Markets buoyed by stimulus prospects, focus is on Brexit summit and BoC

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This is what you need to know to trade today Wednesday, December 9:

Market sentiment is optimistic and the safe-haven US dollar has moved lower amid hopes that the US Congress will agree on a fiscal stimulus program. British Prime Minister Boris Johnson travels to Brussels for the latest Brexit talks, as the BoC is expected to leave rates unchanged and news about vaccines come into play.

US fiscal stimulus: Senate Majority Leader Mitch McConnell, a Republican, appears ready to agree to a stimulus bill worth about $ 900 billion. While the Republican Party is still at odds with Democrats on the details, investors hope a deal can be reached before Biden’s inauguration.

American politics: The Supreme Court rejected an attempt by outgoing President Donald Trump in an attempt to overturn the Pennsylvania results, the latest in a series of coups. Markets await the January runoff in Georgia, which will determine Senate control. The latest polls point to melee races.

Cases of coronavirus, hospitalizations and deaths have reached new highs in the US and states are considering additional restrictions.

Germany continues to report high COVID-19 numbers and is planning new restrictions. EUR / USD is stabilizing above 1.21. Tensions are rising ahead of the European Central Bank’s decision on Thursday.

Brexi; UK Prime Minister Boris Johnson travels to Brussels to dine with European Commission President Ursula von der Leyen in an attempt to break out of the stalemate in the talks. On Wednesday, both sides reached settlements in Northern Ireland, the last piece of the 2019 Withdrawal Agreement. While the minor agreement raised hopes for a breakthrough, EU chief negotiator Michel Barnier said the chances of a trade agreement are “very rare”. However, GBP / USD has rallied towards 1.34.

Coronavirus 1 vaccine: The UK administered the first injections of the Pfizer / BioNTech inoculation on Tuesday. More important to markets, the US Food and Drug Administration released a promising evaluation of the vaccine ahead of likely approval Thursday. The FDA seal will likely trigger more green lights in other countries.

Coronavirus 2 vaccine: A revised AstraZeneca / University of Oxford immunization analysis confirms an efficacy rate of around 70%, but leaves some questions open about protecting older people.

It is expected that the Bank of Canada leave the interest rate unchanged in your last decision of the year and comment on the economy, after Canadian employment figures beat estimates but growth came in below them.

See: Bank of Canada Preview: Why the BoC Could Send the CAD Higher, Despite Bearish Data

The oro it has been consolidating its gains around $ 1,860, supported by hopes of stimulus. Crude oil WTI It has not been able to maintain its gains related to OPEC + and is trading around $ 45.

The cryptocurrencies They are on the defensive, with Bitcoin falling to around $ 18,200. Ethereum and XRP are also well below their highs.

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