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ZFX: Relief bill is coming ahead? Optimism resumes - Zeal Capital Market

ZFX: Relief bill is coming ahead? Optimism resumes

23-10-2020 03:20

On Thursday mid trading session, House Speaker Nancy Pelosi said that a deal with the Trump administration was “just about there”. The Wall Street was boosted after the news as investors believe that the Congress and the White House will handle the remaining issues.

However, shares in Asia Pacific were mixed as investors are not only closely monitoring the progress of the new relief bill in US, but also the development after the last round of the Presidential debate today morning time. More bad news from the Biden side related to his son, Hunter Biden, may further influence the election outcome, as now the polls showed that Biden is just leading around 8% support on average, dropping from over 10%.

In FX market, the performance of the greenback was mixed as well. Hopes on the relief bill lowered the safe-haven demand in the market while those riskier currencies like Aussie was favored with such situation, bouncing to 0.7130 level above. On the other hand, the talk of the EU-UK deal was still uncertain, weighing on sentiment over the Euro and Sterling.

On Thursday, the officials of the UK confirmed to resume talks with the EU, once driving the optimism over the trade deal. However, traders turned back to cautious strategy as uncertainties over the deal remained the same. Fair competition rules, dispute resolution and fisheries were still the issues needed to be resolved.

The officials inside generally predict that there will be no “breakthrough” progress in this round of negotiations. The EU has already stated that negotiations will go on until mid-Nov and the “UK team” will go to Belgium to continue the talks next week.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.