US markets continued to post gains, despite the lack of fiscal stimulus from Congress. President Trump had abandoned plans for a massive new fiscal stimulus/bailout package, but had left the door open for individual bills, to assist business and the people. House Leader Pelosi ruled out any further aid for desperate airlines, or others, without the massive appropriations satisfying her wish list. Markets continued to thrive, supported by the Fed’s monetary policy, although comments from the Fed indicate the dire need of fiscal stimulus. The President has indicated it will happen, after the November 3rd election, which now obsesses markets.
The EUR traded 1.1750, while the GBP moved up to 1.2930, still locked in non-productive trade talks with the EU. The Vice Presidential Debate overnight was a clear win for VP Pence and reassured markets. The trade exposed commodity currencies remain extremely vulnerable to global markets and have been confirming that, of late. The AUD trades above 0.7150, despite the massive Keynesian budget spend, while the NZD struggled below 0.6600. NZ Business Confidence will confirm the lack thereof, although will probably be overlooked by the looming election.
The virus continues to shake market confidence but the dramatic diagnosis and recovery of President Trump, puts everything into perspective.