On the radar this week: U.S. political drama, rising COVID-19 cases - FXTM
(Kitco News) With just eight days remaining until the U.S. election, markets are carefully watching the political headlines and rising coronavirus cases, writes FXTM chief market strategist Hussein Sayed. "U.S. political drama will continue to be the major market-moving factor for the upcoming week and probably beyond … while coronavirus infections hit records in the U.S. and several European countries," Sayed says. Investors should be ready for more volatility across asset classes as markets approach November 3, especially if U.S. President Donald Trump manages to tighten the race. "So far, betting odds continue to show Biden in the lead with a 66% chance of winning the election, according to RealClearPolitics. However, chances of a blue wave have dropped to 50%, suggesting a more volatile market reaction to the result on November 3," Sayed adds. Investors are also eyeing a number of monetary policy meetings this week, including the Bank of Canada on Wednesday and the European Central Bank and the Bank of Japan on Thursday.