Today, the focus is on oil gains, the looming second lockdown, and Britains inability to close an agreement with the EU.
The UK Composite Purchasing Manager index will be released. Forecast at 52.9. If the data is lower, the GBP could fall.
Assets to trade: GBP/USD, GBP/AUD
US crude oil inventories will be published. If the new data is higher than 0.890M, oil demand may weaken.
Assets to trade: Brent
The EU and Britain have failed to reach an agreement on the three most persistent sticking points in talks. Affects FTSE 100
Orders for U.S.-made goods increased in September, but gains could be limited as government money for businesses and workers impacted by the COVID-19 pandemic runs out. Affects S&P 500
Oil prices modestly extended their rally on U.S. election day with a 3% gain as financial markets staged a broad recovery, though quelled by COVID concerns. Affects Brent
Sterling falls as Britain heads into a second lockdown. Affects GBP
U.S. stocks jumped on Tuesday as investors bet that on nominee Joe Biden and a swift deal on more fiscal stimulus. Affects the Dow Jones
The anticipation of a second lockdown and further decreased demand for oil could lead to a drop in prices. Quotes have increased over the last few days and could continue if the US crude inventories have decreased.
Brent quotes briefly sank below what was a tentative support level, but a Bullish Engulfing candle has brought it above the line.
A Three White Knights formation has appeared and created a sharp uptrend that could continue to gain momentum.
The chart shows a Three Outside Down formation signaling a continued downtrend.