It was a mixed start to the week for the global stock market. Investors digested some positive news towards the end of last week and over the weekend. Despite ongoing tough negotiations, both the EU and the UK are keeping hopes alive following a promising phone call on Sunday. On the virus front, the first COVID-19 vaccination was administered to the US public on Monday providing some relief.
On Wall Street, the Dow and S&P 500 closed in negative territory while Nasdaq Composite edged higher boosted by the performance of the big tech companies:
In the FX space, major currencies were mixed against the US dollar amid a relatively muted economic calendar. The greenback remains fundamentally weak against major pairs. Commodity-linked currencies firmer higher but pared gains towards the later session following weaker commodity prices. The Pound was among the few currencies to have climbed higher against the US dollar following hopes that Brexit talks were kept alive and a no-deal scenario might be avoided.
The GBPUSD pair gapped higher on the open and reached a high of 1.3445 before closing lower at 1.3324 on Monday.
Source: GO MT4
Last week, the US FDA voting and authorisation of the vaccine in the US helped crude oil prices to extend gains. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $46.94 and $50.29 respectively. Traders will likely keep monitoring weekly oil reports, vaccine updates and further lockdown measures for fresh trading impetus.
The precious metal struggled to find any upside momentum as US stimulus talks remain murky. As of writing, the XAUUSD pair was trading around $1,828.
Source: GO MT4
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|Wednesday, 16 December 2020
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