Here is what you need to know on Friday, November 20:
The US dollar is marginally lower amid a clash between the US Treasury and the Federal Reserve over stimulus funds. Coronavirus fears and vaccine news are moving markets as well. Brexit developments are eyed.
The safe-haven dollar has pared some of its gains triggered by a rare public spat between America’s top economic institutions. Treasury Secretary Steven Mnuchin demand $580 billion in unused funds to be returned from the Federal Reserve. The bank’s response was that the money is used as an emergency lending facility. It is unclear what the Treasury wants to do with the funds, but the out-in-the-open fight weighed on markets.
Raphael Bostic, President of the Atlanta branch of the Federal Reserve, pushed back against the Fed. Robert Kaplan, his colleague from the Dallas Fed, speaks later in the day. Speculation about the Fed’s next moves is also rife.
Coronavirus: The US hit a new daily high of 185,000 infections on Thursday, with hospitalizations and mortalities also hitting peak levels. Cases remain elevated in Germany and are edging lower in France.
Vaccine: Pfitzer and BioNTech are set to apply for emergency authorization for their immunization candidate as early as Friday. The EU secured additional vaccines from both Pfizer and CureVac.
Brexit: Contradicting headlines are rocking the pound. France and Belgium have reportedly asked the EU to step up preparations for a no-deal Brexit. On the other hand, others expect a deal to come to fruition. Face-to-face talks have been suspended after one team member tested positive for coronavirus. Brussels’ chief negotiator Michel Barnier is set to brief EU ambassadors.
UK Retail Sales beat estimates with an increase of 1.2% in October, showing the resilience of the British consumer ahead of the second nationwide lockdown.
US politics: President-elect Joe Biden remains the winner in Georgia after the state completed a manual recount. The Peach State and additional battelground ones are set to certify the results. President Donald Trump summoned Michigan Republicans to the White House to try to influence the results. So far, his legal attempts have failed.
More American Politics and the Pandemic: What are the markets thinking?
USD/CAD is trading below 1.31 amid modestly rising oil prices and ahead of Canada’s Retail Sales report. Minor increases are on the cards for September.
Bitcoin has recaptured the $18,000 level after a short consolidation period. Ethereum has been edging up toward $500.
More When the market shivers, the Fed delivers? Where next for markets
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