Stock and gold advance, the safe-haven dollar declines on rising optimism that US lawmakers will agree to a covid stimulus package for the economy. US elections, Brexit talks, and rising eurozone COVID-19 cases are all eyed.
Fiscal stimulus: House Speaker Nancy Pelosi sounded more upbeat over progress in fiscal stimulus talks with Treasury Secretary Steven Mnuchin. Whilst there are still differences , Pelosi allowed her soft deadline to be passed, both sides are reportedly drafting a bill.
Senate Republicans could still oppose the agreement with Democrats as it would split the party and delay the Supreme Court nomination.
Elections: President Trump fared better in opinion polls, with the national polls showing the gap closing and state polls indicating a tighter race in several key battleground states. Even so, the closely followed FiveThirtyEight and The Economist indicate, on average, 90% for Joe Biden to become president.
Trump and Biden will face each other again in a live televised debate early on Thursday. Fresh polls are eyed.
EUR/USD has pushed beyond 1.1850 a monthly high as investors look past rising coronavirus cases in the old continent and tighter restrictions. Christine Lagarde, President of the European Central Bank, is due to speak later, in addition to several colleagues.
Brexit: The EU and the UK are staying in contact but haven’t restarted face-to-face talks. According to Bloomberg, Brussels wants to give Prime Minister Boris Johnson the appearance of winning whilst refusing to give up ground.
The UK Consumer Price Index printed at +0.5% YoY September, as expected. On Tuesday, Bank of England member Gertjan Vlieghe suggested that the BOE is considering more stimulus. GBP/USD is trading close to 1.30.
Canada is due to release inflation and Retail Sales data later. USD/CAD dropped below 1.31 on USDs weakness. The loonie has also benefited from rising oil prices, with WTI surpassing the $41 level.