Here is what you need to know on Wednesday, December 2:
The risk sentiment turned on, to the detriment of the greenback. Several headlines maintained the mood upbeat throughout the day.
A group of bipartisan us lawmakers offered a new $908 billion COVID-19 relief package, much larger than the previously discussed. Talks between House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell stalled ahead of the presidential election. Several US economic aid programs are meant to conclude this December.
On the Brexit front, news surged indicating that trade talks between the UK and the EU may be at the final stages of a deal. According to the news, the EU’s chief Brexit negotiator, Michel Barnier, has stopped internal debriefs to the wider EU after delivering the last one last Friday. An agreement could be announced by the end of the week. Sources from both UK and EU Brexit teams poured some cold water on the market’s enthusiasm, as one told a Sky reporter that “negotiations cannot become any more intense.”
Meanwhile, hopes that coronavirus vaccines will be approved for emergency use as soon as this month, further underpinned the market’s sentiment.
The dollar also suffered from soft local data, which helped lift EUR/USD to a fresh 2-year high of 1.2054. As for GBP/USD, the pair reached a fresh 3-month high of 1.3442. The Canadian dollar was also among the best performers, reaching 1.2923 against the greenback, a level that was last seen in October 2018.
USD/JPY and AUD/USD remained confined to tight intraday ranges within familiar levels.
Broad dollar’s weakness helped gold to recover some ground, with the bright metal settling at $1,814.00 a troy ounce.
Crude oil prices edged lower as OPEC+ have delayed talks on output levels amid disagreements on production cuts. WTI settled at $44.40 a barrel
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