Markets Welcome Stimulus Passing
The U.S. Dollar is trading in familiar ranges that highlight its weakness in December after an eventful and turbulent holiday season in the midst of COVID.
Thus far, December has been rough for the buck, as wild swings have resulted in an additional 2.0% loss in value against Euro and other majors. The biggest event we had over the weekend was the signing of the spending & stimulus bill as President Donald Trump agreed to it.
Expect business flows to be rather quiet as we close out a very difficult year. We look forward to forecasting what is next as we get ready to work on a prediction for 2021 (good luck to us, right?). The Tempus Yearly Outlook will be available in the first weeks of January. Again, this year’s dollar weakness ultimately surpassed our own weakening estimates.
What to Watch Today…
- No major events scheduled for today
HOLIDAY HOURS THIS WEEK
December 31—8:30a to 6p EST; January 1—CLOSED; Tempus Online open 24×7.
The Mexican Peso is once again trading in stronger ranges but could see the wild movement as the year closes. It looks like markets welcome the vaccine development and distribution, with oil and energy costs starting to look rosier. Nevertheless, the Mexican economy has had a rough patch for a long time and its sensitive nature could change the tide at any moment. Thus far in December, Peso has seen the benefits of a risk-hungry world ready to put the virus behind.
Pound certainly found reason to gain as a Brexit deal finally put an end to the incessant need for learning new deadlines. As EU and U.K. forge a new type of commercial relationship, expect some issues as we figure how this deal can actually benefit both. We are still of the opinion that the separation may not bode well long-term for England as the rest of the world seeks to deal with Europe as one and London may lose some of its global financial charm.