The U.S. Dollar is trading in weaker ranges following a week that confirmed there is momentum behind the global recovery as outlooks for 2021 shoot for a solution to the pandemic’s woes.
Overview
While data has been mixed, it looks like markets are energized after stocks had their best month ever. The MSCI World Index had a historic November rising by 13.0%. It is no secret that the buck swung wildly as it regained its status as safe-haven only to see it completely fade away the last week of the month. U.S. Surgeon General Jerome Adams is also hoping to quickly approve COVID treatments as requested by pharmaceutical companies to act in a state of emergency.
The 2.7% drop in the value of the buck for November could be eased somewhat in December if there are any vaccine setbacks or if indeed the winter plays out as tough as the CDC predicts. Once again, the United States is partially shut in certain regions as states and counties take it upon themselves to contain the virus. We shall see what may be ahead in terms of fiscal and monetary policy cooperation as Fed chairman Jerome Powell speaks to Congress Tuesday and Wednesday.
What to Watch Today…
- No major events scheduled for today
View this month’s Economic Calendar
EUR ⇑
The Euro is sitting on fresh new highs after reaching its best level since May 2018 last week. Not a whole lot of excitement on the other side of the Atlantic as Hungary and Poland remain thorns on the side of the EU as bigger economies are trying to implement the funds.
Spain is already planning to fix its economic issues with some of the rescue funds already assigned to them. Data tomorrow could perhaps solidify Euro strength, but we see swings coming as the EU tries to get everyone more integrated as they still combat an aggressive virus.
GBP ⇓
The Pound cooled down some as Brexit comes back into focus. While we have reported that recent sentiment has turned friendlier and that the tone of talks improved, economists are pointing out that other than the hardline approach by Dominic Cummings being absent, there is plenty of concern left about a no-deal scenario especially this close to starting 2021 with some hard border items already in place.
Surely, the situation in Britain could get better, but there is no sign or promise of that at a moment when the Tories are losing popularity and could be challenged. The U.K. could have a rough end of the year without much of a guide for what the next one should look like diplomatically and business-wise.
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