This is what you need to know to trade today Wednesday, December 2:
The US dollar is rebounding slightly as President-elect Joe Biden wants to keep tariffs on China unchanged at first. The UK’s approval of a coronavirus vaccine helps keep an optimistic mood. ADP employment figures, Fed Chairman testimony, fiscal stimulus and Brexit are in the spotlight.
VaccineThe UK is the first Western country to approve a COVID-19 vaccine, giving the green light to the Pfizer / BioNTech vaccine, which could be administered next week. The news boosts market sentiment.
Chinese-American relationsPresident-elect Joe Biden told the New York Times that he will first conduct a full review and consult with allies before eliminating any tariffs on China. These headlines weighed a bit on the market mood and allowed the dollar to stabilize.
Fiscal stimulus: A bipartisan group of US senators unveiled a package worth $ 908 billion. It is unclear if the outgoing president, Donald Trump, and other politicians back the deal.
Monetary stimulusJerome Powell, Chairman of the Federal Reserve, refrained from hinting at expanding the bank’s bond-buying scheme in his next decision, pledging only to provide support. Powell will continue to testify this Wednesday.
The EUR/USD it bounced back on Tuesday, reaching the highest level since May 2018. The combination of political certainty, a divergence in reactions to monetary stimulus and hopes for vaccines triggered the breakout.
View EUR / USD Forecast: Three Reasons for a Massive Breakout – Important Levels to Watch
The ISM Manufacturero de EE.UU. It marginally missed expectations with 57.5 points, while the employment component fell below 50, indicating a contraction. The ADP jobs report It will be released this Wednesday and provides another clue on Friday’s Non-Farm Payrolls.
The Brexit talks they continue in full force, but the EU denies that they have “entered a tunnel”, a term that refers to intense talks that are off the radar and that are on the way to an agreement. GBP / USD jumped above 1.34 in hopes of a breakthrough and remains above that level.
The AUD/USD it is trading closer to 0.74 amid a weak US dollar and upbeat Australian Gross Domestic Product figures. The economy grew 3.3% in the third quarter, better than expected.
The oro it rallied to $ 1,800 on Tuesday amid hopes for stimulus.
The prices of the Petroleum they continue to fall as OPEC + ministers have yet to reach an agreement on production cuts. WTI is changing hands at about $ 44.
The Canadian dollar It is lagging behind some of its peers due to falling oil prices and disappointing Canadian GDP, which posted an annualized growth of 40.5% in the third quarter.
The cryptocurrencies they are still very volatile. Bitcoin is trading below $ 19,000 after approaching the round 20,000 level on Tuesday.
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