FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
ETX Capital information and reviews
ETX Capital
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1765
BTC/USD
47 783.36
GBP/USD
1.3798
USD/JPY
109.7150
USD/CHF
0.9275
USD/CAD
1.2684
EUR/JPY
129.0813

Risk-on Mood Fuelled By U.S. Stimulus Bill


29 December 2020

Global sentiment brightened on Tuesday after the US House of Representatives approved an increase in stimulus payments to a majority of Americans. Given how it was only Sunday that Trump signed a $2.3 trillion spending package, this encouraging development is set to lift risk appetite and investor confidence. A potential boost in stimulus aid that increases payments to $2000 from $600 will be a welcome development for qualified Americans while uplifting confidence over the US economy. 

However, it may be too early for celebrations as the Senate will need to approve the bill for it to become law. When factoring in how Republicans controlling the Senate may not be open to the increased amount, things could get messy this week.

Most Asian stocks rose with U.S futures on Tuesday amid the positive U.S. stimulus developments while European equities are likely to soak up the risk-on vibe.

Dollar waves white flag 


It's slowly shaping up to be a depressing week for the Dollar. All the positive news around the U.S stimulus bill and prospects of inflation rising in the United States is weighing heavily on the Dollar. The former king of the currency markets has weakened against every single G10 currency this month, quarter, and year. With bears clearly in the driving seat as fundamentals batter the Dollar, the path of least resistance points south. 

Taking a look at the Dollar Index, it has shed over 6.60% since the start of 2020. Prices are struggling to keep above 90.00 as of writing. A breakdown below this level is likely to open a path back towards 88.00.

Pound…what next?


One would have expected the Pound to push higher after the United Kingdom and the European Union reached a breakthrough in terms of a post-Brexit deal. While this development may remove a layer of uncertainty for the UK as 2021 looms, many questions around the trade agreement remain unanswered. With the way things are going, the Brexit saga could release a spin-off in 2021 revolving around the trade agreement. 

In regards to the technical picture, the GBPUSD could experience a pullback before pushing higher. Sustained weakness below 1.3482 may open a path back towards 1.3300 and 1.3200. Should 1.3482 prove to be reliable support, prices may target 1.3630.

Commodity spotlight – Gold 


The next few days could choppy for Gold prices due to conflicting forces. On one side of the equation, surging coronavirus cases, a fast-spreading new strain of COVID-19, lockdown restrictions, a weaker Dollar, and US stimulus hopes have supported Gold bulls. However, optimism around the COVID-19 vaccinereviving global growth continue to blunt appetite for the precious metal. Given how risk-on remains thename of the game amid the positive US stimulus developments, this is likely to limit Gold’s upside. It maybe best to keep a close eye on how prices react around $1850, $1870 and $1900.

#source

Related

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021

Fintech - too big to be?
Fintech - too big to be?

Two of the world’s largest economies are in sync with pressure on their fintech giants. Access to user data and the growth of ecosystems have effectively...

13 Sep 2021

European Futures Set To Recover Losses
European Futures Set To Recover Losses

European futures are trading higher today as investors are largely glad that the European Central Bank didn’t take too many hawkish monetary initiatives yesterday...

10 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.