This is what you need to know to trade today Wednesday, December 16:
The dollar remains on the defensive after a happy Tuesday in the markets. The upcoming approval of Moderna’s vaccine, progress on Brexit, and the call from Republicans to seal a stimulus have resulted in a sentiment of risk appetite. Investors will focus on changes to the Federal Reserve’s bond purchase program in its last decision of the year.
American stimulus: Senate Majority Leader Mitch McConnell noted progress in stimulus talks with Democrats and urged all lawmakers to rally around a deal. The powerful politician had been reluctant to back a deal, and the new proposals have yet to get the go-ahead from House Speaker Nancy Pelosi. Investors expect another aid package when President-elect Joe Biden walks into office. McConnell also broke his silence on the election and congratulated Biden, easing some political pressure.
The Federal Reserve is ready to announce its final decision of the year and markets will turn their attention to changes in their bond buying program amid the recent surge in the virus and the economic slowdown. However, the central bank can choose to wait until the next meeting. Particular attention will be paid to new economic forecasts, especially growth and employment.
See: Federal Reserve Preview: How a Dose of Holiday Economic Cheer Could Ruin Market Sentiment
Gold clings to its profits above $ 1,850 in response to news of fiscal stimulus and hopes for monetary stimulus.
Before the Fed, US Retail Sales Figures for November markets are expected to shake as consumption is a critical component in the world’s largest economy. Top sales are forecast to fall while the Control Group will increase.
See: November US Retail Sales Preview: If Consumer Spending Fizzles Out?
Other data to take into account are the Markit PMI Preliminary Purchasing Managers Indices for November, a forward-looking indicator of the world’s largest economy.
Intense Brexit talks continue in Brussels and the negotiators are calm, a sign of progress. News from London suggests substantial progress on the level playing field, while the fate of the fishing remains contentious. At some point, rumors of an imminent deal surfaced, but they didn’t materialize. GBP / USD keeps its gains.
UK employment figures were mixed, with a low unemployment rate but a substantial jump in jobless claims. Inflation did not meet expectations with an annual increase of 0.3% compared to the 0.6% expected.
Vaccine optimism: The US Food and Drug Administration released a report confirming the efficacy and safety of Moderna’s vaccine. The publication serves as the first stage before authorization, which must take place towards the end of the week. And the UK is already administering the Pfizer / BioNTech vaccine and the European regulator has pushed the approval of this vaccine to December 21.
Eurozone: Markit’s preliminary PMIs for November will be released on Wednesday and will likely reflect a continued deterioration in sentiment amid the winter wave of covid. Germany enters a strict national lockdown on Wednesday and other countries are also imposing new limits or considering them before Christmas. EUR / USD is torn between the optimism of the market and the sad reality on the ground.
He crude petróleo WTI it maintains its earnings above $ 47 amid market optimism and ahead of inventory data later in the day.
The cryptocurrencies they are rising once again, with Bitcoin advancing above $ 19,000.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
