Greenback Lifted as Fed Meeting Looms
The US index ended a muted session at the start of the trading week, as it bounced off the 90 psychological support mark.
Investors continue to gauge President Biden’s plan to pump in $1.9 trillion under a new stimulus package. This is against opposition presented by Republican policymakers.
Fed Chair Powell could halt the US dollar rebound by echoing more dovish tones, as attentions turn to tomorrow’s Fed meeting.
Europe Still Crossing Bridge to Recovery
The euro slid by 0.27% on Monday as the EU has warned it will tighten rules on exports of Covid-19 vaccines.
This comes as AstraZeneca confirmed it could not meet agreed supply targets due to an issue with a plant in Belgium.
This has meant a cut of 60% to 31 million doses. It comes just weeks after Pfizer also announced supply delays.
Is this another nail in the coffin for the bloc’s economic recovery?
New Variant Hits the UK
Sterling fell for a second consecutive session over concerns of new mutations of Covid-19 affecting the UK.
Boris Johnson is expected to sign off on plans. This includes tougher border controls by putting new arrivals into isolation.
This comes as Covid-19 cases fell by 41% week-on-week. All new arrivals with be taken to hotels at their own expense for ten days.
Will this be enough to stop further strains of the virus?
Global Stocks Edge Higher
US indices started off on a positive note after hitting all-time highs last week, with the Nasdaq and S&P closing over 0.3% higher.
As earnings season is fully underway, companies such as Goldman Sachs and JP Morgan have seen progressive growth after beating estimates.
Now it is the turn of the tech-heavy companies. Highly anticipated results from Microsoft, Apple, Facebook, Tesla, and Amazon are expected to move the market once more.
Gold Quickly Reverses from Intraday Top
The yellow metal ended indecisively yesterday as the evident dip to the $1850 region portrayed a cautious mood.
An uptick in the greenback capped gains for the dollar-denominated commodity for the time being.
In the absence of any major market-moving economic releases today, developments surrounding the coronavirus saga will play a dominant role in influencing the broader market risk sentiment.
Oil Rebounds from Friday’s Sell-Off
WTI rose by 1.13% on Monday as it continues to battle against pandemic headlines.
Iraq’s output cut boosted upside momentum. Along with news of a fire in a Russian refinery, and a dispute in Libya.
In the near-term, demand seems to be lifted. However, as we delve into 2021, will oil stay afloat?