Promising results of Moderna's vaccine failed to spark a long-lasting rally on the equity markets. Investors' attention was quickly drawn back to the coronavirus pandemic and returning lockdowns. New set of PMI indices will provide an update on the moods within the economy. Meanwhile, Brexit talks are seen entering "another" crucial phase.
DE30 remains stuck below the 13,250 pts resistance zone. Return of coronavirus restrictions in Europe has dented moods on the equity markets and even another upbeat vaccine announcement was not enough to break a gridlock. Flash PMIs for November (Germany - Monday, 8:30 am GMT) will show damage done by such decisions. Deterioration is expected in both manufacturing and services sectors.
Main currency pair will also get a chance to move on PMI releases. However, EURUSD traders will also look towards minutes releases from two major central banks - Fed (Wednesday, 7:00 pm GMT) and ECB (Thursday, 12:30 pm GMT). Fed remained on hold and decided to wait for December's forecasts before taking action. ECB also refrained from taking more actions but hinted that asset purchases could be increased in December.
Brexit talks are seen entering another crucial phase as negotiators from EU and UK race to seal the deal before it is too late. EU member countries urged European Commision to outline plans for a no-deal exit in a sign that a growing number of countries are worried that the EU-UK trade deal may never arrive. Pound is likely to experience some short-term volatility on headline news as well as on flash release of November's PMIs (Monday, 9:30 am GMT).
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