Today the markets have a schedule packed with events and publications once more.
To start with, investors had their eye on the rate decision from the central bank of Switzerland. The regulator kept the rate unchanged at -0.75%.
The Bank of England also had a policy meeting earlier today and did not change the interest rate (which is at 0.1%). It did not expand its asset purchasing program either, despite a prolonged bout with the coronavirus in November and December which may jeopardize Q4 final reports.
Furthermore, the eurozone released some of its latest inflation data. All of the reports were in line with the forecasts, so no surprises there. Overall, data from Europe this week has been neutral to positive, helping the euro appreciate against the dollar.
Later in the day we expect unemployment information from the United States. Both the initial and continuing jobless claims will be of interest to investors, considering the seriousness of the coronavirus outbreak in the United States and the new lockdowns some states and cities have implemented.
Speaking of the US, the dollar is having a rough time again. The reserve currency has slumped to its lowest level in more than two and a half years, with the dollar index dropping below 90 today. The reason for the decrease is the low demand for safe havens.
The prospect of more fiscal stimulus in the United States due to talks going on in Congress, as well as the EU and the United Kingdom possibly hatching out a trade agreement, are boosting risk appetite at the expense of the USD.
Bear in mind that the cheaper dollar has meant assets quoted in USD are increasing in value. This applies to metals (gold, silver, copper, iron), oil, and cryptocurrencies, among others. Bitcoin surpassed $22,000 today.
The environment of calming political tensions has also been beneficial for the stock markets, where an increase is widely observed in all major stock indices. Watch out for Moderna’s shares today as the company’s Covid-19 vaccine is likely going to get approved by the FDA today or tomorrow.
Big tech stocks such as Facebook and Google may also be in the spotlight, though for completely negative reasons. The two companies stand accused of illegally conspiring together on advertising policies, using the monopoly each company has in its respective sector.
