Second US Election Debate in Focus, GBP the Main G10 Winner

Equities slid on Wednesday and during the Asian session Thursday, with daily coronavirus infections hitting a new record high yesterday, and with no consensus over a fresh stimulus package in the US yet. Today, the main event is likely to be the 2 nd debate between US President Trump and his rival Joe Biden. In the FX world, the pound was the main gainer among the G10s, rallying following upbeat Brexit headlines.

Investors Lock Gaze on the 2ndTrump-Biden Debate

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Nasdaq 100 — Technical Outlook

From around October 13 th, Nasdaq 100 is seen to be forming lower highs, while trading below a short-term downside line taken from the high of that day. However, recently, the index seems to be struggling to go for a lower low, as the 11600 hurdle continues to hold. Although there is a good chance for the index to move further south, in order to get a bit more comfortable with that idea, we would prefer to wait for a break below that 11600 zone first, hence our cautiously-bearish approach for now.

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GBP Rallies on Positive Brexit Headlines

Flying from the US to the UK, the British pound was yesterday’s main gainer among the G10 currencies, coming under strong buying interest after a Bloomberg report noted that Brexit negotiations are set to restart and that the two sides will try to reach consensus by mid-November. EU Brexit negotiator Barnier’s remarks that a deal is still possible, and the rejection in UK’s parliament upper house of the draft legislation that would give the British government the right to override parts of the Withdrawal Agreement, may have also helped the pound to march higher.

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GBP/NZD — Technical Outlook

GBP/NZD continues to slowly grind higher, while balancing above a short-term tentative upside support line taken from the low of October 14 th. At the time of writing, the rate is trading below yesterday’s high, at 1.9768. As long as the pair stays above that upside line, we will continue aiming slightly higher.

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As for the Rest of Today’s Events

Besides the Trump-Biden debate, the only worth mentioning events on the economic agenda are the US existing home sales for September, and the initial jobless claims for last week. Existing home sales are expected to have increased somewhat, while initial jobless claims are forecast to have declined to 860k from 898k the week before.

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