- EUR/USD Moves Off Low on Positive News
- Sterling Also Benefits From Brexit Hopes
- Wall Street Open Higher Again amid Optimism
The forex market benefitted across the board on Tuesday from more upbeat vaccine news as well as renewed hope that a US Stimulus Deal can finally get done. Both the Euro and Pound traded higher against the Dollar on the back of this news. The Pound has the added benefit of still hoping that a Brexit trade deal can also come to fruition. The previous deadline has now been abandoned by the UK as they seek agreement before they leave on December 31st. Stock Markets are also seeing the optimism from the day’s news with markets opening higher today.
EUR/USD Bounces Back to Life
The Euro has found some energy again today having fallen back during early trading. News from the US that a stimulus agreement may yet be found will have played into the hands of a stronger Euro that is now back above the mid $1.21 mark. While there is optimism around vaccine developments and the fact that ECB support remains steadfast, trouble could also be lurking just around the corner for Europe.
While many nations try to emerge from the COVID-19 shadow and Eurozone figures have been moving the in the right direction, the recently announced decision that Germany will go into full lockdown over Christmas will hurt progress down the line. Chancellor Angela Merkel announced the stricter measures to curb the virus spread that will see all non-essential shops, services, and schools shuttered until January 10th.
Pound Continuing to Wait for Brexit
The GBP has remained surprisingly strong throughout a tumultuous period for their European neighbors and themselves. This is despite the ongoing debacle around whether they will be able to secure a trade deal with Europe prior to their exit. The good news for those forex trading the GBP is that they have dropped their self-imposed deadline which passed on Sunday.
Instead, they will shoot to complete a deal before the point of no return on December 31st though they still appear some way off according to both sides. A slightly better than expected unemployment rate of 4.9% and a vaccination program that seems to have kicked into high gear are both notable positives, while the movement of London into the highest tier of virus restrictions may dampen the festive mood.
Moderna Vaccine and More Bring Higher Open
Forex brokers are not the only ones busy on Tuesday as Wall Street has again met an opening bell with higher numbers. A new proposal for a stimulus of close to $750 billion has the street buoyed as does the news that the Moderna vaccine is a step closer to being the next approved coronavirus vaccine.
The Dow Jones is up more than 100 points as the Pfizer vaccine starts to be rolled out and more economic relief would be the icing on the cake for an economic comeback from the US as official President-Elect Joe Biden continues the transition to the White House.