Spot gold is up 0.26%, while silver has gained 0.53% at the start of the week during the Asian session. The sentiment is quite positive as Japan is off for Workers day, but the ASX is currently trading 0.34% higher. Also, the Shanghai Composite is performing well, surging by more than 1%.
Based on the weekend news, it has been established that US President-elect Biden will name Tony Blinken as secretary of state. Blinken has been in the office previously serving as the United States Deputy Secretary of State from 2015 to 2017.
Sky News reported on the Brexit front that the European Union believes that the Brexit deal is 95% agreed although anxiety remains. Nevertheless, issues remained in three key areas, which include governance, fisheries, and competition rules. Markets should keep a close eye on these three subjects in the week ahead.
Also, reports emerged that the United Kingdom might give regulatory approval to Pfizer-BioNTech’s COVID-19 vaccine sometime this week. That might mean that the government may begin to roll out as soon as December 2020. That would come as a welcome relief as the economy and vulnerable generations and population are getting hit hard. Any return to normalcy leading into Christmas would be welcome.
In the forex markets, Sterling Pound (GBP) starts the week climbing higher against most of the other major currencies. NZD is also performing well, and the dollar index trades about 0.13% lower. Turning attention to the commodities complex, the top-performing metal currently is palladium, which has gained 0.59%. But, aluminum, tin, and nickel all trade in the black as well.
Ahead, Evans and BoC’s Gravelle, PMI’s from the major nations, FOMC’s Daly, ECB’s Schnabel, and comments from BoE’s Haldane will determine where the market will head to next.