{"id":1255,"date":"2020-12-17T13:29:15","date_gmt":"2020-12-17T16:29:15","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=1255"},"modified":"2020-12-17T14:09:55","modified_gmt":"2020-12-17T17:09:55","slug":"cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/","title":{"rendered":"Cheerful market mood amid dovish Fed, Brexit and US fiscal stimulus optimism"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1255\" class=\"elementor elementor-1255\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-73e13da elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"73e13da\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9fbf352\" data-id=\"9fbf352\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b99716a elementor-widget elementor-widget-text-editor\" data-id=\"b99716a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Markets are in a cheery mode heading into the Thursday 17<sup>th<\/sup>\u00a0December US equity cash open. Although the Fed did not opt to increase the monthly pace of asset purchases or tweak the composition of those asset purchases in last night\u2019s meeting, Fed Chair Jerome Powell was keen to reassure market participants that the Fed\u2019s ultra-accommodative monetary policy stance is not going anywhere any time soon. Meanwhile, the latest news on the Brexit front suggests the EU and UK are closing in a deal, potentially by the weekend that would avert what market participants see as a disastrous no-deal outcome at the end of the transition period on the 31<sup>st<\/sup>\u00a0of December and US Congressional leaders seem on the brink of clinching a deal on further Covid-19 fiscal aid.<\/p>\n<p>The combination of the above positives, combined with continued \u201cvaccine optimism\u201d as mass vaccination programmes get underway in the UK, US, and Canada (and soon hopefully the EU and other countries as well), continues to outweigh concerns regarding the near-term direction of the US and European (and other) economies as Covid-19 cases pick up; the US set a grim milestone on Wednesday of a new record daily Covid-19 death count of more than 3500. Meanwhile, as yesterday\u2019s US Retail Sales numbers for November showed, the spread of Covid-19 is already taking a serious toll on the economy.<\/p>\n<p>But \u201cforward looking\u201d markets do not seem overly bothered by any of this; ahead of the US cash open, <a href=\"https:\/\/bit.ly\/35WieMs\" target=\"_blank\" rel=\"noopener\">S&amp;P 500<\/a> futures trade with gains of around half a percent and are comfortably above 3710 and European equities look similarly buoyant with the Stoxx 600 up just under half a percent. Meanwhile, commodity markets are also looking perky with <a href=\"https:\/\/bit.ly\/3kU6Wwc\" target=\"_blank\" rel=\"noopener\">WTI<\/a> surpassing $48.00\/barrel since the 4<sup>th<\/sup>\u00a0of March, industrial metals up and precious metals broadly bid (aided by the prospect of reassurance from the Fed of its continued dovish stance); spot <a href=\"http:\/\/bit.ly\/2ZsFzPL\" target=\"_blank\" rel=\"noopener\">gold<\/a> rallied to fresh month highs above $1880\/oz (and is up more than 5.5% on the month), while spot <a href=\"http:\/\/bit.ly\/319C7df\" target=\"_blank\" rel=\"noopener\">silver<\/a> has continued its recent surge and surpassed $25.50 (and is now up more than 13.5% on the month). In FX markets, the safe-haven USD is under pressure and the <a href=\"https:\/\/bit.ly\/37m9dMU\" target=\"_blank\" rel=\"noopener\">Dollar Index<\/a> (DXY) fell below 90.00 for the first time since April 2018 and is eyeing a move towards 2018 lows around 88.25 (more below).<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bf19bc1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bf19bc1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f9d2638\" data-id=\"f9d2638\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fc42a37 elementor-widget elementor-widget-text-editor\" data-id=\"fc42a37\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USD and the Fed<\/strong><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-36943f1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"36943f1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e09f2cd\" data-id=\"e09f2cd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6465cb6 elementor-widget elementor-widget-image\" data-id=\"6465cb6\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"724\" height=\"348\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/GettyImages-477829529.jpg\" class=\"attachment-large size-large wp-image-1269\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e7870fc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e7870fc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2d89486\" data-id=\"2d89486\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e3e1c65 elementor-widget elementor-widget-text-editor\" data-id=\"e3e1c65\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>As noted, the risk on markets mood plus reassurance from Fed Chair Powell that the bank\u2019s ultra-accommodative stance is going nowhere is keeping the dollar bear trend intact for now. The US dollar is the underperforming G10 currency so far today and DXY is now below 90.00. US data will be in focus at 1330GMT\/0830EDT but is unlikely to distract too much from the market\u2019s broader themes. As a recap of last night\u2019s Fed policy meeting;<\/p>\n<ul>\n<li>The Fed maintained the Fed Funds Rate at 0.00-0.25% and IOER at 0.10% as expected.<\/li>\n<li>The Fed extended its swap lines and repo facility for foreign and international monetary authorities through September 30th, 2021.<\/li>\n<li>The Fed maintained the pace of its asset purchase programme ($80B per month in treasuries and $40B per month in agency-backed securities) but added new guidance that stated purchases would continue at the current rate until \u201csubstantial further progress has been made on maximum employment and price stability goals\u201d<\/li>\n<li>The Fed opted not to extend the weighted average maturity of its purchases (some had speculated that they might do this, hence the initial \u201chawkish\u201d reaction to the rate decision). Some market commentators think they will wait until January to do this so that the Fed has more time to observe what happens with the pandemic and fiscal stimulus.<\/li>\n<li>The Fed\u2019s new dot plot maintained its projection for the Fed Funds Rate to remain at 0.0-0.25%, though one FOMC member projects a rate hike in 2022 (vs none in the last dot plot) and five project a rate hike in 2023 (vs four in the last dot plot).<\/li>\n<li>In the Fed\u2019s new economic projections, its GDP growth forecasts for 2020-2022 were upgraded, but downgraded slightly in the long run, the unemployment rate projections until 2023 were lowered and inflation forecasts lowered for 2020 but increased for 2021 and 2022.<\/li>\n<li>Fed Chair Powell said in the press conference that the Fed has the flexibility to provide more accommodation which he hinted could come via tweaks to the bank\u2019s QE programme (as some had speculated they might do at last night&#8217;s meeting). His tone on the outlook for Fed policy over the coming years was generally dovish and triggered a dovish reversal of the initial hawkish reaction to the meeting.<\/li>\n<\/ul>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-90811c0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"90811c0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f2946e3\" data-id=\"f2946e3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-800465c elementor-widget elementor-widget-text-editor\" data-id=\"800465c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>GBP, Brexit, Bank of England<\/strong><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-adc8f0d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"adc8f0d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-08b53f5\" data-id=\"08b53f5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0a45f35 elementor-widget elementor-widget-image\" data-id=\"0a45f35\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"737\" height=\"416\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/GettyImages-640864097.jpg\" class=\"attachment-large size-large wp-image-1270\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c53ee94 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c53ee94\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-39b2c0a\" data-id=\"39b2c0a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c0ece47 elementor-widget elementor-widget-text-editor\" data-id=\"c0ece47\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>GBP is one of the best performing G10 currencies on Thursday, as hopes that a Brexit deal might be reached ahead of the week boost optimism. <a href=\"http:\/\/bit.ly\/2Zn4HaM\" target=\"_blank\" rel=\"noopener\">GBPUSD<\/a> has crossed above the 1.3600 level for the first time since May 2018, up roughly 0.7% on the day, and <a href=\"http:\/\/bit.ly\/2Lg9zs6\" target=\"_blank\" rel=\"noopener\">EURGBP<\/a> is back below 0.9000.<\/p>\n<p>In terms of the latest on Brexit, EU Brexit Negotiator Michelle Barnier said this morning that there has been good progress, but the last stumbling blocks remain, and EU officials (confirming what sources earlier hinted) said that a trade deal is possible by the end of the week. Meanwhile, the European parliament has set a hard deadline of midnight on Sunday for a trade deal to be presented to them, as any later would not allow for sufficient time for ratification prior to the end of the year. This might end up being a positive for negotiations as increased time-pressure is likely to increase the pressure on the two sides to close the remaining gaps.<\/p>\n<p>The Bank of England rate decision was largely ignored, as expected, with uncertainty over the future trading relationship between the UK and EU tying their hands. For reference, the bank held interest rates steady at 0.1%, left its QE programme at \u00a3845B and noted that its existing policy stance remains appropriate.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-df50fe4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"df50fe4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-34ebb01\" data-id=\"34ebb01\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-28229b8 elementor-widget elementor-widget-text-editor\" data-id=\"28229b8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>Rest of G10 FX<\/strong><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fa161dc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fa161dc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6c732f7\" data-id=\"6c732f7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-abfb027 elementor-widget elementor-widget-text-editor\" data-id=\"abfb027\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>AUD and NZD sit alongside GBP amongst the top three best performing G10 currencies on the day, boosted as a result of their \u201crisk-sensitive\u201d characteristics amid the broader risk-on market feel, but also as a result of some positive domestic factors. Starting with Australia; November jobs data was out last night and was much better than expected, with the unemployment rate dropping to 6.8% (exp. 7.0%), the economy adding 90K jobs (exp. 50K) and the participation rate rising to 66.1% (exp. 66.0%). <a href=\"http:\/\/bit.ly\/2yFD0hu\" target=\"_blank\" rel=\"noopener\">AUDUSD<\/a> this morning broke above 0.7600 for the first time since June 2018.<\/p>\n<p>Meanwhile, across the Tasman Sea, New Zealand Q3 GDP growth was strong at 14% QoQ (exp. 13.5%) and the New Zealand Finance Minister essentially said that the government is not worried about recent NZD appreciation (which he said reflects a better-than-expected economic recovery) but is worried about the country\u2019s debt levels (which might lead to the government putting more pressure on the RBNZ not to facilitate excess levels of borrowing through its ultra-easy monetary policy stance). <a href=\"http:\/\/bit.ly\/2KflF5J\" target=\"_blank\" rel=\"noopener\">NZDUSD<\/a> has advanced above the 0.7150 level for the first time since April 2018.<\/p>\n<p>USD weakness is also giving EUR, CAD and even safe-haven JPY a boost; <a href=\"http:\/\/bit.ly\/2YAQOVh\" target=\"_blank\" rel=\"noopener\">EURUSD<\/a> is above 1.2200 again as traders eye Brexit developments and ECB speakers later in the afternoon and <a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\" rel=\"noopener\">USDCAD<\/a> is back at the 1.2700 level and just above multi-year lows, with both pairs also keeping an eye on incoming data.<\/p>\n<p>Safe-haven JPY is outperforming its fellow FX safe-havens CHF and USD, perhaps given some bearish developments in Japan (record daily Covid-19 cases and a small earthquake this morning). The swiss franc is second from bottom spot in the G10 and only very marginally firmer against the buck following this morning\u2019s SNB rate decision, where the bank left policy unchanged as expected (rates still at -0.75%) and urged that it would continue to intervene in FX markets despite the US\u2019 designation of the country as an FX manipulator yesterday. <a href=\"http:\/\/bit.ly\/2OJjKKR\" target=\"_blank\" rel=\"noopener\">USDJPY<\/a> has slipped down towards 103.00 and <a href=\"http:\/\/bit.ly\/31pdEAU\" target=\"_blank\" rel=\"noopener\">USDCHF<\/a> is subdued beneath 0.8850.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c33b6d3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c33b6d3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3fef39b\" data-id=\"3fef39b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1e3efdc elementor-widget elementor-widget-text-editor\" data-id=\"1e3efdc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>Coming Up<\/strong><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3d10a83 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3d10a83\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d283e3e\" data-id=\"d283e3e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-abfc928 elementor-widget elementor-widget-text-editor\" data-id=\"abfc928\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The main focus of the rest of the day will remain on the themes of Brexit and US fiscal stimulus and whether further progress towards deal on each can be made, but we do also have some important US data points prior to the US equity cash open, as well as some BoE and ECB speakers (see calendar below).<\/p>\n<p>1330GMT\/0830EDT, US Housing Data (Nov):<\/p>\n<ul>\n<li>Building Permits MoM prev. -0.1%<\/li>\n<li>Building Permits exp. 1.550M, prev. 1.544M<\/li>\n<li>Housing Starts MoM prev. 4.9%<\/li>\n<li>Housing Starts exp. 1.530M, prev. 1.530M<\/li>\n<\/ul>\n<p>1330GMT\/0830EDT, US Weekly Jobless Claims:<\/p>\n<ul>\n<li>Initial Jobless Claims (w\/e 12th Dec) exp. 800K, prev. 853K<\/li>\n<li>Continuing Jobless Claims (w\/e 5th Dec) prev. 5,757K<\/li>\n<\/ul>\n<p>1330GMT\/0830EDT, US Philly Fed (Dec):<\/p>\n<ul>\n<li>Manufacturing Index exp. 19.0, prev. 26.3<\/li>\n<li>Business Conditions prev. 44.3<\/li>\n<li>CAPEX Index prev. 25.50<\/li>\n<li>Employment prev. 27.2<\/li>\n<li>New Orders prev. 37.9<\/li>\n<li>Prices Paid prev. 38.90<\/li>\n<\/ul>\n<p>1530GMT\/1030EDT, Bank of England Monetary Policy Committee Member Broadbent gives a speech on COVID and its effect on spending<\/p>\n<p>1600GMT\/1100EDT, US Kansas City Fed (Dec):<\/p>\n<ul>\n<li>Composite Index prev. 11<\/li>\n<li>Manufacturing Index exp. 20, prev. 20<\/li>\n<\/ul>\n<p>1600GMT\/1100EDT, ECB Governing Council Member Schnabel participates in a regular exchange of views with German economists on the coronavirus (COVID-19) organised by German Ministry of Finance<\/p>\n<p>1600GMT\/1100EDT, ECB Governing Council Member Hern\u00e1ndez de Cos participates in the pro-RAE Foundation meeting board<\/p>\n<p>1730GMT\/1200EDT, ECB Governing Council Member de Guindos participates in the pre-recorded launch event of the book \u201cThe Economics of Monetary Unions \u2013 past experiences and the Eurozone\u201d edited by Juan E. Castaneda, Alessandro Roselli and Geoffrey E.Wood<\/p>\n<p>2145GMT\/1845EDT, New Zealand Trade Numbers (Nov) (NZD):<\/p>\n<ul>\n<li>Exports prev. 4.78B<\/li>\n<li>Imports prev. 5.29B<\/li>\n<li>Trade Balance MoM exp. 250M, prev. -1M, YoY prev. 2,190M<\/li>\n<\/ul>\n<p>2330GMT\/1830EDT, Japan Inflation (Nov):<\/p>\n<ul>\n<li>CPI Nationwide prev. -0.4%<\/li>\n<li>CPI Core Nationwide exp. -0.9%, prev. -0.7%<\/li>\n<\/ul>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Markets are in a cheery mode heading into the Thursday 17th&nbsp;December US equity cash open. Although the Fed did not opt to increase the monthly pace of asset purchases or tweak the composition of those asset purchases in last night\u2019s meeting, Fed Chair Jerome Powell was keen to reassure market participants that the Fed\u2019s ultra-accommodative [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1262,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,8,5,6,2,13],"tags":[52,56,44,45,54,24,18,42,20,28,43,50,53,46,49,47,40,31,55,22,48],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cheerful market mood amid dovish Fed, Brexit and US fiscal stimulus optimism - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cheerful market mood amid dovish Fed, Brexit and US fiscal stimulus optimism\" \/>\n<meta property=\"og:description\" content=\"Markets are in a cheery mode heading into the Thursday 17th&nbsp;December US equity cash open. Although the Fed did not opt to increase the monthly pace of asset purchases or tweak the composition of those asset purchases in last night\u2019s meeting, Fed Chair Jerome Powell was keen to reassure market participants that the Fed\u2019s ultra-accommodative [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-17T16:29:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-17T17:09:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/GettyImages-1215016051-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"323\" \/>\n\t<meta property=\"og:image:height\" content=\"189\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joel Frank\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\"},\"author\":{\"name\":\"Joel Frank\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/ac77fbbe0e8ed23d3dce1372e3663b96\"},\"headline\":\"Cheerful market mood amid dovish Fed, Brexit and US fiscal stimulus optimism\",\"datePublished\":\"2020-12-17T16:29:15+00:00\",\"dateModified\":\"2020-12-17T17:09:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\"},\"wordCount\":1622,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/youtrading.com\/en\/#organization\"},\"keywords\":[\"AUDUSD\",\"BoE\",\"Brexit\",\"Covid-19\",\"ECB\",\"EURGBP\",\"EURUSD\",\"Fed\",\"GBPUSD\",\"GOLD\",\"Jerome Powell\",\"Michelle Barnier\",\"NZDUSD\",\"S&amp;P500\",\"Silver\",\"Stoxx 600\",\"US DOLLAR INDEX\",\"USDCAD\",\"USDCHF\",\"USDJPY\",\"WTI\"],\"articleSection\":[\"Commodities\",\"Economy\",\"Forex\",\"Index\",\"Markets\",\"Stocks\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\",\"url\":\"https:\/\/youtrading.com\/en\/cheerful-market-mood-amid-dovish-fed-brexit-and-us-fiscal-stimulus-optimism\/\",\"name\":\"Cheerful market mood amid dovish Fed, Brexit and US fiscal stimulus optimism - 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