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Here is what you need to know on Monday, November 25:

Trade: China will raise penalties for theft of Intellectual Property (IP) in a step that is seen as a gesture toward the US. The topic has been one of the sticking points in trade talks. According to the Global Times, a Chinese outlet, the world’s largest economies are close to striking “Phase One” of the deal. Stock markets are on the rise, and the risk-on atmosphere is weighing on the dollar, the yen, and gold.

Hong Kong: Local elections in Hong Kong resulted in overwhelming support for the pro-Democracy camp in a calm atmosphere. President Donald Trump is yet to sign Congress’ HK bill into law. Developments in the city-state have played a role in US-Sino relations.

EUR/USD is recovering after Friday’s flash Purchasing Managers’ Indexes showed that Germany’s services sector is decelerating while the improvement in manufacturing still leaves it deep in contraction territory. The German IFO Business Climate is forecast to advance. See  EUR/USD Forecast: Further falls due amid downtrend channel downbeat data and trade troubles.  

Australian dollar: The Aussie is taking advantage of the news to recover to 0.68, but investors are cautious ahead of two critical speeches from the central bank, especially one from Phillip Lowe, Governor of the Reserve Bank of Australia, on QE.  

UK elections: The weekend opinion polls have continued showing double-digit leads for Prime Minister Boris Johnson’s Conservatives, with one survey printing a 19-point advantage over Labour. Johnson presented his party’s manifesto and vowed to bring the Brexit accord to parliament before Christmas.  

Cryptocurrencies have extended their falls, with Bitcoin falling to $6,500. China’s crackdown on exchanges has been taking its toll. The drama around Ruja Ruja Ignatova, aka “cryptoqueen” continues.