Forex Today: Vaccine deployments, Brexit continue to rule the sentiment

Pablo Piovano FXStreet

Here is what you need to know on Tuesday, December 8:

Stocks and currencies ended Monday’s session on a mixed bag amidst fresh market chatter on another US stimulus package and alternating headlines surrounding the Brexit negotiations.

On that side of the channel, the UK will start its vaccination campaign today and several countries are expected to follow suit later in the month and in early 2021. On the same front, the pandemic continues its relentless march, although market participants (and global assets) keep looking past the coronavirus crisis and anticipate a strong recovery next year.

The ZEW survey will shed further details on the economic sentiment in both Germany and the broader Euroland later today, while another revision of the Q3 GDP figures in the bloc will also be in the limelight.

EUR/USD, in the meantime, is expected to move into a cautious stance in the next hours ahead of the key ECB event on Thursday. The dollar remains immersed into the bearish territory in spite of occasional bullish attempts, while the quid keeps suffering the Brexit limbo.

In the commodity space, the barrel of the European reference Brent crude eases further from recent tops near the $50.00 mark as traders continue to digest the recent OPEC+ decision to gradually increase its oil output starting in January.

Gold extends the bounce off last week’s lows in the $1,760 area and looks to be headed towards the $1,900 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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