Forex news for North American trading on December 23, 2020
Is it done or not?
That is a question for Brexit. Some may say it is also the question for Covid relief and the Defense Authorization Act.
Reports on Brexit are that there is an agreement but later there have been reports that the UK government wavered on issuing a statement tonight (there was not one). It seems to be a dotting the i’s and crossing the t’s but nevertheless it is another delay.
In the US, Pres. Trump vetoed the bipartisan defense policy bill because it did not put a clause in to repeal tech platforms legal immunity for content posted by third-party users. The Pres. is against provisions to rename military bases. Earlier this month, the National Defense Authorization Act passed both houses of Congress by veto-proof margins, meaning that any veto by Trump would likely be overridden.
The President also may potential throw a monkey wrench in the recently agreed Covid relief package, saying he would approve $2000 one time payment vs the $600 agreed. He is also opposed to foreign aid in the omnibus package. It is not expected that the Pres. would veto the bill (which would shut the goverment), but nothing is certain. Plus the Dems are supporting the higher payment and is expected to float a bill tomorrow morning but it is unclear if the Republicans will support. However, to pass a change would require clear bipartisan support and it is unlikely.
In the markets, the near end of day values are showing:
- Spot gold is up $11.40 or 0.61% at $1872.25.
- Spot silver is up $0.40 towards 1.62% at $25.59
- WTI crude oil futures is trading up $1.06 or 2.25% of $48.08
In the US stock market, the major indices are mixed. The Dow industrial average and S&P are closing higher. The NASDAQ index is closing lower and near lows for the day. The Russell 2000 index closed at yet another record high for the year as money flows continuing to that index:
In the forex market, the GBP is ending the day as the strongest of the majors, the USD is the weakest. The GBP gains were boosted by the hopes for Brexit. The USD say most of its losses vs the GBP, AUD and NZD. The USDCAD also fell but found support buyers near the pairs 100 hour MA at session lows. 