Archives of “November 2020” month

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Janet Yellen Now Favored To Become Treasury Secretary

  
  Analysis

President-elect Biden is expected to name some of Cabinet picks on Tuesday,

President-elect Joseph R. Biden Jr.’s transition team will officially announce its first cabinet appointments on Tuesday, said Ron Klain, Mr. Biden’s incoming White House chief of staff, although he declined to say which ones.

The names of at least three expected cabinet appointments were released on Sunday night by people close to the decision process, including Anthony J. Blinken for secretary of state, Jake Sullivan as national security adviser and Linda Thomas-Greenfield as ambassador to the United Nations. – NY Times

Brexit: Rumours of a “temporary deal” in the works to be agreed this week

  
Analysis, Forex

Tweet by Dave Keating, Brussels correspondent for France 24

Brexit

I’m hearing rumours we may see an emergency “temporary #Brexit deal” agreed this week to avoid #NoDeal happening in midst of #COVID19.

If this is true, it’s important to point out that this will *not* be a “deal”.

It’s essentially an extension. The problem doesn’t go away.

Just something to take note. This could be what all the murmurs and whispers were referring to since the weekend.
It seems like this may allude to an agreement on the supposed 95% of the deal, with any agreement on the remaining 5% i.e. fisheries, governance, level playing field is likely to be postponed/extended pending further negotiations.
That brings us back to what I was referring to earlier in the day here:

Otherwise, we are likely to see the can kicked down the road again and I firmly believe that at the end of the day, both sides will fall back on some technicality to sell a compromise.

A skinny deal excluding the three key outstanding issues (instead postponing them) will allow Boris Johnson to “technically” stick with a Brexit on 1 January 2021 while the EU doesn’t have to move its red lines and be made to look worse off from any deal.

EUR/USD touches 1.1900 as dollar eases lower on the session

  
Analysis, Forex

The dollar is keeping weaker across the board so far today

EUR/USD D1 23-11

EUR/USD is once again testing the 1.1900 handle, reaching a high of 1.1906, as the dollar is seen weaker so far in European trading today.
Risk remains in a better spot with European equities posting a modest advance of around 0.5% to 0.7% currently while S&P 500 futures are also higher by 0.6%.
But the movement out of the dollar looks more flow-based than any reaction to risk, with the greenback sitting as the weakest performer among the major currencies.
Even with 10-year Treasury yields up 2.5 bps to 0.849%, USD/JPY is down to 103.70.
Looking back to EUR/USD, buyers will have a key test ahead of the close today in trying to keep above the 1.1900 handle. The 9 November pop on the vaccine news saw the high touch 1.1920 and a push above that will start to bring 1.2000 back into the picture again.
Otherwise, a failure to hold another break above 1.1900 may lead to some exhaustion as the pair continues to consolidate just below that.
Elsewhere, AUD/USD is still settling around 0.7320-30 levels with short-term resistance at 0.7340 still holding. GBP/USD is off earlier highs of 1.3380 to sit around 1.3350-60 levels while NZD/USD is still flirting with a retest of the December 2018 high of 0.6969.
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