The risk-off mood has gained upper-hand as the US fiscal stimulus negotiations failed to gain much progress even as the presidential election approaches near. The EU summit will have a significant focus on the pandemic progress and the economic implications, while the US session awaits jobless claims and other economic releases.
The elections are less than just three weeks away, and Treasury Secretary Steven Mnuchin seems frustrated at the little progress in the negotiations. Unlike other Republicans, the secretary was in favour of negotiating a larger relief package. The democrats are enjoying a comfortable lead in the opinion polls ahead of the November 3 elections. Hence, the chances of Democrats ceding ground regarding the stimulus size are remote.
Biden might be readying for a comfortable win while the Senate elections might see a less one-sided result. The markets will be pumped up if the same party wins both races.
US jobless claims are expected to continue their fall to 800,000, while the Philly Fed Manufacturing Index might also be in positive territory.
GBP/USD is above 1.30 as the UK stopped-short of leaving the negotiations. Nevertheless, the EU leaders are expected to express displeasure at the lack of progress in the exit deal discussions.
The Eurozone is witnessing more restrictions on account of the rise in the pandemic cases. France imposed night-curfew in major cities, and Germany is also expecting more restrictions.
Christine Lagarde, President of the European Central Bank, might be dovish today in her speech, triggered by coronavirus worries.
AUD/USD fell after Phillip Lowe, Governor of the Reserve Bank of Australia suggested to cut rates to 0.1 Percent and to keep the rates lower for longer. The dovish RBA negated a better than expected jobs report from Australia.