Dollar gets whacked!

GURU WISDOM

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go.” - Benjamin Graham
 

MARKETS

*Daily closing price
↗ EUR/USD    1.2072        (+1.20%)
↗ GBP/USD    1.3421        (+0.75%)
↗ USD/JPY    104.34        (+0.06%)
↗ S&P 500    3662.45    (+1.13%)
↗ Hang Seng    26,567        (+0.86%)
↗ Gold        1814.81    (+2.12%)
↗ Oil (Brent)    44.96        (+1.91%)
↘ Bitcoin    19,137        (-2.79%)
 

NEWS

EUR/USD breakout

The US dollar was hit hard late on Tuesday on news about a prospective US stimulus plan. Passing a stimulus deal is thought to be good for risky assets and would hit havens like the USD. Government spending is one of the components in the calculation of GDP- it directly adds to growth calculations. The dollar weakness played well for gold, which was sitting at a 50% pullback of this year’s rally (see chart).
 

New stimulus

A bipartisan bill worth $908 billion was floated by some lawmakers but was quickly knocked back by senate majority leader Mitch McConnell. GOP (Republican) Senators are readying their own smaller $470 billion proposal. Either way, some movement on stimulus has been treated as a positive, especially when president-elect Joe Biden has said anything agreed in the ‘lame duck’ session would be a starter towards bigger spending plans once he is in office.
 

Bitcoin volatile

The leading crypto was hit again on Tuesday after touching a record high on Monday, this time sliding over $1500. The price narrowly avoided the key $20,000 level on major exchanges. BTC ended Tuesday well off its lows and so could already be on course for another leg up. Guggenheim, the $5.3 billion investment fund said it could make up to 10% of its assets available to invest in the Greyscale trust, the fund dedicated to buying Bitcoin.
 

DAY AHEAD 

*Times in GMT
00:30    AUD    Gross Domestic Product (QoQ)(Q3)     2.6 %    -7 %
07:00    EUR    Retail Sales (MoM)(Oct)         1.2 %    -2.2 %
13:15    USD    ADP Employment Change(Nov)         420 K    365 K
19:00    USD    Fed's Beige Book             REPORT