Democrats presented a new version of the bill on economic support measures in the amount of 2.2 trillion dollars, which provides funding for schools, small business lending programs, tests for coronavirus, and financial aid to states. It also provides for the payment of $ 1,200 to American taxpayers and additional payments to unemployment benefits in the amount of $600 per week. House Speaker Nancy Pelosi said she continues to negotiate with Treasury Secretary Mnuchin on this bill.
On Friday, stocks fell amid news that Donald Trump got a positive test for coronavirus. However, Trump returned to the White House on Monday after a three-night hospital stay, which contributed to the recovery of the stock market.
The dollar stays under pressure due to weakening demand for safe-haven assets, fueled by hopes for a new economic support package in the US.
The pound rose to a 2-week maximum after British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to intensify negotiations on a trade agreement.
The price of oil recovered amid growing demand for risky assets, as well as due to a reduction in resource supply, as strikes are taking place at six Norwegian offshore oil and gas fields, and tropical storm Delta is moving towards the Gulf of Mexico. Offshore Gulf of Mexico oil and gas producers have begun removing staff and securing offshore facilities.
Gold rose to a 2-week maximum due to the depreciating dollar.
Main events of the current week
- On Tuesday, data on UK construction PMI and US job openings will be presented. The Reserve Bank of Australia will hold a monetary policy meeting. Fed Chairman Jerome Powell and ECB President Christine Lagarde will speak.
- On Wednesday, data on Ivey PMI in Canada and crude oil inventories will be presented. FOMC meeting minutes will be published and Christine Lagarde will speak.
- On Thursday, data on Japanese GDP and US initial jobless claims will be released. The minutes of the ECB meeting will also be published and Governor of the Bank of England Andrew Bailey will speak.
- On Friday, data on UK GDP and manufacturing production will be presented, as well as employment change in Canada.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.