Concerns about foreign intervention in elections in the United States have weighed on the market mood. This could allow the dollar to recover after Wednesday's decline. Talks on an intense Brexit continue in London and it will be done by several parties.
This situation can increase the pound sterling currency. Tensions also continue to rise ahead of the presidential debate that will be held soon. The FBI announced that Russia and Iran had obtained U.S. voter registration files. They are sent threats to voters.
Meanwhile, officials say that election infrastructure remains solid. There are concerns about the further complications of the US election and the growing likelihood of disputes having an adverse impact. That has pushed stocks and gold lower.
The Last Debate will be Highlighted
The dollar is still consolidating its weakness. President Donald Trump and his challenger Joe Biden will meet in the final debate on Thursday night. Recent national and state polls show stiff competition between these two candidates.
But candidates from the Democratic Party remain in the lead or ahead. If counted, the election will be held in about 12 days. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have reported additional progress in their second talks on U.S. stimulus.
They say a possible deal for stimulus is highly likely to happen. On the other hand, Senate Republicans seem to be pushing for the legislation to be passed only after the election. Investors remain hopeful for a deal in its current form, or a larger package.
It is especially true if Democrats win full control in the next election. Meanwhile, EU Chief Negotiator Michel Barnier led a large delegation to London. This condition is to continue and intensify the talks on Brexit.
Boris Johnson backs Talks
British Prime Minister Boris Johnson returned to the negotiating table five days after leaving. It is good news for some parties. His return now aims to reach an agreement by mid-November. GBP/USD surged on Wednesday and has maintained its gains.
Cases of the eurozone coronavirus are reportedly on the rise. Now, there are more authorities imposing restrictions to spread the disease. Infections in Spain even surpassed the figure of one million. The figure may still increase in the coming days and weeks.
Meanwhile, German Health Minister Jens Spahn was also declared positive for the virus. This indicates the case of this virus still exists. European Central Bank member Fabio Panetta is also likely to comment on the economic implications in his speech on Thursday.
Oil Prices Fall Again
Oil prices fell in early trading on Thursday. This situation adds to last night's big losses. This comes after a buildup of U.S. gasoline inventories that showed a deteriorating outlook for fuel demand. The situation is being treated by a soaring coronavirus in North America and Europe.
U.S. West Texas Intermediate (WTI) crude futures were reported to be down 27 cents, or as much as 0.7%. This means it will cost $39.76 a barrel. Earlier, it slipped as much as 4% on Wednesday. Brent crude also declined in the market.
Brent crude (LCOc1) futures fell as much as 21 cents or as much as 0.5%. The commodity's price rose to $41.52 a barrel after sliding 3.3% on Wednesday. The US gasoline stockpiles rose 1.9 million barrels. This data was submitted by the Energy Information Agency (EIA).
Supply and Demand on the Market
The overall product supplied, representing demand, averaged 18.3 million barrels per day in four weeks. This number is from October 16. According to the EIA, the figure was down by 13% from the same period a year earlier. The latest EIA report is also highlighted.
The report showed an unexpected increase in gasoline inventories. This coincided with a decrease in gasoline production due to refinery outage. The implication is that gasoline demand is quite weak. This was conveyed by Lachlan Shaw, head of commodities research at National Australia Bank.