Key Points From This Week
Democrats Win Georgia; Violence in Washington
There were historic scenes in the US this week. Both Democrat candidates won in the Georgia state run-offs with Raphael Warnock becoming the first black state leader for Georgia and Jon Ossoff becoming the youngest person to enter the senate since joe Biden. In reaction to the news, pro-Trump supporters stormed Washington DC with thousands involved in protests and rioting and a small group breaking inside the senate itself leading to four people being killed and many more injured
Trump Concedes to Biden
On the back of the Democrat win in Georgia and the violence which followed in the capital, Trump eventually announced that he formally concedes to Biden, who will now be sworn in on January 20th. Trump came under heavy criticism for his role in provoking the riots and his failures, initially, to condemn the rioters whom he called “special” and “brave patriots”
OPEC Deal Agreed
The meeting among OPEC+ members this week, which stuttered initially, eventually resulted in a deal. In the face of growing demand concerns, linked to the intensifying second wave of COVID, member nations and allied nations agreed to hold production at current levels in exchange for Saudi Arabia agreeing to take a 1 million barrel per day cut. With prices rising, there were fears that some nations would look to up production which could once again imbalance the market if demand starts to wane as a result of fresh global lockdowns.
Key Events Next Week
The latest round of US inflation data is due next week and traders will be closely monitoring the release. The recent rise in energy prices presents upside risks though, the return of social distancing measures and lockdowns in many states mean that weakness is likely to have remained over the last month.
US Retail Sales
Retail sales will be the headline reading next week. Given the importance of the indicator in gauging GDP, it is always a closely watched release. Traders will be looking to see whether the reading was able to recover from minus territory over the last month or if the drawdown worsened. A further weak figure is likely to keep the US Dollar pressured again next week.
Keep An Eye On
With growing calls for Trump to be removed via the 25th amendment ahead of the January 20th transition data, the US elections saga is not over yet. House speaker Nancy Pelosi threatened this week that unless Trump is removed she will have him impeached on grounds of sedition.
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