- The British pound dropped sharply yesterday before recovering its losses, on rumors and headlines concerning the probability a trade deal would be agreed between the E.U. and the U.K. with time running out. If a deal is not agreed upon, both sides will be obliged to impose tariffs on imports from 1st January 2021. Both sides are publicly pessimistic but the British PM will travel to Brussels later this week for last-ditch talks in an attempt to secure a deal despite the wide divergence between their respective positions on trade.
- Forex markets have begun the week very quietly, with the exception of the British pound. The euro seems to be the strongest major currency, with the British pound looking like the weakest.
- Bitcoin has failed for several days to reach new highs at or beyond $20,000, suggesting that a major breakout beyond $20,000 is looking more unlikely to happen over the short term.
- Last-ditch talks are set to begin between the E.U. and the U.K. later this week as leaders with face to face meetings between leaders on the terms of a potential trade deal. If a deal is not agreed before the end of 2020, the U.K. will trade with the E.U. on World Trade Organization rules, meaning there will be new tariffs on imports from both sides, which will impact the GBP and to a lesser extent the EUR. The British government is publicly signaling its unwillingness to agree to a deal unless the E.U. modifies certain demands and both sides are issuing pessimistic communiques.
- Globally, new coronavirus cases are continuing to rise exponentially, with a new daily record all-time high of 688,333 confirmed cases made last Thursday.
- Last Thursday also saw a record high number of 12,834 coronavirus deaths reported globally.
- Global coronavirus deaths have increased dramatically since early October to reach a level approximately 90% higher than the peak last April. New coronavirus cases and deaths have begun to fall in the European Union, but both are currently increasing sharply in the U.S.A. A lockdown has been imposed in California as the state’s intensive care capacity has become severely strained. The U.S.A. is currently confirming more than 200,000 new cases daily and has recently seen more than 2,000 deaths per day.
- Total confirmed new coronavirus cases stand at over 67 million with an average case fatality rate of 2.29%.
- The rate of new coronavirus infections appears to now be increasing most quickly in Albania, Azerbaijan, Belarus, Belize, Brazil, Burkina Faso, Canada, Croatia, Cyprus, Cuba, Denmark, Dominican Republic, Egypt, Estonia, Georgia, Germany, Honduras, Hungary, Indonesia, Israel, Jamaica, Japan, South Korea, Latvia, Lithuania, Mali, Mexico, Moldova, Netherlands, Niger, Nigeria, North Macedonia, Pakistan, Panama, Paraguay, Portugal, Romania, Russia, Senegal, Serbia, Slovakia, Slovenia, South Africa, Sri Lanka, Sudan, Tunisia, Turkey, Ukraine, the U.K., Uruguay, and the United States.