Forex Today: Definitions’ time has arrived
|Here is what you need to know on Monday, December 21:
The financial markets keep gyrating around Brexit negotiations and US funding talks. The latter seems to be in better shape than the first one, although definitions on both are expected this week.
Regarding US stimulus, US lawmakers announced on Saturday they reached a compromise, paving the way for a $900 billion coronavirus relief package and government funding. A sticky point is a dispute over Fed’s lending facilities, as Republicans are against letting the central bank interfere in business. Additional headlines on the issue may come ahead of the weekly opening.
The greenback corrected extreme oversold conditions on Friday but resumed its decline ahead of the weekly close. EUR/USD finished the week around 1.2250, near its year’s high at 1.2272.
On the Brexit front, trade talks are still stuck. according to weekend headlines. Differences remain not only around fisheries but also on the level playing field.
On Saturday, UK Prime Minister Boris Johnson moved London and areas of Southeast England into tier-four level of restrictions, amid a new variant of the coronavirus, which seems to be much more contagious. Johnson said that there’s no reason to believe the vaccine will be any less effective against it. Still, discouraging news may push sterling lower at the weekly opening.
Gold had spent the week mute just below the $1,900 level. Could get a boost and gap higher once the US announces financial decisions.
Bitcoin price at $100,000 is overly conservative, says on-chain analyst Willy Woo
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