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06.10.2020 12:11 PM
A new package of measures to support the US economy is more important than Trump's health?

The sharp drop in the stock market is caused by the news about the illness of the US President and first lady. The Dow Jones Industrial Average immediately reacted to this message and fell by 400 points. However, it soon became clear that investors turned a blind eye to Trump's malaise. As a result, the stock market soon settled down. Stock indices are still expected to grow.

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News about the new package of measures to support the US economy, apparently, play a very important role for market players, and in some ways their significance even prevails over information about the health of the US President. Investors are monitoring the situation regarding the adoption of the agreement, which should affect the further development of the US economy and, consequently, the US currency. House Speaker Nancy Pelosi hastened to say that a new package of measures should be expected after the presidential election.

The US non-agricultural employment report for September did not meet investors' expectations. In total, 661 thousand jobs were created in the country, and a month earlier – 1.371 million. The unemployment rate fell from 8.4% to 7.9%, while investors predicted a drop to 8.2%. The USD/JPY pair declined by several points and the EUR/USD pair did not hold on to the reached position for a long time although it rose above the mark of 1.1730.

The leader of Friday's trading was the pound. On Friday, the Spanish government introduced quarantine measures in Madrid. The new restrictions will also apply to Paris. Policies in these countries restrict the operation of public places, bars and restaurants, gyms, etc. This situation paints a bleak picture of the prospects for the recovery of the European economy. If Europe does not stop the second wave of coronavirus, the state of the economy in the Eurozone will deteriorate sharply. For most of the past week, the EUR/USD pair has been trading above 1.17, however, analysts predict a correction.

The Australian and New Zealand dollars showed a clear decline after their multi-day rally. The position of the Canadian dollar, on the contrary, has not changed much.

Andreeva Natalya,
Analytical expert of InstaForex
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