US Elections. COVID Resurgence.

Welcome to this week’s Market Blast Fundamentals where we will look at the Dow Jones Industrial Average (US100), WTI (US Oil), Brent Crude (UK Oil), USDCAD and the VIX.

Let’s jump straight into this week’s Economic Calendar where we see Interest Rate decisions from Australia, the UK, and the United States and the US Non-Farm Payrolls which are normally huge news events.

Of course they are, but two events will hold the interest of traders in the US Elections and the global problem with the latest Coronavirus lockdowns.

At the end of this video, you will find a link to last weeks’s video as a guide to the US Elections.

All major global stock indices are lower today on COVID fears with the Dow Jones Industrial Average falling back to the 200 Day Moving Average.

Also, both Brent Crude and WTI have fallen back to the $36 and $34 ranges respectively on fears of lower demand during lockdowns and curtailed air travel.

As usual, any news on a Coronavirus vaccine could change all this quite quickly so traders will be monitoring the news on this.

The stock market sell-off means the investors converted mostly to US dollars and we see USD strength against all major currencies with the Canadian Dollar suffering the most with the price of crude oil.

In fact we see Canadian Dollar weakness against all other currencies.

Again, watch for volatility with the US Elections tomorrow and refer back to our video called “US Elections - 4 Scenarios”

And, finally, keep an eye on the VIX, which monitors volatility on S&P 500 Options, which has jumped from 25 to 35 in the last two weeks.

That’s all for now.  Happy trading with Valutrades and we will see you tomorrow.

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