US Market Wrap
Markets fell away yesterday as hopes of larger stimulus was rejected by the Republican leader of the US Senate.
In a move that the direct opposite of what US President Trump was hoping to achieve, Mitch McConnell rebuffed a bid by Senate Democrats for a vote on increasing the value of relief checks for individual Americans to $US2000.
McConnell continues to be at odds with the President and the majority of Republicans and it is growing clearer by the day that his allegiances are questionable.
As a result, equity markets dropped, led by the Russell 2000, while the Greenback continues to tumble. The soft USD is helping prop up the majors and for now, the trend looks like it is going to continue.
The Data Agenda
There is little data around again today, with the only major news being Pending Homes Sales data from the US.
Real estate has been an interesting one of recent times, with a clear move away from the major US cities of LA and NYC and towards regional areas. There is also a big push towards both Texas and Florida, two states that have had limited restriction put in place.
Later in the session, we will get the latest WTI crude oil inventory data, where it is expected that we will see a large 2.5M draw. Oil is pushing towards that key $50 level, helped by a falling USD.
Forex Signal Update
The FX Leaders Team grabbed the one win on our USD/JPY signal as the Greenback continues to capitulate.
Make sure you follow our live signals as volatility could increase as we head into the some volatile times in the coming weeks, starting with the Georgia run-offs.
Oil – Watching
WTI is pushing into that key $50 region and as we can see on the charts, is making a series of higher lows. A big draw is on the cards today, so keep watching this one closely.
USD/CAD – Active Signal
The USD/CAD is soft led by a falling Greenback. We are short here looking for more downside to come.
BTC is back in focus today as price hurdles back towards the record-high $28,000 level.
Price is currently testing that level and we often see these big moves when markets are in semi-holiday mode. I remain biased to the long side.
Go to the news source: Forex Signals Brief for Dec 30: McConnell Rebuffs $2,000 Stimulus