IEA says that resurgence in coronavirus cases slows oil demand rebound
IEA slashes oil demand forecast as fresh lockdowns temper with the recovery outlook in Q1
The fear is that the vaccine timeline runs into trouble and tighter restrictions may still be needed in Q2 or perhaps even Q3 if things go awry in the coming months.
Heads up: Yellen's confirmation hearing for Treasury secretary later today
Guess who's back
The key risk event to watch in the market today will be Janet Yellen's confirmation as Treasury secretary later today. She will be testifying in Congress at around 1500 GMT and her comments on the market - especially on the dollar - will be heavily scrutinised.
German chancellor Merkel reportedly wants to extend lockdown measures until 15 February
Bild reports with the headline
I don't think this is much of a surprise given the current virus situation in Germany but just be aware that the announcement (alongside other potential measures) could come as soon as later today, as warned earlier .
Dollar slips on more positive risk tones to start the session
The dollar and yen are the laggards in trading so far today
This comes amid a backdrop of a more positive open in European equities with S&P 500 futures also seen up by 0.8% as we get things going on the session.
The risk-on vibes carry over to Europe
- Eurostoxx +0.6%
- Germany DAX +0.6%
- France CAC 40 +0.5%
- UK FTSE +0.6%
- Spain IBEX +0.8%
A solid start as the market keeps a more positive risk push to get the session underway. 10-year Treasury yields are up 2.5 bps to 1.109% and the overall mood is continuing to pin
Easter to provide another Christmas fiasco for UK virus restrictions?
UK prime minister, Boris Johnson, is said to target easing virus restrictions by Good Friday i.e. 2 April to allow families some small contact again
Times Radio's chief political commentator, Tom Newton Dunn, tweets:
You may have seen and read report that talk about the 'yield curve'. You may know that the phrase has something to do with bonds, but otherwise perhaps you shrugged your shoulders and moved on. Understanding why investors look at the yield curve is one part of the puzzle that investors look at when
Disclaimer: The trade in Forex and Cryptocurrencies can generate significant benefits but also involves a risk of partial or total loss of funds and should be considered by the initial investors. We recommend you that you read our terms and conditions and the disclaimer page before making any investment. The clients should be aware of their individual capital gain tax liability in their country of residence. This website is independent of forex and crypto brokers featured on it. Before trading with any of the brokers, potential clients should ensure they understand the risks and verify that the broker is licensed. The website does not provide investment services or personal recommendations to clients to trade forex and crypto options.
USA regulation notice: Cryptocurrencies companies are not regulated within the United States. These companies are not supervised, connected or affiliated with any of the regulatory agencies such as the Commission of Futures of Commodities (CFTC), National Futures Association (NFA), Securities Commission (SEC) or Regulatory Authority of the Financial Industry (FINRA).
Disclosure of Risk: fxrobotix.com don't accepts responsibility for loss or damage as a result of trust in the information contained in this website; This includes educational material, automatic operations, and graphics, and analysis. Please remember, the user has to be aware of the risks associated with trading in financial markets. Profits may vary according to market conditions and each user. The profits and results, we recommend you read the terms and conditions. In case the potential client does not understand the risks involved, he/she should seek advice or consultation from an independent advisor. If the potential client still does not understand the risks involved in trading in any financial instruments, he/she should not trade at all.