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UK approves COVID vaccine

EUR/GBP – Daily Candlesticks
Source: GKFX / MT4 (December 3, 2020)

EUR/GBP has held 6-month old support at 0.886 and has broken above a falling trendline to trade back above the 0.90 handle in a potential bullish reversal.
 

TAKEAWAYS


•    UK 1st country to approve a covid-19 vaccine
•    Pelosi and Schumer back $900 billion bipartisan stimulus
•    S&P 500 hits new record high
•    Dollar extends losses, EUR/USD > 1.21 after ADP miss
•    US 10-year Treasury hits 0.95% (nearing big 1% barrier)
•    Gold jumps $15 in 2nd day of gains after sell-off
•    DAY AHEAD: Global Services PMIs, Eurozone retail sales, ISM Services
 

GURU WISDOM


 “You only get to know which predictions will be correct afterwards. When it’s too late.” - Robert Rolih
 

MARKETS


*Daily closing price
↗ EUR/USD    1.2113        (+0.36%)
↘ GBP/USD    1.3371        (-0.33%)
↗ USD/JPY    104.43        (+0.12%)
↗ S&P 500    3662.45    (+0.18%)
↘ Hang Seng    26,567        (-0.13%)
↗ Gold    Spot    1830.86    (+0.88%)
↗ Oil (Brent)    47.95        (+1.12%)
↗ Bitcoin    19,213        (+2.16%)
 

NEWS

EUR/USD > 1.21

The breakout above 1.20 accelerated on Tuesday, with the currency pair rising above 1.21. Weakness in the US dollar seemed to be the driving force. A miss in US ADP data and the resumption of stimulus talks triggered the USD weakness.
 

ADP miss


The miss in ADP alongside weakness in other US labour market indicators sets up a possible miss in Friday’s payrolls report. However, a negative NFP print is still not expected by most and is likely to jolt markets were it to happen. 
 

Stimulus update


Democratic leaders Pelosi and Schumer have got behind the $900 billion bipartisan stimulus proposal we referenced yesterday. Now Senate leader Mitch McConnell will need to reverse his initial opposition to the deal if he is to engage in new stimulus talks.
 

UK approval


The United Kingdom has rushed through the world’s first approval of the Pfizer/BioNTech covid-19 vaccine. The vaccines will be shipped out next week for emergency use cases. The pace of the approval will set the tone for other governments and could accelerate other national approvals. The next big news to drop will be approval from the US FDA.
 

Gold rebound


The price of gold jumped for a second day helped by weakness in the US dollar. Traders will now be watching whether old support at $1850 acts as resistance after breaking. Gold rose alongside Treasury yields, which are grinding towards 1% amid vaccine optimism.
 

DAY AHEAD 


*Times in GMT
09:00    EUR    Markit Services PMI(Nov)     41.3    41.3    
09:00    EUR    Markit PMI Composite(Nov)     45.1    45.1
10:00    EUR    Retail Sales (YoY)(Oct)         2.7 %    2.2 %
15:00    USD    ISM Services PMI(Nov)         56    56.6