US Open – A busy week to come

US remains core focus this week

A relatively slow start to the week, with the data calendar looking thin and the US bank holiday likely contributing to the lack of activity.

It’s also worth noting that there’s a lot going on the rest of the week so we may just be seeing the usual calm before the storm scenario unfolding. The election is only a few weeks away now and with Trump having been cleared of Covid, the campaigning will be ramped up, as well as everything that comes with it. Trump’s Twitter feed will be one to watch.

The polls aren’t looking good for Trump which may work out favourably for the markets if the gap continues to widen as it has. The last thing markets want is a disputed election result that drags out the process and creates enormous uncertainty.

Earnings season kicks off tomorrow which will add an additional layer of interest. The third quarter will obviously have been better for business as they emerged from lockdowns but with restrictions around the world becoming tighter and the winter upon us, I doubt they’ll be full of optimism just yet. Fortunately for them, other things may be a bit of a distraction right now.

Sterling traders very calm ahead of Brexit “deadline”

Here in the UK, Brexit is front and centre as London and Brussels lock horns once again.

This weeks “deadline” is fast approaching and the same old issues are still holding up a deal. It’s generally accepted now that the “real deadline” is the end of the month and that a broad outline of a deal is wanted to present at the EU summit. Even that may be too optimistic.

The pound is being remarkably well behaved under the circumstances. Whether that’s complacency with no-deal remaining a very real risk, or just an accurate reflection of the chances of a deal is debateable.

But the longer a deal takes to be thrashed out, the more nervy traders may become. Although the failure to secure a deal at this point would be a huge failure, particularly under the circumstances.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam