US dollar
After a down day on Monday, stocks have stabilized, and the safe-haven dollar retreated on reports that US officials made progress toward a fiscal deal. On Brexit, the UK still demands concessions from the EU. US housing figures and political headlines toward the debate are eyed.
Coronavirus is raging in Europe with several countries and regions announcing more restrictions. Authorities in Belgium warned of a “tsunami” in cases. Christine Lagarde, President of the European Central Bank, warned that the recovery could stall.
EUR/USD has been mostly responding to US fiscal stimulus news rather than eurozone coronavirus cases, staying below the 1.18 level. USD/JPY extended Monday’s recovery moves above 105.50, benefiting from gains in the S&P 500 futures and Treasury yields. GBP/USD trades below 1.2950 while into Tuesday’s London open.
Oil prices have been stable, with WTI holding just above $40. Gold has been flirting with the $1,900 level in anticipation of news on the fiscal front.
The US economic calendar features US Building Permits and Housing Starts. John Williams, President of the New York branch of the Federal Reserve, is slated to speak later and the API Weekly Crude Oil Stock report comes at 20:30 GMT.