Following the bond sell off’s last week after the Chancellor’s Autumn budget, the Pound has managed to steady itself going into the new week, as it seems Gilt investors are convinced of the Government’s spending plans- how this plays out over coming months is still unknown but for now it looks like the dust has settled from a bonds perspective- going into this week we have a few major events which should give us a relatively volatile week on the market.
Without question- the most important event this week is the U.S. presidential election on Tuesday (Nov 5th)- it is unlikely we will have a result that day so we will be looking for a result on this on Wednesday, right now polls are still showing a Trump lead, but as we all know, these opinion polls don’t count for much when the real one is a matter of days away, the general consensus is a Trump win is positive for the Dollar and a Harris win is negative for the Dollar- I am personally unsure if this is what the market will do, either way be prepared for a lot of volatility over the coming days as there wont be a decisive mood on the markets, both FX and stocks until the final result is in.
