Forex Today: Last full week of 2020 kicks off with Brexit and US stimulus optimism

Yohay Elam FXStreet

Here is what you need to know on Monday, December 14:

Markets are moving higher as Brexit and US stimulus talks continue ahead of the first vaccinations against COVID-19 in the US.

US Stimulus: A bipartisan group of lawmakers is set to present two separate bills, one including liability protection for companies and the other without, a move meant to break stalled negotiations. Gold has failed to rise in response to the news.

Brexit: UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to extend talks beyond the deadline and "go the extra mile." According to reports, Britain has put forward a new proposal for a Level-Playing Field (LFP) one of the most contentious topics. GBP/USD has surged above 1.33 in response to ongoing deliberations.

Germany has announced severe restrictions ahead of the Christmas holidays as its caseload remains high. Previously, France extended its nationwide lockdown. Nevertheless, EUR/USD is moving higher amid the dual set of talks.

The US begins vaccinating its population on Monday. The White House considered vaccinating outgoing President Donald Trump and his staff in the first round and later backed down. The Electoral College is set to ratify President-elect Joe Biden's victory during the day, following the Supreme Court's rejection on Friday of yet another attempt by Trump to overturn the elections.

AUD/USD was temporarily hit by a drop in iron ore prices following comments from China's Iron and Steel Association saying the metal's price has "diverged from fundamentals.

Cryptocurrencies are consolidating fresh gains, with Bitcoin changing hands above $19,000.

Later in the week, the Federal Reserve and the Bank of England announce their final decisions for 2020. US Retail Sales are also eyed.

More Where next for the Fed, fiscal stimulus and Trump

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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