Here is what you need to know on Monday, November 16:
The market mood is upbeat ahead of Moderna's vaccine news and the US seems to be moving forward from the elections. A broad Asian trade deal and upbeat Chinse data are also boosting the moment. Brexit talks are reaching another crunch moment while the prime minister is in isolation again.
Coronavirus: Markets are focusing on hopes that Moderna joins Pfizer and announces upbeat results in its COVID-19 vaccine. Optimism is boosting stocks while the dollar is down across the board. AstraZeneca and Johnson&Johnson are also conducting late-stage tests.
Investors seem to be shrugging off concerns about the spread of the disease in the northern hemisphere, and especially in the US. Hospitals in several states have hit capacity.
US politics: President-elect Joe Biden clarified that he does not intend to impose a nationwide lockdown as he prepares to take office. The Democrat is set to announce additional roles in his administration, including Treasury Secretary.
President Donald Trump seemed to recognize Biden's victory before retracting. The recount in Georgia is set to end in the next few days and is unlikely to change the result. Additional senior Republicans have urged him to allow a smoother transition and markets are focused on the runoff races which will determine control of the Senate.
Chinese industrial output beat estimates with an annual increase of 6.9% in October, while Retail Sales disappointed with 4.3%. China, Japan, and 13 other Asia-Pacific countries signed the Regional Comprehensive Economic Partnership (RCEP) which gradually removes trade barriers.
UK: Prime Minister Boris Johnson is isolating after coming in contact with an MP who tested positive for coronavirus. The PM has reported no symptoms and continues working.
Brexit negotiations continue and both sides aim to reach an agreement by Thursday when EU leaders convene. Some expect progress after Biden's election and the departure of Dominic Cummings, a senior adviser to Johnson who was the architect of the Vote Leave campaign.
Christine Lagarde, President of the European Central Bank, and Richard Clarida, Vice-Chair of the Federal Reserve, will speak late in the day.
Gold has been edging higher, but XAU/USD still trades below the $1,900 level. Bitcoin is trading above $16,000 again, resuming its gains after consolidating beforehand.
See What you need to know about the dollar in the post-vaccine announcement world
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.