Here is what you need to know on Wednesday, October 21:

Stock and gold rise, the safe-haven dollar falls on hopes that US lawmakers strike a relief package for the economy. Tensions toward the elections, Brexit talks, and rising eurozone COVID-19 cases are all eyed. 

Fiscal stimulus: House Speaker Nancy Pelosi reported progress in talks with Treasury Secretary Steven Mnuchin over a new relief package. While differences remain, Eplosi let her deadline lapse and both sides are reportedly drafting a bill. 

On the other hand, the New York Times reports that Senate Republicans remain opposed to pushing through an agreement with Democrats as it would split the party and would serve to delay the Supreme Court nomination.

Elections: President Donald Trump enjoyed a relatively better day in opinion polls, with national surveys showing a minor narrowing and state polls pointing to tighter races in several battleground states. Nevertheless, FiveThirtyEight and The Economist point, on average, 90% for Joe Biden to become president. 

Trump and Biden are set to clash in a televised debate early on Thursday and continue campaigning ahead of the event. Fresh polls are eyed.

EUR/USD has been advancing above 1.1850, the highest in a month. Investors are shrugging off rising coronavirus cases in the old continent which have prompted restrictions. Christine Lagarde, President of the European Central Bank, is set to speak later on along with several colleagues. 

Brexit: The EU and the UK remain in touch but have yet to resume face-to-face negotiations. According to Bloomberg, Brussels wants to give Prime Minister Boris Johnson the optics of a win, while refusing to cede ground. 

The UK Consumer Price Index came out at 0.5% yearly in September, as expected. On Tuesday, Bank of England member Gertjan Vlieghe said the BOE is leaning toward more stimulus. GBP/USD is trading close to 1.30.

Canada releases inflation and Retail Sales figures later in the day. USD/CAD has dipped below 1.31 amid the greenback’s weakness. The loonie has also benefited from a moderate increase in oil prices, with WTI surpassing the $41 level. 

Cryptocurrencies continue their uptrend, with Bitcoin surpassing the $12,000 level seen as resistance. 

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