On Tuesday December 29th Senate Majority Leader Mitch McConnell temporarily blocked an attempt by Senate Minority Leader Chuck Schumer trying to increase direct payments in the coronavirus relief package to $2,000 from $600. McConnell also opposed Sanders’ proposal to advance the vote on the check bill to overturn Trump’s agenda for vetoing the defense spending bill. The Republicans were unwilling to pass but dare not veto easily. This has caused global funds to further worry about the fiscal prospects of the United States. More funds have begun to transfer to the risky asset market ahead of schedule. Risky commodity currencies have risen strongly, and the US dollar has been further pressured.
Although the size of the bail-out cheque is uncertain, the US government will continue to provide fiscal stimulus in some form as the epidemic spreads and the economy slumps. In the long run, the dollar will remain vulnerable.
Although the Brexit agreement has been reached, there are still unresolved problems in the current resolution, and its emotional influence on the market still exists, and the market’s worries have not been able to make the pound out of the shock. Although the Brexit agreement has not been fully finalized, it has avoided the damage of a no-deal Brexit and boosted the euro’s continuous rise.
Towards the end of the year, the 2021 global epidemic is coming to an end, with more institutions and investors rebounding in the global economy and return to more fundamentals, as well as a continued easing boost from the Federal Reserve. Boost investors’ risk appetite and strong support from non-US currencies.
Important events to look out for
|17:00||Swiss Credit Suisse/CFA Economic Expectations Index for December|
|21:30||Initial monthly rate of U.S. wholesale inventory in November (%)|
|22:45||Chicago PMI, Dec|
|23:00||U.S. quarterly adjusted monthly sales index for home sales|
|Pending||Health Secretary Michael Hancock will make a statement on the expected classification of the new COVID9|