As we head into the final period of this week, what do we need to know?
The PCE data was in line with expectations, so it didn't have much of an impact. The first debate of the US election dominated the headlines today, and it was a disaster for Biden, and the Democrats are even considering replacing Biden. We need to understand the potential impact of this on the market. On the one hand, if the Democratic Party has a new candidate, it means that there are new players in the game, which will definitely affect the market. On the other hand, as for Comrade Trump, his chances of winning have greatly increased at present, but he has put forward some policy views that have a huge impact on the market, such as depriving the Federal Reserve of its independence and imposing a 10% tariff on all goods entering the United States, which will lead to inflation. So today in the Asian and European sessions, we saw the market trying to understand these impacts and consequences, and I think the market may need some time because this will have a huge impact on the US dollar and US bonds, and thus on gold. This will be an important theme for the market in the coming months.
In addition, we need to be alert in the last few hours. As I said in the morning, today is the end of the quarter, and some funds are rebalancing. There will be the French election next weekend, and traders will try to sort out their positions before then. The far right is still leading in the polls and is expected to perform well. So there may be more chaotic trends before the close.
Bonus 3 of the previous article is that I released two models on TradingView, and I also successfully took advantage of the surge in Sol yesterday. Interested fans can check it out. If you trade tonight, I wish you good luck and hope to see you next week!
