This is what you need to know to trade today Tuesday, December 22:
The safe haven dollar is on the rise as concerns about the rapid spread of the new strain of COVID-19 weigh on sentiment. The US Congress passed the stimulus bill, as expected. Hopes of a Brexit advance keep the pound afloat. US growth figures and vaccine development are in the spotlight.
Coronavirus strain: The covid variant, discovered in Britain, continues to shake markets, but early Monday morning panic mode has worn off. US equity markets recovered from their lows and the dollar cut some of its gains. The UK and France are likely to reopen the movement of goods between them after Paris’s decision to close the border caused major disruptions.
The mutation is 40-70% more transmissible than previously known variants, but there is no evidence that it is resistant to the vaccine. The European Medicines Agency approved the BioNTech / Pfizer vaccine and echoed the same notion. It is not clear where else this variant is circulating, as not all countries do robust genetic sequencing like Britain.
American stimulusCongress completed passage of the $ 900 billion stimulus bill, and payments to the unemployed, small businesses and others are scheduled to roll out in the next few days. The legislation was part of a “blanket” bill that also prevents a government shutdown and passes additional decisions.
The markets had already included the price of the agreement which now awaits the signature of President Donald Trump. Gold, which initially jumped in response to the rally, is flat at lower around $ 1,875.
BrexiAccording to the latest information, the United Kingdom has made a considerable concession in fisheries, reducing its demand for the EU to cede the value of catches in UK waters from 60% to 35%, still far from the demand of the European bloc, which demands to give it 25%. The differences are minuscule in economic terms but politically sensitive. European fisheries lobbies feared that EU chief negotiator Michel Barnier was giving up too much ground.
The final reading of the US Gross Domestic Product figures for the third quarter will confirm the 33.1% annualized increase in production. Existing home sales figures for November are expected to show continued strength in the sector.
He AUD/USD remains on the defensive despite upbeat preliminary retail sales figures for November.
Cryptocurrencies: Bitcoin fell below $ 23,000 on Monday and is consolidating its losses. XRP fell dramatically as the US authorities plan to take legal action against Ripple, the company behind it.
As the Christmas holidays approach, the liquidity is falling and it can lead to greater volatility.
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