Trade Idea (2020-11-03) No direction ahead of US presidential election

Trade Idea

Good morning.

US stocks rebounded yesterday, with DJIA rising to over USD 500 temporally. Whichever of the presidential candidates wins, market is expecting the scale of additional economic measures to grow, and it is important that the results be clear.

In the foreign exchange market, EURUSD fell continuously on the 6th, USDJPY remained in the upper 104 range, and there was some movement to buy USD in the New York market, but it continues without a sense of direction ahead of the US presidential election. Infections of COVID-19 in the United States and Europe are deteriorating, and UK government has announced that it will begin a second rock-down.

It seems that the market will move from around noon Japan time on Wednesday, 4th tomorrow. The results from Florida, Pennsylvania, etc. are likely to make a big volatility.

EURUSD H1 (Please click the chart to enlarge.)

USDJPY H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday

DJIA: 26,925.05 (+423.45, +1.6%)
NASDAQ: 10,957.61 (+46.02, +0.42%)
S&P 500: 3,310.24 (+40.28, +1.23%)
GOLD: 1,897.3 (+4.8 +0.254)
OIL: 36.71 (-0.1)
US 10-YR: 0.852 (+0.004)
VIX: 37.13 (-0.89 )

Asian market today

Nikkei: holiday
CME Dow future: 26,993~(+67 Dow)

Economic indicators today

GMT 03:30 (AU) RBA policy interest