Analysts Are Confident in the BREXIT Trade Deal

by JustForex

JPMorgan analysts have raised their chances of the Brexit trade deal from two-thirds to 80% as far as negotiators from the UK and the European Union are trying to reach an agreement before the end of the year.

“Since the summer we have put the odds of a deal at about two-thirds, and no-deal at a third,” JPMorgan said in a note to clients on Tuesday.

“Given the recent newsflow, the likelihood of a deal is clearly growing, and hence we shift our assessment to 80-20 in favour of a deal,” – it’s said in the message. A BREXIT trade deal will have a positive effect on the movement of EUR and GBP, so it’s recommended for traders to follow the progress of the negotiations.

Chinese Prime Minister Li Keqiang expects that the economic activity in the country may return to reasonable limits next year after the impact of the coronavirus pandemic on economic growth in 2020.

It was noted that China will continue to open up and will not pursue a trade surplus, but instead will pay equal attention to imports and exports. The Chinese government also plans to reduce the tax burden on business this year by 2.5 trillion yuan (about $ 373.1 billion) to support economic growth amid the pandemic. This may indicate the attractiveness of the Chinese yuan for investments in the future.

On Wednesday, oil prices are rising after reaching their highest levels since early March based on the results of the previous trading.

Investors remain optimistic about the demand outlook due to the news about the coronavirus vaccines development.

WTI crude oil prices are trading at $ 45.30.

Market indicators

US indices were closed with the rise on Tuesday after the US President-elect Joe Biden got approval to lead the country after a few weeks of political uncertainty and amid encouraging news about the COVID vaccine.

The Dow Jones index rose by 1.54% to 30.046.24, the S&P 500 – by 1.62% to 3.635.41, which also became a historic closing record.

The Nasdaq Composite added 1.31% to 12.036.79.

The dollar index dropped to 92.03 as a result of macro statistics on consumer confidence.

The 10-year US government bonds yield remains stable at 0.88%

It is worth paying attention to the news feed for today. At this time, we recommend limiting your risks in positions.

• – US core durable goods orders at 15:30 (GMT+2)
• – US GDP at 15:30 (GMT+2)
• – US new home sales at 17:00 (GMT+2)
• – US crude oil reserves at 17:30 (GMT+2)
• – Publication of the FOMC minutes at 21:00 (GMT+2)
• – UK autumn forecast report.

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.