The market takes breath after the long rally. What opportunities do traders have today?
ECB Meeting & Press Conference
|Meetings of the European Central Bank tend to have a great impact on the euro. The regulator will announce its rate decision at 14:45 MT time on December 14.|
|At its last meeting in October, the ECB reduced purchases in half as the euro area’s economy showed its best performance in a decade. At the same time, the regulator extended the program by nine months, as inflation is still very low.|
|The ECB president Mario Draghi mentioned that some decisions may be left for December. Watch his press conference at 15:30 MT. The event is going to be a big driver of the euro. If the ECB is positive about the region’s economic and inflation outlook, the euro will rise. If Draghi emphasizes negative risks, the EUR will decline.|
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...