Forex Today: Markets cheers hopes for quick vaccination, cryptocurrencies rally, PMIs eyed

Yohay Elam FXStreet

Here is what you need to know on Monday, November 23:

Hopes for the distribution of coronavirus vaccines are boosting markets and weighing on the dollar. The pound stands out with a breakout, also amid optimism around Brexit, while cryptocurrencies march forward. Markit's PMIs and COVID-19 developments are eyed.

The Group of 20 (G-29 leaders) committed to rapidly providing immunization to the world. The US may begin inoculating citizens in mid-December, the UK could start as early as next week and Spain announced an ambitious plan to distribute the vaccine.

GBP/USD has been standing out with a break above 1.33 also due to reports in the British press that a Brexit accord is imminent and "95% done." Negotiations resume on Monday. Chancellor of the Exchequer Rishi Sunak has pledged to refrain from austerity measures in the next budget.

Sterling's only downer is the prospect of stricter localized measures once the nationwide lockdown expires on December 2. Markit's preliminary Purchasing Managers' Indexes for November are set to show moderate drops.

US politics: President Donald Trump has failed to make headway in his attempt to overturn the elections. Georgia certified the results while a Republican judge in Pennsylvania threw out a lawsuit. Additional Republican politicians are calling on Trump to concede and assure a smooth transition.

The president is reportedly preparing sanctions on several Chinese companies before he leaves office. President-elect Joe Biden is set to announce his pick for Treasury Secretary during the week. Markit's PMIs are projected to slide from the highs but remain in growth territory.

See Markit's US PMI November Preview: A case of the nerves

US COVID-19 hospitalizations have hit a new peak above 83,000 in the US and Los Angeles County is set to slap additional restrictions. Americans are gearing up for Thanksgiving later in the week.

Eurozone PMIs are set to show a drop in activity due to lockdowns, with a significant blow to the services sector. EUR/USD has been making its way toward 1.19.

See Eurozone PMIs Preview: Three reasons why expectations are too low, EUR/USD may rise

Cryptocurrencies have been on roll over the weekend, with Ripple's XRP and Ethereum catching up with Bitcoin. The granddaddy of digital coins is trading above $18,000.

Gold is stable above $1,870 and oil prices extend their gradual advance, with WTI nearing $43.

More When the market shivers, the Fed delivers? Where next for markets

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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