The Demand for Risky Assets Is Still Low. Traders Expect ECB Meeting

The US dollar continues to strengthen against a basket of world currencies. Yesterday, the dollar index (#DX) has updated local highs and closed in the green zone (+0.52%). The demand for risky assets is still low amid the rapid spread of the COVID-19 epidemic. At the moment, the number of people infected in the world has approached 44.5 million. Germany and France have introduced strict quarantine measures again due to the second wave of COVID-19.

The Central Banks of Canada and Japan, as expected, left the key marks of monetary policy unchanged. Today, the ECB meeting will be the key event. Experts agree that the regulator will keep interest rates at the same level. Central Bank officials can signal additional incentive measures to combat the impact of COVID-19. We recommend paying attention to the comments by the ECB representatives. Traders will also assess a number of important US economic releases.

Oil quotes continue to show a negative trend. At the moment, futures for the WTI crude oil are testing the $35.90 mark per barrel.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-3.42%), #DIA (-3.34%), #QQQ (-3.90%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.77-0.78%.

• - Report on US GDP at 14:30 (GMT+2:00);
• - Initial jobless claims in the US at 14:30 (GMT+2:00);
• - ECB interest rate decision at 14:45 (GMT+2:00);
• - Pending home sales at 16:00 (GMT+2:00).

by JustMarkets, 2020.10.29

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.