US Close To Approving Second Vaccine

By Orbex

Congressional Leaders Compromising on Stimulus

The US index fell by 0.25% on Tuesday as it gravitated back to a 32-month low.

This comes as Congress leaders double down on efforts to break the long-standing stimulus deadlock by the end of this year.

The greenback will be bracing for today’s Fed meeting, along with projected downgraded PMI data and retail sales.

In addition, regulators have cleared the way for the emergency authorization of Moderna’s vaccination. The FDA vaccine panel meets today to discuss the approval, as the US coronavirus death toll passes 300,000.

PMI Data Could Show Renewed Slowdown

The euro closed indecisively once again yesterday as it hovers just shy of the 1.22 handle.

Eurozone preliminary PMI analyses for December will be in the spotlight, with forecasts pointing to moderate readings in business activities.

However, the German government’s decision to go into nationwide lockdown for one month is a big problem for their economy, and in turn the euro’s long-term recovery.

How many other of the continent’s authorities will follow suit, as we go into what would be a high tourist-driven period.

Tentative Progress Made with Brexit Talks

The pound had a day to remember on Tuesday as it jumped over 1% higher as optimism heightened over a Brexit deal.

Progress has been made following a concession from Boris Johnson on the thorny topic of a level playing field.

However, the Prime Minister was quick to acknowledge that the UK wants a trade deal, but not at any cost.

Two weeks to go!

Indices Edge Higher on Continued Optimism

All three major indices closed over 1% higher yesterday as the S&P, Dow, and Nasdaq all reached fresh highs.

Sentiment increased over further coronavirus vaccines and revived congressional efforts to pass a spending package for the pandemic-hit US economy.

Investors were cheered by positive statements from the FDA about the Moderna covid vaccine, just days after the agency cleared the Pfizer vaccine.

Gold Ignores the Headlines

Gold closed 1.35% higher on Tuesday, breaking the $1850 psychological handle.

The gold rally focus shifted to the US relief progress, further lockdowns, and the final Federal Reserve meeting of 2020.

Will we finally see a worthy attempt at the $1900 area before the year is out?

Oil Bulls Maintain Rally

WTI closed 1.40 higher yesterday as it edged closer to $48.

An inventory build reported by the API and the risk of falling demand as further lockdowns are imposed, failed to deter the black gold.

The distribution of vaccinations, along with more pharmaceutical companies touting further vaccines, continued to support the oil rally.

By Orbex