Key Points:
Risk sentiment turns positive on proposed stimulus talks
USD weaker as DXY back to support at 92.20
BTC reaches 18200 for first time since Dec 2017
The Nasdaq bounced back during the US session as Tesla pushed to new ATH and news that the Democrats and Republicans are planning to get back to the table to discuss fiscal stimulus. Both S&P500 and DJ are closing up on the day but to a lesser extent and the DXY has fallen back to yesterdays lows at 92.20 after rising as high as 92.75 earlier in the day. US jobless claims saw a rise for the first time in 5 weeks reading 742K from 700K expected, which may indicate things to come as some states batten down the hatches once again. Brexit chatter has dominated the headlines with Cable back around 1.3270 from 1.3195 earlier, likewise EUR has followed the same trajectory basing around 1.1820 and moving back to yesterdays highs here at 1.1880/90. Aussie job data was better than expected yesterday but as risk slipped so did the AUD but once again found buyers on the dip to 0.7255/60 and with risk moving back higher we now sit back at 0.7295. Bitcoin remains volatile having reached back through 18000 there was a slump to key support at 17300 and then subsequent retrace back up to 18200 in line with risk sentiment. Yet again Gold is not reading from the same page maybe losing some of its shine as other assets see investors piling in. Overall the market remains long Gold but with 1850 support tested three times we either bounce back through 1900/1910 or the next time down we could see a sharp drop towards 1800/1820. Virus news shows that UK and Italy numbers are rising with the UK two weeks into lockdown light and planning to come out on December 3rd looking unlikely to have had made much of a dent in the escalation. In the US numbers are off this week’s highs but still adding 165K per day with approximately 3 million Americans currently infected. JPM data research showed a marked decline in credit card activity which could indicate further slowing of any green shoots in the coming data with airlines, gas and hotel occupancy all hit. Asia’s highlight ahead will be PBoC rate decision and preliminary retail sales for Australia. In Europe we see more UK data by way of retail sales but Brexit will be the real price driver once again.