Here is what you need to know on Tuesday, December 29:
US President Donald Trump signed the coronavirus-relief/government funding bill on Sunday. Optimism took over financial boards, and the dollar fell against its major rivals, as Wall Street reached fresh record highs.
Major pairs were confined to familiar levels. Trading was choppy amid diminished volumes. A shortened week includes no relevant macroeconomic releases.
The Sterling Pound was the weakest, as investors start to digest the Brexit deal, published over the weekend. The over 1,200 pages document leaves some major issues still unresolved, weighing on sterling. Regarding a level playing field, the UK is not aligned with EU laws, and the latter may impose tariffs that are still to be defined.
The EU’s 25 member states backed the post-Brexit deal clinched on Christmas Eve, to be “provisionally applied” at the end of the year. The treaty needs now to be approved by the UK parliament, which will discuss it on December 30.
Wall Street pulled off intraday highs, but still managed to close in the green. Commodities, on the other hand, came under selling pressure amid the dollar’s demand. Gold settled around $1,870 a troy ounce, while WTI ended the day just below $ 48.00 a barrel.
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