- Euro and Pound Both Press Higher
- New Treasury Secretary Nominee Remains Positive
- Global PMIs Both Trump Estimates
December has greeted the forex market with a continued sense of positivity as both the GBP and EUR aim higher to kick start the month. The former is benefiting from a positive market mood with hopes of a US stimulus deal while the latter is boosted by renewed Brexit trade agreement hopes. Traders also seem buoyed by news that President-elect Biden has chosen to nominate Janet Yellen as his Treasury Secretary. Meanwhile, with PMI data expected from the US, similar numbers from both China and Japan have come in better than expected.
European Pairs Continue Good Run
Moderna announced on Monday that they will apply for emergency use authorization for their COVID-19 vaccination that they have shown to be more than 94% effective during trials. This news, coupled with a general positivity around vaccine progress has left those in forex trading feeling confident of further improvements. This and renewed hopes of a US stimulus has kept the EUR/USD trading high above 1.195.
The risk-on sentiment comes as President-Elect Joe Biden continues to move in transition toward the top job in the US. This positive approach meant a minimal fall back in the stock market to end November following rampant gains in the previous week. It has also meant that many have stayed clear of the traditional safe-haven Dollar. Fed Chief Powell is due to give testimony today and many will wait to gauge his approach before deciding how to trade.
First Ever Female Treasury Secretary Nominated
Janet Yellen has been nominated by the new Presidential Administration to become the first ever female Treasury Secretary. This move is in line with a number of trend breaking moves made by the incoming President who has prioritized equality with his selections so far.
Yellen comes in with a stellar track record that forex brokers note seems to have had a positive impact on the market. She has previously served as Federal Reserve Chair and was in that position following the 2008 financial crisis where she helped lead the rebound of the economy. The 74-year old has also served as a chief economic advisor for Bill Clinton. She came out positively yesterday to announce that while times are still difficult, she will do all she can to help restore the American dream.
Strong PMIs Worldwide Beat Estimates
As news is awaited later in the day regarding US ISM Manufacturing PMIs, the market reacted positively to other PMI numbers around the world coming in ahead of expectations. Numbers from both Japan and China topped what analysts had expected though these economies have both been recovering strongly and with a much lower coronavirus caseload than the US.
In China, figures rose sharply to indicate the fastest improvement in manufacturing in the last 3 years. The November PMI number came in at 52.1 up from 51.4 the previous month and beating analyst expectations by 0.6. US numbers are forecast to drop slightly when announced later today.
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