The market was braced for a meeting between the British Prime Minister and the European Commission. There is hope, especially after Boris Johnson has agreed on some amendments regarding the Northern Ireland part of the contract. With this news, sterling reached 1.3440, adding 0.65%. Protective assets have slightly retreated from the positions they had won, and yields on the credit market are growing. But many stumbling rocks still remain, and the direction can be quickly reversed.
Johnson admits the complexity of the situation.The options market still estimates the likelihood of reaching an agreement as a low one. This reflects the credit market too – German and British benchmark 10-year bonds are significantly inferior to US Treasuries.
In general, it’s relatively calm in the market. Investors are awaiting a decision by central banks regarding the amount of additional stimulus. December will be rich in such events. In addition, the Minister of Finance, Steven Mnuchin unexpectedly got back to the issue of additional stimulation of the economy by $908 billion today. The new proposals sent by Nancy Pelosi have been positively reacted by the Speaker of the House, which indicates the progress on this issue.
Because of these events, the stock and credit markets are trading in green. The dollar is receding.
S&P 500 (F) 3.710,62 +8,62 +0,23%
Dow Jones 30.173,88 +104,09 +0,35%
DAX 13.399,75 +121,26 +0,91%
FTSE 100 6.590,65 +31,83 +0,49%
USD Index 90,760 -0,208 -0,23%
Gold -9,60 -0,51%
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by 2020.12.09, We advise you to get acquainted with the daily forecasts for the major currency pairs.
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