Trading-Forex

(14 December 2020)DAILY MARKET BRIEF 2:The British pound is rebounding

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In the commodity market, oil prices are bullish on Monday, with Brent returning above the $50 mark. Prices are maintaining at their highest levels since the beginning of March. Both the WTI and Brent have gained over 1.1% so far. The prices have gained traction amid Pfizer’s vaccine approval in the US and a tanker explosion in Saudi Arabia.

Elsewhere, gold is declining amid increasing interest in risk assets driven by the COVID vaccine news. Investors also expect that the US will pass another stimulus package soon. Gold futures are down 0.40% to $1,836.
In FX, the US dollar is bearish as interest in the safe-haven is fading amid the rollout of Pfizer’s vaccine, while the Fed is expected to ramp up the bond-buying programme. The USD Index has dropped 0.26% to fresh year-to-date lows at 90.688. EUR/USD is up 0.24% to 1.2142.

The British pound is rebounding from monthly lows as the UK and the European agreed to extend Brexit talks after a deadline that came and went on Sunday. However, officials from both sides admitted that a no-deal Brexit is more likely.

By Strategy Desk

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