US Dollar Strengthened Vs Other Currencies, UK GDP Grew By A Record
Focus of the day:
ViVAPOST – On Wednesday, the US dollar strengthened versus other currencies as investors tempered bullish expectations about a COVID-19 vaccine, while virus cases kept surging, especially in Europe. On Thursday, the euro has been trying to retrace the losses, although we recommend being careful with resistance: sellers may get back to the game quite soon. Other pairs also provide plentiful technical trade opportunities. Market’s attention will be focused on the comments of the heads of the ECB, Bank of England, and Federal Reserve at an online ECB Forum later today. The central bankers may either boost hopes for monetary stimulus and economic recovery or give their warnings and make investors turn to safe-havens. Given the dire environment, the second scenario looks more likely.
US President Donald Trump’s refusal to concede defeat in the election is beginning to jangle investor’s nerves. Anyway, Trump will remain in power until Jan. 20, so his actions and words will keep affecting markets in the near term.
The pound nursed losses as trade talks between Britain and the European Union seemed set to drag on past yet another deadline, raising the prospect that no trade deal is reached before Brexit transition arrangements end in December.
The German government’s council of economic advisers cut the growth outlook for 2021.
The UK GDP grew by a record 15.5% between July and September. Still, the British economy remains almost 10% below pre-pandemic levels. Growth also slowed throughout the third quarter.
Oil futures pushed higher this week following progress on a potential coronavirus vaccine and further signs OPEC+ may delay its planned output increase in January. Expectations for a decline in US crude and refined products supplies are also helping support prices. On the downside, coronavirus fears limit the upside. WTI spiked above $42 a barrel and turned down.