- U.S. stock markets closed down yesterday, with the tech NASDAQ 100 index seeing its sharpest 1-day fall in several weeks. However, the S&P 500 index briefly traded at a new all-time high and the Dow Jones is still trading above 30,000. Global stock markets have been mixed over the past day.
- The British PM is in Brussels for last-ditch talks in an attempt to secure a trade deal with the E.U. despite the wide divergence between their respective positions on trade. Both parties have agreed on this Sunday as a new “final” deadline for agreement. If a deal is not agreed before the end of 2020, the U.K. will trade with the E.U. on World Trade Organization rules, meaning there will be new tariffs on imports from both sides, which will impact the GBP and, to a lesser extent, the EUR.
- The Bank of Canada left its monetary policy and interest rate unchanged yesterday, with analysts generally seeing no chance of any further rate cuts until 2023.
- The ECB will give its monthly policy input today. The euro is already a major focus within the Forex market so this is likely to increase volatility in EUR pairs and crosses.
- Globally, new coronavirus cases are continuing to rise exponentially, with a new daily record all-time high of 694,884 confirmed cases made last Friday.
- Last Thursday saw a record high number of 12,855 coronavirus deaths reported globally.
- The U.K. has begun its national coronavirus vaccination program, starting with health workers. Two subjects had a short-term allergic reaction to the Pfizer vaccine, leading the U.K. regulator to advise that anyone with a history of allergic reactions not take the vaccine.
- Global coronavirus deaths have increased dramatically since early October to reach a level approximately 90% higher than the peak last April. Coronavirus new cases and deaths have begun to fall in the European Union, but both are currently increasing sharply in the U.S.A. A lockdown has been imposed in California as the state’s intensive care capacity has become severely strained. The U.S.A. is currently confirming more than 220,000 new cases daily and is now seeing more than 3,200 deaths per day.
- Total confirmed new coronavirus cases stand at over 68.8 million with an average case fatality rate of 2.28%.
- The rate of new coronavirus infections appears to now be increasing most quickly in Albania, Azerbaijan, Belarus, Burkina Faso, Canada, Cuba, Cyprus, Denmark, Egypt, Estonia, Georgia, Indonesia, Israel, South Korea, Malaysia, Mali, Netherlands, Niger, Nigeria, Pakistan, Panama, Russia, Senegal, South Africa, Sri Lanka, Sudan, Turkey, Uruguay, and the United States.
Forex Today: Sunday is New Brexit Talks Deadline
Adam Lemon
Forex markets are likely to see more active trading today and tomorrow.