In November, Global stock markets significantly rose caused by a better 2021 economic outlook driven by the coronavirus vaccines from three pharmaceutical companies. Additionally, the high liquidity available in the market injected from central banks through their quantitative easing programs combined with the US political clarity have accelerated the upward trend.
Cyclical stocks led the rally and the Dow Jones Industrial Average traded above 30000 last week in a major break-through hitting an all-time high. However, there still fears from delays in vaccine distribution or people's refusal of the vaccine as it will allow the virus to spread further and hinder the economic recovery.
|
Change % | |
|
+0.2% | |
|
+0.1% | |
|
+0.9% | |
|
-0.8% | |
|
+0.3% | |
|
+0.07% | |
|
+0.5% |
EUR/USD and Main FX Markets
The US dollar index broke below the September 1 low at 91.71 and traded lower eyeing a test of 89.45. A close below 91.71 will change the market outlook from neutral to negative.
The EUR/USD benefited from a weaker US Dollar and opened this week’s trading session with an upward gap at 1.1971 and edged higher eying a test of the September 1 high at 1.2010. The market outlook remains positive while above 1.1909
The GBP/USD traders continue to follow the EU-UK talks updates while the time window becomes even narrower. On the other hand, the UK economy (services sector) is getting ready to reopen after a short lockdown imposed to contain the coronavirus spread. High street retail businesses have been given the choice to keep their shops open 24/7 in the Christmas session in an attempt to recover some of their heavy losses caused by the recent lockdown/s. The pair outlook remains positive while above 1.3185.
Gold and Oil
The Oil price Oil retreated after an OPEC+ agreement to postpone an output increase planned for January remained unclear before Monday’s meeting. The Brent Crude technical outlook remains positive while above $46.47, a close below that level will change it to neutral.
The Gold closed on Friday below $1,796 and slipped to a lower trading zone a close below $1,747 could send the price even lower towards $1,689.
Looking Ahead
On the economic calendar, investors await the German inflation rates of November due at 1:00 PM GMT, the Canadian Building permits of October at 1:30 PM GMT, and the US pending home sales of October at 3:00 PM GMT.