U.S. Congress Approved The New Coronavirus Aid Package
Yesterday, traders were focused on the news about the new COVID-19 strain which emerged in Britain. However, their attention has gradually shifted towards the new coronavirus aid package.
On Monday, the U.S. Congress approved the new $892 billion aid package, providing additional support to the economy at a time when it is under pressure from the second wave of the virus.
Judging by the recent dynamics of the safe-haven U.S. dollar, yesterday’s coronavirus-related panic has come to an end.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is currently trying to get to the test of the important support level at 90 after failing to settle above the resistance at 91 during the previous trading session.
Meanwhile, S&P 500 futures are gaining some ground in premarket trading as traders believe that the economy will soon feel the positive impact of the new coronavirus aid package.
Brexit Drama Continues As EU Rejects Latest Concessions From UK
According to recent reports, EU did not accept Britain’s concessions on fisheries, which remain the main stumbling block on the way to the deal.
The President of the European Commission Ursula von der Leyen and UK Prime Minister Boris Johnson discussed Brexit and the new coronavirus strain on Monday, and it looks like no progress was made.
A no-deal Brexit will put pressure on global markets but EU and UK will likely use all opportunities to negotiate a compromise deal. At this point, it looks that negotiations will continue after Christmas.
Third-Quarter GDP Growth Rate Exceeds Expectations
The U.S. has just released the final reading of the third-quarter GDP Growth Rate report. On a quarter-over-quarter basis, GDP grew by 33.4% compared to analyst consensus of 33.1%. This report highlighted the strength of the rebound in the previous quarter.
Later, traders will have a chance to look at Existing Home Sales for November. Analysts expect that Existing Home Sales declined by 1% month-over-month after growing by 4.3% in October.
For a look at all of today’s economic events, check out our economic calendar.