US Political Uncertainty Affects Markets! Buy the Dip on the Dow Jones? CAD Interest Rate in Focus.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCAD, WTI Crude Oil, USDCHF, and the Dow Jones Industrial Average.

The big news today is that Joe Biden has dropped out of the race for the US presidency and, good or bad, this causes uncertainty and investors hate this.

Therefore, because of this uncertainty, we see further falls in the US Indices.

Looking at the daily chart on the Dow Jones Industrial Average we see just how severe the recent rise and fall of the stock markets is.

But, is it time to buy the dip?

Also, after last week’s weirdly positive news after the Republican National Conference, the markets saw a stronger showing by Trump, making USD stronger.

Watch this as we may see USD moving the other way if Kamala Harris and the Democrats poll stronger.

We see a tug-of-war between USD and CHF so, if we see a rise to this upper trend line we may have a short trade on USDCHF.

CAD is generally weaker and we can see why as the market is pricing in a rate cut on Wednesday, but, we can expect volatility.

For example, if we get a pullback against the trend, we may have opportunities to trade WITH the trend.

Another cause of CAD weakness is the falling price of WTI and, if we believe the MACD indicator, the bearish trend could continue.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.