GBP/USD: Deal Or No Deal? Boxed-In Boris May Unleash A Rally

A speech from Andy Haldane, the BOE’s Chief Economist, and an economic update from the government may also move markets. However, the bank and Westminster already delivered the coordinated boost early in the month – announcing additional bond-buying and an extension of the furlough scheme, respectively. Both institutions will probably wait until making new steps.

Here is the list of UK events from the FXStreet calendar:

US events: Coronavirus fears and vaccine Thanksgiving

How many Americans will see their families this Thanksgiving? A personal question for many could turn into an influential macroeconomic one for markets. On the one hand, travel triggers spending, especially on gifts. On the other hand, it could contribute to spreading covid.

Coronavirus statistics,  and ensuing restrictionswill likely stand out in America’s short trading week. After surpassing the 250,000 mortality mark, investors could focus on daily deaths, with the grim prospect to surpass the peak in the spring.

Full lockdowns are also on the cards. Governors’ decisions in the four largest states: California, Texas, Florida and New York, are set to have the most significant impact on markets.

The political front has been relatively quiet, but markets would applaud any Republican move toward accepting President-elect Joe Biden’s victory. Outgoing President Donald Trump is set to continue fighting for his political future. Still, any acknowledgment from Senate Majority Leader Mitch McConnell or other senior figures could weigh on the safe-haven dollar.

Democrats and Republicans are gearing up toward Georgia’s runoff elections in January, critical for the upper chamber’s control. Therefore, they are unlikely to compromise on a relief package – a move that would disappoint activists. The covid situation would probably have to worsen before both sides sign off on a stimulus deal further.

More American Politics and the Pandemic: What are the markets thinking?

Economic releases kick off in earnest on Tuesday. The Conference Board’s Consumer Confidence gauge for November is set to decline amid the increase in coronavirus cases’ immense political polarization.

Thursday’s Thanksgiving holiday packs in several events on Wednesday. An update on third-quarter growth is set to confirm a robust expansion after a devastating second quarter. Investors will likely look to the more up-to-date Durable Goods Orders statistic for October, which carries expectations of more modest increases in investment.

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