- UK granted emergency use authorization for Pfizer and BioNTech COVID-19 vaccine
- Disappointing ADP payrolls report
- US crude inventories fall less than expected
US stocks are swinging between small gains and losses as investors weighed the first approval of a coronavirus vaccine and the prospects of more US economic stimulus with weak ADP report. Hopes that a new coronavirus-aid bill could be unveiled soon faded after Senate Majority Leader Mitch McConnell rejected a bipartisan proposal for a $908 billion stimulus package aimed at breaking the stalemate over new stimulus in Congress. President-elect Joe Biden said in an interview with the New York Times that getting a generous stimulus package through Congress is a top priority. He also said he would not immediately cancel the Phase 1 trade deal that President Donald Trump struck with China. Meanwhile disappointing ADP report indicate that ever-increasing number of new infections and business restrictions were hampering the labor market's recovery.
US crude futures are trading nearly 3% higher at $45.86 a barrel, while the international benchmark Brent contract rose 2.75% to $48.73. US crude inventories fell by 0.679k barrels in the latest week, while analysts expected a 2.358 million drop, according to EIA report. Today's data contradicts yesterday's API report which showed 4.1 million barrels increase. Meantime, investors are waiting for OPEC+ decision on whether to delay January’s planned output increase. Elsewhere, gold futures rose 0.6% to $1,826.00/oz, while silver fell 0.4% to $23.90. EUR/USD is trading 0.2% higher at 1.2095 amid weaker dollar.
GBPUSD – pair bounced off the major support at 1.3310 and is testing 50 SMA (green line). In case buyers manage to break above it, the next resistance level to watch can be found at 1.3397. However if sellers will manage to break below the aforementioned support level, then another downward impulse towards 1.3196 level could be launched. Source: xStation5
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