Weekly

Today's volatility range:

The positive news from the Brexit negotiations, coupled with the fact that the Federal Reserve plans not to raise interest rates within three years, is not conducive to the trend of the US dollar. The US dollar index hovers at a two-year low, and the market expects the US dollar to fall further, which supports the rise of gold prices.

However, yesterday, the price of gold rose to 1865 US dollars, which was also near the resistance level mentioned yesterday, and there was great pressure to go up to 1870. Today's major volatility is expected to be between $1,850 and $1,870.

After negotiations on Brexit were extended on Sunday, there was further progress yesterday. Speaking at the EU meeting, Ursula von der Leyen, President of the European Commission, said that the differences with Britain are narrowing, and although the problems still exist, at least the direction is found.

It is reported that the EU and Britain will set up a complaint and arbitration mechanism to solve the problem of unfair competition, avoid frequent international legal proceedings, or impose tariffs on each other for punishment. As for Britain, apart from emphasizing the sovereignty of British waters.

Therefore, at this stage, there is only one problem left: fishing. While Britain emphasizes the sovereignty of British waters, it is actually considering how the interests of the United Kingdom can open the fishing boats of the European Union to fish in British waters.

However, the differences between the two sides are the catch distribution, the period of quota and the quantity of quota. Therefore, it is still optimistic that the two sides can reach an agreement. At least British MPs have been informed that once the Brexit agreement is reached,

British Prime Minister Johnson will convene Congress during the Christmas holiday to pass relevant bills. The news is good for major European stock markets, and the German DAX index rose by 1.53%; French CAC index rose by 0.31%; Britain's FTSE 100 index rose by 0.89%.

In the early morning of this morning, the Federal Bank of the United States decided to keep the federal funds rate unchanged between 0 and 0.25%, as expected by the market, and most members voted for the fund rate not to be raised within three years.

However, it was noted that one more member voted in favour of raising interest rates once before 2023 than at the last meeting on interest rates. Federal Reserve Chairman Powell spoke at the meeting, saying that he expected to maintain the current interest rate level.

Until the labor market meets the full employment assessment, the inflation rate rises to 2% and the tolerance exceeds this level. Powell said that he is open to the scale of debt purchase. If necessary, the Fed is ready to buy more debts.

He added that the Federal Reserve will continue to buy government bonds at a rate of not less than $80 billion per month and increase its holdings of mortgage bonds at a rate of not less than $40 billion per month. Under the pressure of no interest rate increase, new york stock market developed individually.

The negative growth of core retail sales in the United States was 0.9%, which was worse than market expectations. Due to retail data, the Dow Jones index fell 0.15%; The Standard & Poor's 500 Index rose by 0.18%; Nasdaq index hit a new high for two consecutive days, up 0.5%.

The positive news from the Brexit negotiations, coupled with the fact that the Federal Reserve is not scheduled to raise interest rates within three years, is not conducive to the trend of the US dollar. The US dollar index hovered at a two-year low and closed below 90.24 points. The market expects the US dollar to fall further, which supports the rise of gold prices.

Yesterday, gold rose to a full-day high of $1,865 per ounce. Finally, bitcoin, the virtual currency, soared yesterday, breaking through $20,000 for the first time, and once rose to about $21,500 at the highest.

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