Forex Today: Brexit, lockdowns and a US stimulus package dent the market’s mood
|Here is what you need to know on Monday, December 14:
The dollar posted a modest advance on Friday, favored by the risk-off market’s mood. The dismal sentiment was mostly caused by no progress in Brexit talks. . By the end of the week, UK PM Boris Johnson said that it is “very, very likely” that the UK will have to trade with the EU on WTO terms, while EU’s Ursula Von Der Leyen told EU leaders that a no-deal is the most likely outcome.
UK PM Boris Johnson said that it is “very, very likely” that the UK will have to trade with the EU on WTO terms, while EU’s Ursula Von Der Leyen told EU leaders that a no-deal is the most likely outcome. They set yet another deadline for this Sunday, but after a phone call, they agreed to continue discussions this week ahead of January 1.
The dismal market sentiment was also backed by the lack of progress in a US stimulus package, as the coronavirus keeps taking its toll on the country. Several regions have announced lockdowns to try to contain the spread, with the health system at a brink of collapsing. US President Donald Trump announced that immunization with the Pfizer vaccine will start this Monday.
Germany announced a lockdown until mid-January, closing all non-essential shops and schools, as the number of new contagions and deaths continues to rise.
EUR, AUD, and CAD retreated just modestly from multi-year highs against their American rival, but retain most of their latest gains and their bullish stance. GBP/USD, on the other hand, remains under selling pressure amid Brexit jitters.
Gold closed the week unchanged around $1,840 a troy ounce. Crude oil prices posted modest weekly gains, with WTI settling at $46.50 a barrel.
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