For the day ahead on Tuesday October 5th, there is an RBA rate decision, speeches from Powell and Lagarde as well as Trump's health and new lockdown restrictions.
RBA interest rate decision . A dovish pivot is being priced in from the RBA that opens the door to further easing at one of the coming meetings. That probably means another rate cut to 0.1% and more asset purchases.
Fed Chair Powell speaks tomorrow before minutes are released on Wednesday. Markets have been inundated with comments from Powell of late so its unlikely to be a big mover- especially with focus still on the fiscal side.
ECB President Lagarde will probably want to play down reports of a split of opinion in the ECB before the release of minutes from the last meeting on Thursday.
Trump’s health will be an ongoing source of uncertainty, though less so if he is released from hospital early. Doctors were debating his release Monday morning despite putting him on an unproven steroid drug usually reserved for severe cases.
New lockdown restrictions in New York and Paris were put to one side on Monday but could begin to hit market sentiment in the context of 35 million global cases.
Read our next article: Top 7 Tweets of the day - 5th of October 2020
