This is what you need to know to trade today Monday December 21:
The market mood has soured and the US dollar is rising as a new strain of coronavirus in the UK prompted flight bans and raised concerns. US lawmakers reached a $ 900 billion stimulus deal, boosting gold. Headlines about vaccines and Brexit are in the spotlight.
A new strain of COVID-19 is 70% more transmissible, increases the reproduction rate between 0.4 and 0.7 and is “out of control” according to UK Health Secretary Matt Hancock. The VIU-202012/01 variant is probably not more dangerous or resistant to vaccines.
The UK has done genetic sequencing more than other countries. He fear is driving the safe haven dollar and more information on the strain is expected to emerge.
Great Britain announced a new level of restriction, Tier 4, in London and the surrounding areas, and several countries canceled flights to Britain, which could cause supply chain problems before Christmas. The first Minister Boris Johnson will convene the Cobra cabinet this Monday. He GBP / USD is down more than 1%, also punished by the stalemate in the Brexit talks.
Brexi: The EU and the UK continued trying to negotiate a trade agreement also over the weekend and according to the latest information, significant differences remain, especially in fisheries. A possible concession from the EU on this sensitive issue has angered the industry. The Brexit deliberations did not meet the Sunday deadline set by the European Parliament.
American stimulus: Senate Majority Leader Mitch McConnell announced that Democrats and Republicans reached a $ 900 billion settlement, the second-largest in history after the CARES Act in March. The deal includes checks for all Americans, unemployment benefits and help for small businesses.
A breakthrough was made possible after Senator Pat Toomey withdrew from lawsuits to curb the credit powers of the Federal Reserve. The news keeps US equity futures afloat despite concerns about the new virus sequence. The final vote will take place later in the day. He gold has risen above $ 1900 in response.
VaccineThe United States begins administering Moderna’s vaccine on Monday after the Food and Drug Administration approved it on Friday. The European Medical Agency will likely give the green light to the Pfizer / BioNTech vaccine.
ConfinementsOntario, Canada’s most populous province, is poised to enter lockdown, and the news is weighing on the Canadian dollar. Several European countries are tightening the screws, including Italy, where a patient was diagnosed with the new variant of the virus.
Investors are also watching the Russian hack in US federal agencies and lawsuits against technology companies. The economic calendar is light on Monday, leaving room for political and virus headlines shaking the markets.
The oil prices they have fallen amid concerns about declining demand, with WTI crude oil falling below $ 48.
He Bitcoin has exceeded $ 24,000 over the weekend and stays at that level. Elon Musk, the CEO of Tesla, flirted with investing in the granddaddy of cryptocurrencies over the weekend.
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