early in the session on the stimulus package hopes, weighing on the USD. The yellow metal subsequently hit USD1900/oz. However, reports suggesting the talks had once again broken down saw prices sell-off, reversing much of the gains on the day. The price moved between $1,900 and $1,882.
Gold Price Analysis: Bulls testing bear’s commitments at last resort resistance
The US dollar remains glued to the floor at a critical support structure, albeit stationed outside of the channel and potentially about to embark on a bullish wave to complete a 5-wave sequence:
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The NZD/USD has shown resilience despite the Reserve Bank of New Zealand’s dovish rhetoric.
NZD/USD enters Asia on the bid, bulls eye 0.6630
WTI, leading the commodity complex higher, CRB index highest levels for October at 151.34, prices rose sharply as another hurricane threatens to significantly disrupt output in the US.
”Hurricane Delta, currently a category 2 storm is expected to reach the Louisiana on Friday. It was forced the shut-in of approximately 80% of production in the Gulf of Mexico, which equates to 1.5mb/d, analysts at ANZ bank explained ”
Top cryptocurrencies have been bid with Bitcoin spiking to print the highest level for October so far, at 10956.
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