Happy new month beautiful traders. It’s the final month of the year, so, the question is, would you call this a successful trading year?
Leave your comments below.
Now, let’s get into this weeks expectation;
The Trump administration cut several Federal emergency lending programs. Democrats described the move as a way to limit the financial support Biden may be able to deliver.
As countries across Europe signalled for more restrictions, German Chancellor Angela Merkel implored citizens to wear masks and stick to distancing measures. Britain, France and Italy continued to show signs that their outbreaks are slowing.
On Monday, global stocks paused to appreciate a record month. The prospect of several viable vaccines aiding in economic recovery and new stimulus measure from central banks overshadowed concerns about the coronavirus pandemic.
Let’s take a closer look at how these and other important events affect currency prices, indices, and commodities.
The U.S. dollar hits close to a three-month low last week against major currencies after robust economic data from China pushed investors to riskier currencies last Friday.
The British pound was under pressure as the European Union, and the U.K. revealed significant differences over the Brexit trade deal.
The Canadian dollar rose due to a sharp rise in oil prices, as investors hope for the imminent appearance of a vaccine and the extension of output cuts by OPEC at the beginning of next year.
U.S. weekly jobless claims rose as COVID-19 infections surged.
- November’s Nonfarm Payrolls will be closely watched this Friday.
- Face-to-face talks between the U.K. and the European Union over a trade deal resumed earlier on Saturday.
- The U.S. will be in particular focus, with Fed Chair Powell’s testimony before Congress coming on Wednesday.
- The European Central Bank sees lower inflation with its economic growth prospects are becoming brighter.
On Monday, gold fell to 1,763 USD. Investors’ growing optimism about the vaccine will boost the global economic recovery following the pandemic.
The fall in gold prices accelerated last week, as investors continued to sell safe-haven assets and buy riskier ones, hoping to profit from a possible recovery from the pandemic.
- Gold has moved into the next “downward stage” of its correction phase.
- A break in the support zone between 1,760 and 1,780 USD would create a path for further decline towards 1,600 USD.
- Important trading levels: 1,757, 1,773, 1,789 and 1,800 USD.
Oil prices rose sharply last week as investors bet on vaccines and the recovery of global oil demand.
The most recent data shows that gasoline and diesel demand bottomed out around 15 November and has been recovering since. As European countries ease restrictions in the run-up to Christmas, demand is expected to recover.
OPEC and its allies, including Russia, are leaning toward delaying a planned increase in oil production next year.
- This Monday, an OPEC+ meeting will take place.
- Iraq will not ask OPEC for an exemption from a Pact aimed at cutting production.
- The market expects prices to see limited growth if OPEC+ delays the planned increase in supply for January.
- On Sunday, the group held preliminary talks but hasn’t reached a consensus on an oil production policy for 2021.
The SPX500 ended last week at 3,636 USD. The index held high for the third week in a row.
The news this month of three promising coronavirus vaccines helped push the SPX500 index to historic highs, but some investors fear that the slow pace of vaccinations could weaken the expected economic recovery next year.
Health experts say that Americans travelling for the Thanksgiving holiday are likely to increase the number of cases dramatically.
- Tesla Tesla is preparing for inclusion in the SPX500 index.
- The U.S. Federal government hopes to quickly review and approve requests from two major drugmakers for emergency approval of their Covid-19 vaccines.
- The pace at which any vaccine is adopted remains uncertain. Their availability eliminates the risk of another widespread economic and social lockdown.
- This week, expect to see official
- PMI indices data
- preliminary eurozone inflation data
- A meeting of Australia’s Central Bank
- Speeches given by US’s Powell and EU’s Lagarde
- A release of the “beige book” by the Fed which may reveal the roadmap to their December decisions and the U.S. Treasury will issue a report.
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