This is what you need to know to trade today Tuesday, December 1.
Markets have resumed their gains and the dollar is on the defensive once again as the dust settles from month-end money flows. Optimism about vaccines and Brexit counteracts Powell and Yellen’s concerns about the US economy.
New month: November ended with a drop in equity markets, correcting only a fraction of the sizable gains posted for the month. The US dollar rallied on Monday. Once the dust has settled, the dollar retreats, stocks are bullish and gold also rises towards $ 1,800.
The GBP/USD has resumed its gains within the range, amid optimistic comments about the Brexit negotiations. Negotiators continue talks in London and are scrambling to reach an agreement this week. Fishing and a level playing field remain thorny issues.
The EUR/USD it is trading above 1.1950 after touching the 1.20 level on Monday. Preliminary figures from the November CPI consumer price index for the euro area will show moderate inflation after German statistics fell short of estimates. Christine LagardePresident of the European Central Bank will speak again on Tuesday and will likely reiterate her commitment to add stimulus later this month.
Vaccine: Moderna completed its phase 3 trial of its vaccine candidate for COVID-19, confirming an efficacy of around 94%. The company announced that it has submitted an application for emergency use and a hearing is scheduled for December 17. The Pfizer / BioNTech vaccine may be approved in the UK in the next few days and in the US next week. The Novavax candidate is also gaining ground. The news supports the gains.
Jerome Powell, Chairman of the Federal Reserve, expressed concern about the current spread of the virus in his comments prepared ahead of Tuesday’s testimony. While he vowed to support the economy, Powell did not hint whether additional bond purchases will be announced later this month.
Janet Yellen, Powell’s predecessor at the Fed, was officially nominated as Secretary of the Treasury by President-elect Joe Biden. In an initial reaction, he echoed concerns about suffering in the coming months, but vowed to keep the American Dream alive. The most recent figures show another record in the number of coronavirus hospitalizations, above 96,000.
The AUD/USD It has resumed its gains amid the weakness of the US dollar and in the wake of the rate decision by the Reserve Bank of Australia. The RBA left interest rates unchanged at 0.1% as expected.
The US ISM Manufacturing PMI Purchasing Managers Index it is poised to descend from the highs, but remains on solid ground. The forward-looking indicator serves as a clue to Friday’s NFP nonfarm payroll report.
The Caixin Chinese Manufacturing PMI and a parallel figure from Japan beat estimates, adding to the optimism. Final manufacturing PMI surveys will be released for the eurozone and the UK.
The crude petróleo WTI It is struggling against the $ 45 level after OPEC + members failed to reach an agreement on the extension of production cuts and are set to extend the talks in the coming days.
The Bitcoin is consolidating its earnings above $ 19,000 after flirting with all-time highs on Monday, hitting records on some exchanges but not others. Ethereum and XRP remain at the top of their recent ranges.
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