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Written by: Craig Erlam | OANDA Europe
It is often the case that the more hotly anticipated an event is, the more of a disappointment it actually turns out to be; and that could not be more true of last night's Presidential debate.
Those that wanted a policy-light sparring match got exactly what they wanted. Amidst all the interuptions, it's a wonder either candidate managed to say anything of substance at all. Some may argue they didn't.
These events are often overplayed for their importance and that's particularly true in an election year when the undecided vote is so small. It's hard to pick a winner, I think we're all losers as far as that debate is concerned, but Biden went into the debate clearly ahead in the polls and I'd be amazed if last night changed anything. I guess he technically wins by default.
At least now we can all switch our attention to something more important that could be more of a feature in the coming debates, including that of the vice Presidential nominees, two potential future leaders of the free world. The jobs report on Friday will be very interesting, particularly against the backdrop of an exhaustive battle in Congress over the next installment of critical economic aid.
Oil sell-off highlights nervousness in economic outlook
Oil prices are a little lower on Wednesday, holding their losses from Tuesday when sharp selling kicked in around the open on Wall Street. As many have repeatedly warned, the risks have remained to the downside for oil priced, with the economic outlook for the remainder of the year looking murkier by the day.
Yesterday we saw an example of the soft underbelly in the oil price recovery. The nervousness clearly showed as the sell-off gathered speed. We're obviously not heading back to the March/April scenario, OPEC+ will be determined to avoid anything like that, but rallies may continue to look a little weak.
Dollar rebound gives gold bulls hope
The rebound in the dollar this week has been supportive for gold, enabling it to rebound off the $1,850 level and cautiously head back towards $1,900. This is where the real test will come. The dollar testing previous highs from above and gold testing prior major support from below. A break through $1,900 would undoubtedly give gold bulls hope but I'm not convinced. I think there may be a little more to go.
Related: A Strong Start To the Week