Markets remain calm on Monday as elections loom

The FX market was with a slight preference of the USD on Monday morning, with the EURUSD pair continuing down toward the 1.16 level.

Earlier in the day, the Chinese manufacturing PMI for October rose to 53.6, from 53.0 in September. However, as the rest of the world is closing down, Chinese factories will face demand issues, even if they will operate at pre-COVID levels.

Later in the day, the same indicator will be released In the EU and USD. We need to note that the manufacturing sector is more resilient to the current crisis, with the most bankruptcies and business closures occurring in the services sector.

The UK became the latest European country to reenter lockdown over the weekend, issuing a one-month stay-at-home policy for all of England to start Thursday, except for schools, universities, and essential stores. Another EU countries are already under lockdown, despite the WHO not recommending this type of response anymore.

Equities were trying to turn positive, and they managed to erase overnight losses. It looks like the last week’s decline won’t continue shortly, as the short-term situation seems way oversold.

Traders are bracing for increased volatility after tomorrow’s elections, and it will be an exciting day(s).

Source: https://www.axiory.com/market-news/markets-remain-calm-on-monday-as-elections-loom