Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in Australian shares the smart way. Discover ThinkTrader today.

Open Shares Account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your investing knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

 
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Negative Balance Protection

Trade with peace of mind. Never lose more than what you deposited, no matter what the market conditions.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Stocks, GBP extend gains amid Brexit deal hopes ahead of FOMC

Fawad Razaqzada Fawad Razaqzada 15/12/2020
Stocks, GBP extend gains amid Brexit deal hopes ahead of FOMC Stocks, GBP extend gains amid Brexit deal hopes ahead of FOMC
Stocks, GBP extend gains amid Brexit deal hopes ahead of FOMC Fawad Razaqzada
It looks like investors are once again ignoring the impact of COVID restrictions and lockdowns, focusing instead on the implication of vaccines on travel and the potential return of normalcy in 2021, as well as the potential for further dovish rhetoric from central banks. Meanwhile, chatter that the UK and EU were on the verge of potentially agreeing to a Brexit deal also helped to soothe some nerves.  The insatiable appetite for risk thus remains high, although that’s not to say haven assets are doing badly.

In fact, as the dollar continues to fall, buck-denominated metals are shining brightly today, not least silver which is on the verge of a big technical breakout. European stock indices were mostly higher, although US indices were giving back some of their earlier gains at the time of writing. The weaker dollar was providing a boost for currency pairs such as the GBP/USD, which has found further support on renewed Brexit-deal hopes, and the AUD/USD, which has been lifted further by stronger Chinese industrial production and retail sales data published overnight.

As the coronavirus restrictions and ongoing Brexit uncertainties are going to weigh on short-term economic activity, central bank heads at this week’s key policy meetings are all likely to provide assurances that further support will be provided if needed and that the current loose policy stances will remain in place for as long as necessarily.

Fed weighs short-term risk against vaccine-boosted 2021 outlook

As far as the US Federal Reserve is concerned, well it is most likely going to keep its policy largely unchanged on Wednesday but make subtle changes to keep the stock market bulls happy. Like the ECB, it will undoubtedly ramp up its dovish rhetoric and emphasise the need for more fiscal support due to the still-deteriorating pandemic. Indeed, while the outlook for 2021 has improved due to the rollout of the coronavirus vaccine, the short-term picture has deteriorated. But I reckon that if the Fed were to make any changes, it would be shifting the bulk of its bond-buying to longer maturities given the recent rises in bond yields – all in order to keep long-term yields low. But if the Fed refuses to do this, then we could see a negative reaction in the markets as investors fret about rising bond yields. Even so, the potential negative reaction is likely to be limited as after all, the financial conditions would still remain extremely accommodative and for a long time anyway.

So, heading into the Fed meeting, it is mostly risk-on across the financial markets and I don’t think that will change much. That’s unless the UK crashes out of the EU without a deal and/or the Fed turns out to be surprisingly too hawkish in its policy statement and assessment of growth and interest rates.

GBP/USDSource: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

RDDT soars: here are the levels to watch in c...

By Alejandro Zambrano

26/03/2024

Weekly Index Dividends

By ThinkMarkets

25/03/2024

Reddit Launches IPO: Can the Struggling Compa...

By Alejandro Zambrano

21/03/2024

Weekly Index Dividends

By ThinkMarkets

18/03/2024

Riding the rollercoaster: Bitcoin's record su...

By Alejandro Zambrano

12/03/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top