Support
Elections week
Markets remain cautious ahead of the election results and the FOMC meeting, which is expected to result in a rate cut
NFP Data: Payrolls at 12K, well below expectations; reinforces Fed rate cut likelihood.
Unemployment & Wages: Steady at 4.1%, wages up 0.4% month-on-month.
Chinese Yuan: Fell 0.4% as markets focus on NPC meeting, with potential $1.4 trillion debt approval.
Elections
Election day on Tuesday marks a closely contested race for the White House between Republican Donald Trump and Democrat Kamala Harris, with early voting already well underway.
Traders are primarily hoping for a clear outcome, as a contested election and prolonged uncertainty pose a notable risk to markets.
While only seven states are considered highly competitive, a Saturday poll showed Harris unexpectedly leading in Iowa state Trump won comfortably in the past two elections though another poll indicated she was trailing there.
NFP data
The dollar retreats sharply after weaker than expected labor data and ahead of the US elections results on November 5.
Last week, non-farm payrolls came in at 12K, far below market expectations of 106K and the previous reading of 223K.
The weak U.S. jobs report reinforced the notion that the Federal Reserve has room to cut rates, with a 99.9% probability of a 25-basis point rate cut this month.
The lower payroll figure for October was attributed to disruptions caused by hurricanes and significant labor strikes.
Unemployment held steady at 4.1%, in line with expectations, while wages increased by 0.4% on a month-over-month basis.
Chinese Yuan
The Chinese yuan's USDCNY pair dropped 0.4% from its near two-month highs as attention shifted to a meeting of the Standing Committee of the National People’s Congress (NPC) starting Monday.
The NPC is widely anticipated to unveil plans for increased fiscal spending, with recent reports indicating that the body may approve up to $1.4 trillion in additional debt over the coming years.
