- The two major U.S. stock market indices, the S&P 500 and the Dow Jones Industrial Average, both traded at record all-time highs as Treasury Secretary Mnuchin presented a new economic stimulus package to Speaker Pelosi, generating some hope that a deal between the executive branch and Congress will be reached soon. This boosted risk-on sentiment somewhat, as did President-Elect Biden’s pledge to vaccinate 100 million Americans within 100 days of his taking office.
- The British PM has departed for 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. 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 releases its monthly rate statement today.
- Bitcoin has begun to fall after failing for several days to reach new highs at or beyond $20,000, suggesting that a major breakout beyond $20,000 is more unlikely to happen over the short term.
- 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.
- 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 200,000 new cases daily and is now seeing close to 3,000 deaths per day.
- Total confirmed new coronavirus cases stand at over 68.2 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, Dominican Republic, Egypt, El Salvador, Estonia, Georgia, Hungary, Indonesia, Israel, Jamaica, South Korea, Malaysia, Mali, Netherlands, Niger, Nigeria, Pakistan, Panama, Portugal, Romania, Russia, Senegal, South Africa, Sri Lanka, Sudan, Turkey, the U.K., Uruguay, and the United States.
Forex Today: Stocks Rise on U.S. Stimulus Hopes
Adam Lemon
Risk sentiment advances firmly again in stocks and commodity currencies.