Thread: ForexMart's Forex News

November 25. US jobless claims unexpectedly rose over the week

According to the US Department of Labor, the number of initial applications for unemployment benefits for the week ended November 21, increased by 30 thousand compared with the revised figure of the previous week to 778 thousand applications.

Analysts had expected a decline of 12 thousand applications from the initial figure last week – to 730 thousand. The initial figure of the previous week was revised to 748 thousand from 742 thousand.

The total number of Americans receiving unemployment benefits in the United States fell by 299 thousand from the revised figure of the previous week to 6.071 million.

November 30. US exchanges are falling as part of the correction after a prolonged rise

Major US stock indices are declining on Monday in a correction, while remaining on track for their highest monthly gain since April.

The Dow Jones Industrial Average fell 0.93% to 29,633.02 points, the NASDAQ high-tech companies index – 0.05%, to 12,205.85 points, the S&P 500 broad market index – 0.59%, to 3,616.91 pips.

The main factor influencing investor sentiment was news about vaccines. Since early November, Pfizer, Moderna and AstraZeneca have reported successful trials of their vaccine samples with high efficacy. In addition, the positive dynamics in the US markets in November was also caused by a decrease in political uncertainty after the presidential elections.

December 02. Visa will issue the world's first cashback credit card in bitcoins

Visa is partnering with cryptocurrency startup BlockFi to release the world's first cashback credit card in bitcoins. The card will be issued by Evolve Bank with the assistance of credit card startup Deserve.

1.5% will be returned from each card transaction. Cashback will be accumulated, then automatically converted into bitcoins and credited to your BlockFi account.

In addition to the credit limit with a specific interest-free period, BlockFi will give customers a welcome bonus of $250 in bitcoins if the amount spent on the card exceeds $3000 in the first three months.

The card will be metallic, similar to the Apple card that the company has jointly released with Goldman Sachs. Annual maintenance for a new VISA credit card will cost $200. The card will initially only be available in the US.

December 04. Crude Oil rises to eight-month high as OPEC + deal

Brent oil prices jumped to $49.86 per barrel after the announcement of the results of the OPEC + meeting. Thus, the asset has renewed its maximum for the last eight months.

The organization has decided to increase production by 500,000 barrels per day starting in January in response to rising prices and improved demand forecasts for 2021. The demand for hydrocarbons is expected to recover quickly thanks to progress in the development of a vaccine against COVID-19.

However, this is only a quarter of the 2 million bpd increase the group originally expected in January.

An additional stimulus for growth is the fact that OPEC keeps its plans regarding the need to further restrict oil production unchanged.

December 08. UK starts vaccination, US buys vaccines

December 8 could be a historic day in the fight against the coronavirus pandemic as the United Kingdom officially began vaccination today. The UK uses a vaccine developed by Pfizer and BioNTech and has reportedly purchased 40 million doses. Pfizer said it could produce 50 million doses this month; production volume in 2021 is not yet clear.

Donald Trump's government purchased 100 million doses of Pfizer's vaccine in advance (enough to vaccinate 50 million people, since each person needs two doses every few weeks). Pfizer then offered a contract for the supply of more vaccines, which Trump refused.

The current agreement between the US government and Pfizer allows for the purchase of up to 500 million doses in the second half of 2021. However, this number is optional. As other countries place their own vaccine orders and Pfizer has a production logistics scheme, the US may not be able to purchase another 500 million doses, even if it wants to.

The question of when and how Americans will be vaccinated is critical, as the country has reached a record 102,000 hospitalizations and the highest weekly death rate. The United States has recorded over 15.3 million cases (200,000 new just yesterday) and over 290,000 Covid-19-related deaths.

The situation with coronaviruses in Europe is starting to stabilize thanks to November lockdowns. France, Spain, Italy, the United Kingdom and Germany are seeing significant declines in the number of Covid-19 cases. Russia is currently the largest coronavirus hotspot outside the US, outperforming even India in its daily statistics.

December 09. Brexit talks and coronavirus vaccinations

The term of negotiations between the UK and the European Union is coming to an end, but the countries have not yet reached a new trade agreement. British Prime Minister Boris Johnson traveled to Brussels today to have a business dinner with European Commission President Ursula von der Leyen and try to find common ground.

Meanwhile, the first alarming news of the effects of the coronavirus vaccine has arrived. Pfizer-BioNTech has begun to vaccinate UK citizens this week, and a couple of mild allergic reactions have already been reported. British health authorities are now reporting that allergy sufferers should refrain from vaccinations.

In addition, a third vaccine from the Chinese pharmaceutical company Sinopharm has appeared, which claims to be highly effective (86%), which is confirmed by data from the UAE. The development of additional vaccines is likely to be an important step in the fight against coronavirus.

As a reminder, the US and the European Union have already reserved drugs produced and planned for production in the coming months by Pfizer and Moderna. Thus, the rest of the companies that developed vaccines will meet the needs of other countries.

December 10.2020 - USA, coronavirus and latest economic reports

In the US, the November inflation report was published, which beat the forecast at 0.2%, as well as weekly data on jobless claims, which disappointed investors. The labor market situation in the United States is deteriorating due to the ongoing Covid-19 outbreak.

By the end of the week, 70 million people infected with coronavirus will be registered in the world. In the United States, there are more than 15.8 million patients, of whom more than 296,000 have died. The number of hospitalizations in the country has reached the highest ever.

In the EU, the number of new cases is gradually decreasing. A notable exception is Germany, which despite the lockdown, where more than 20,000 new cases of Covid-19 are detected daily. Brazil, India and Russia also continue to be hit hard by the virus.

Meeting of the European Council: 2021 budget

The last meeting of the European Council in 2020 began yesterday. The main topic of discussion is the budget for the next year. At the end of the meeting, it became known how the European Union will spend the money and whether it will be able to allocate enough funds for the Recovery Fund - a special section of the budget dedicated to combating the economic damage from the coronavirus pandemic.

Poland and Hungary have previously questioned the future of the Recovery Fund. The two most right-wing EU countries had a problem with a provision in the funding bill that linked raising funds with respect for the rule of law. Both Poland and Hungary have come under criticism from the EU in recent years for problems in the judicial system, as well as freedom of speech and press. Fearing that this policy would leave them without EU incentives, Poland and Hungary said they would veto the bill.

However, other EU countries have forced these countries to pass a bill and budget plan totaling 1.8 trillion euros. The compromise was due to the clarification that respect for the rule of law would not be retroactive. In other words, Poland and Hungary (or any other EU member state violating this principle) can only be punished for future offenses, and not for what they have already done.

The EU Council summit disappointed anyone hoping for news of Brexit. The question that the transition period ends in less than three weeks is not on the agenda. The UK and the EU are still in talks, Boris Johnson and Ursula von der Leyen said earlier that they have until Sunday to find a compromise. The EU has already developed guidelines for the negative scenario.

December 15. Industrial production in the US in November grew better than forecast

According to the report of the US Federal Reserve System, industrial production in November increased by 0.4% versus the previous month, when the indicator was noted at the level of 0.9%.

At the same time, the volume of production is still 5% below the pre-crisis level. Analysts polled by Reuters were expecting an increase of 0.3%.

In annual terms, industrial production in November fell by 5.5%, and in October – by 5%.

Manufacturing production in November increased for the seventh month in a row – by 0.8% versus October. The forecasts assumed an increase in the indicator by 0.3%. In the mining industry, production increased by 2.3%, electricity generation decreased by 4.3%.

Capacity utilization in the US increased to 73.3% in November from 73% a month earlier. Analysts on average predicted a decline to 72.9%.

December 16. Bitcoin price has updated a new all-time high

The value of the most popular cryptocurrency, bitcoin, grows on Wednesday evening, exceeding the maximum level of December 2017 ($ 20,042) and updating a new all-time high at $ 20,535.

Bitcoin, like other cryptocurrencies, has risen sharply since October. Digital currencies are rising in value amid optimism in global markets and expectations that the Covid-19 pandemic will be brought under control thanks to the emergence of vaccines against coronavirus infection.

Additional support for Bitcoin is provided by a sharp weakening of the US dollar in the world market.