Last weeks strong global equity moves was supported this week as more positive vaccine news helped boost risk assets higher. News that Moderna's vaccine was 95% effective and was easier to transport helped support the case for buyers in global stocks. The market is currently balancing long term hopes of a return to normality next year vs a short term dip in economic recovery over current rising COVID-19 cases. In other news expectations of a Brexit deal supported the GBP and helped push the GBPUSD further towards August highs at 1.3500. Will a deal finally be reached next week or is this another false start for discussions?

Other key events from the past week

Vaccine news: Moderna's vaccine news, November 16. A longer shelf life for its COVID-19 vaccine & only the need for refrigeration vs Pfizer's need for -70C storage was good news for a global recovery in 2021. Some investors bought heavily into cyclical stocks on the growing hopes of a normal 2021.

USD: Retail sales disappoint, November 17. The US consumer makes up around 70% of the United States GDP so a weaker than expected retail sales reading this week helped send the dollar lower. Retail sales only rose +0.3% last month vs the Reuters expected poll of +0.5%.

Brexit: GBP gains on anticipation of deal, November 17. UK Chief Brexit negotiator told UK PM Johnson to expect a Brussels trade agreement early next week. Will a deal finally be delivered? Register for our Wednesday workshop to find out how you can develop a trading plan for the week ahead.

Key events for the coming week

EUR: Key PMI data. November 23. The eurozone starts a quiet economic data week of with PMI data out of France and Germany. Expectations are that the ECB will add further stimulus packages and a miss in PMI's here will add to selling pressure to the euro heading into the ECB's next rate meeting.

USD: FOMC minutes, November 25. In a light calendar week the FOMC minutes will be viewed for clues as to the Federal Reserve's next policy move. No surprises are expected and you can read the last FOMC statement here.

SP500: Strong period for US stocks, November 20-Dec 06. The S&P500 has gained value in eight of the last ten years from Nov 21 through to Dec 04. Is this a great time for dips be bought next week on vaccine optimism? Or is 2020 a terrible year to consider seasonal trades?

Learn more about HYCM

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Editors’ Picks

EUR/USD recovers toward 1.1350 on modest dollar weakness

EUR/USD edged higher in the early American session and managed to erase its daily losses. Ahead of Fed Chair Powell's testimony, the pair is closing in on 1.1350. Earlier in the session, the data from the US showed that employment in the private sector rose by 534,000 in April, surpassing the market expectation of 525,000. 


GBP/USD extends sideways grind around 1.3300 ahead of Powell's testimony

GBP/USD continues to move sideways around the 1.3300 handle on Wednesday after the data from the US failed to trigger a significant market reaction. The ADP Employment Change arrived at +534K in November, compared to the market expectation of 525,000. FOMC Chairman Powell will testify at 1500 GMT.


Gold clings to recovery gains near $1,790

Gold gained traction after dropping below $1,780 in the early European session and climbed toward $1,790. Ahead of FOMC Chairman, the 10-year US Treasury bond yield is up more than 1% on the day, limiting gold's upside for the time being.

Gold News

Altcoins recover as Bitcoin chops

BTC price is consolidating while it tries to move higher, but Ethereum price seems to be enjoying a full-fledged rally as it comes closer to setting up new highs. Ripple price, on the other hand, is struggling to find bullish momentum.

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