Dec 21, 2020 18:07 GMTFXStreet News
USD/CHF rose to its highest level in 12 days at 0.8919.
US Dollar Index retreated below 90.50 after early upsurge.
New strain of coronavirus forces investors to remain cautious.
The USD/CHF pair advanced to its highest level since December 9 at 0.8919 on Monday but struggled to preserve its bullish momentum during the American trading hours. As of writing, the pair was up 0.35% on the day at 0.8862.
DXY rally loses steam
The broad-based USD strength fueled USD/CHF’s upsurge during the European trading hours. The heavy selling pressure surrounding global equity indexes and risk-sensitive assets helped the greenback attract investors at the start of the week.
Provided by Dow Jones By Xavier Fontdegloria The U.S. economy expanded at an above-average rate in November, although at a slower pace than in October, suggesting the virus resurgence in the month took a toll on economic activity, data from the Federal Reserve Bank of Chicago showed Monday. The Chicago Fed National Activity Index was 0.27 in November, down from an upwardly revised 1.01 in October. The CFNAI is composed of 85 economic indicators drawn from four broad categories of data: production and income; employment, unemployment and hours; personal consumption and housing; and sales, orders and inventories. A positive index reading corresponds to growth above trend and a negative index reading corresponds to growth below trend.
Tesla, Stimulus, Coronavirus, Apple - 5 Things You Must Know Monday TheStreet 12/21/2020
Here are five things you must know for Monday, Dec. 21:
1. Stock Futures Slump Amid Emergence of New Coronavirus Strain in U.K.
Stock futures were falling sharply Monday after a new coronavirus strain in the U.K. and a surge in infections overshadowed the announcement that congressional leaders reached an agreement on a roughly $900 billion stimulus package.
Contracts linked to the Dow Jones Industrial Average fell 419 points, S&P 500 futures were down 58 points and Nasdaq futures slumped 127 points. Equities were coming off a winning week, with the Dow having gained 0.4%, the S&P 500 advancing 1.3% for its its fourth positive week in five, and the Nasdaq rising 3.1%.
The economy s rate of growth again marginally slowed based on the Chicago Fed National Activity Index (CFNAI) 3 month moving (3MA) average - but the economy remains above the historical trend rate of growth.
Analyst Opinion of the CFNAI This Month
This index is likely the best coincident indicator of the U.S. economy. A coincident indicator shows the current state of the economy.
This month, three out of the four broad categories of indicators improved.
The economy has slowed from its rate of growth in 2018 but now has moved above territory associated with recessions [a level below -0.7 indicates a recession is likely underway].
1. Stock Futures Slump Amid Emergence of New Coronavirus Strain in U.K.
Stock futures were falling sharply Monday after a new coronavirus strain in the U.K. and a surge in infections overshadowed the announcement that congressional leaders reached an agreement on a roughly $900 billion stimulus package.
Contracts linked to the Dow Jones Industrial Average fell 419 points, S&P 500 futures were down 58 points and Nasdaq futures slumped 127 points. Equities were coming off a winning week, with the Dow having gained 0.4%, the S&P 500 advancing 1.3% for its its fourth positive week in five, and the Nasdaq rising 3.1%.
Both the House and Senate likely will vote Monday on the pandemic relief bill, which includes temporary supplemental unemployment benefits of $300 a week, and a $600 direct stimulus payment to most Americans. The legislation also will include resources for education, child care and housing.