Biden And Yellen To Inject Stimulus Relief?

Greenback Unable to Hang On

The US index retraced its recent gains as it closed 0.42% lower yesterday.

Sentiment shifted on the back of consumer confidence falling more than expected in November. This came amid a widespread resurgence in new Covid-19 infections and business restrictions.

Economic relief seems to be on the back burner. This is because there are no expectations of another rescue package until after President-elect Joe Biden is sworn into office on January the 20th.

Euro Eyes 1.19

The euro edged 0.42% higher on Tuesday as it continued to bang on the 1.19 ceiling.

German GDP rose by 8.5% in the third quarter of 2020. And it seems likely that the ECB will be increasing policy stimulus at next month’s meeting.

However, with recent reports of the European bloc dropping back into a severe decline, will the EURUSD be able to maintain the rally?

Sterling Progresses Again

The pound advanced for a seventh trading session out of eight as it closed 0.25% higher.

The market remains confident about a Brexit deal as representatives from the UK and the EU remain in negotiations.

Talks are aimed at bringing positions closer in controversial issues, with less than six weeks to the post-Brexit transition period ends.

Attention turns to Chancellor Sunak’s mini-budget later today, as he stated that his spending review will not lead to further austerity.

Dow Makes History

The main US indices all ended yesterday’s session higher. However, it was the Dow that stood out as it closed at record levels.

All three of the main indices rose by almost 2% amid hopes of a strong economic recovery and the end of political uncertainty.

Among the stock leaders were Apple and Microsoft that advanced 1.2% and 1.8% respectively. Tesla also set all-time highs and took the electric carmaker’s market value above $500bn.

Risk Appetite Shifts as Gold Drifts

Gold plunged 1.7% lower on Tuesday as the yellow metal fell further towards the $1800 handle.

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