The dovish market sentiment is still persisting on increasing worries about the global economic recovery amid rising of corona virus cases across the globe.
After US scored new daily high cases above 300k, while the rollout vaccination is still running slower than expected dampening the hopes of watching robusting economic growth this year.
While the first quarter of this year is looking overwhelmed by higher-than-expected cases and faster new spreading strain of it drove UK to the third lockdown since the beginning of the virus contagion.
The demand for the greenback as a safe haven shocked the cable try to capitalize on the Brexit reached deal sending it below 1.36 again.
While coronavirus new variant is locking UK raising the odds of watching new BOE easing measurements, after it decided last month to keep its main lending rate at 0.1% and retaining its target stock of asset purchases at £895b.
From the other side, the Fed is still expected to be on its commitment to support the U.S. economy for a prolonged period of time holding its massive asset purchase program until it sees “substantial further progress” in employment and inflation.
As the FOMC recent economic assessment said following its members meeting last month which has been followed by the Fed Chair Jerome Powell’s comment that the case for fiscal stimulus is “very, very strong” as the pandemic continues to rage.
Powell’s message was the strongest from his side and the most remarkable following that meeting and it could really push to reaching a fiscal deal later to boost the economy.
The central banks easing policy could boost the demand for gold and digital currencies as hedge options against inflation and the current printing money for stimulating the economies.
The Gold is now trading close to $1940 per ounce and BTCUSD is still trying to hold above $30k, while the oil prices retreated to watch WTI trading now near $47.5 per barrel on increasing worries about the global demand and failed try from Russia to raise the production next month ended to hanging of OPEC+ meetings.
The market will be waiting ahead today for the release of Dec US ISM manufacturing index which is expected to show decreasing to 56.6 from 57.5 in November.
While the eyes will be closely watching the outcome of Georgia Senate runoff elections to know whether or not the Dems can be able to gain the 2 rest seats of the state to have clear majority in the senate and shock Trump’s hopes in this state again.