Here is what you need to know on Monday, October 12:
Hopes for a US coronavirus stimulus package led the way at the end of the week. The greenback came under strong selling pressure, ending the week with sharp losses against most major rivals. White House advisor Larry Kudlow said that US President Donald Trump proposed a $1.8 trillion stimulus package that includes checks to individuals and an extension of the Paycheck Protection Program.
Wall Street closed in the green, although gains were modest, as certain caution prevailed. US Treasury yields,
Headlines published over the weekend, however, may pour some cold water on the market’s upbeat mood, as House Speaker Nancy Pelosi and US Treasury Secretary Steven Mnuchin talked over the weekend, but were unable to clinch a deal. The mood can turn sour at the weekly opening, although a holiday in the US and Canada may result in limited market’s activity.
In the Brexit front, yet another week ended without progress. UK PM Boris Johnson set October 15 as the last day to achieve a trade deal and menaced to walk away from the negotiation table if a deal is not done by then. Over the weekend, UK PM Johnson spoke with French President Macron, asking for intensive talks to “bridge significant gaps” remaining.
A steep rise in coronavirus cases in Europe spurs concerns. France reported a record of 27K new cases, while Spain declared an emergency state in Madrid. In Germany, infections jumped by the most since April.
Gold surged on dollar’s sell-off, ending the week around $1,930 a troy ounce its highest for October.
Crude oil prices were boosted at the end of the week by soaring equities, but also amid a strike from Norwegian oil firms. The black gold retreated ahead of the weekly close as Norway oil workers reached a deal to end the strike.
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Credit: FX Street