TOPICS DISCUSSED IN THIS MARKET BRIEFING:

•     European stock markets welcome Fed announcements
•     Wall Street appreciates the Fed's actions
•     Chart of the day – USD/CAD: the dollar sinks its supports

European stock markets welcome Fed announcements

European budgets are trading higher on Thursday, driven by the announcements of the Federal Reserve which pleads, as expected, for the maintenance of support for the US economy and by hopes of an agreement on a fiscal stimulus plan in the United States.

European equities are benefiting from the Fed's promise on Wednesday night to continue injecting liquidity into the economy and financial markets to combat the risk of recession, even as its leaders are a little more optimistic for next year thanks to the deployment of the first authorized coronavirus vaccine.

Investors are keeping an eye on Congress where negotiations between elected officials are advancing on a $900 billion stimulus package that could include direct assistance to individuals of $600 to $700 as well as an extension of federal unemployment benefits. we learned Wednesday from several sources.

On the health front, the French Prime Minister said on Wednesday that the first vaccinations against COVID-19 could begin in the very last days of the year if the European calendar for the authorization of vaccine candidates was respected.

Wall Street appreciates the Fed's measures

Wall Street ended down 0.15% on Wednesday while the Nasdaq ended on a high as investors welcomed the Fed's promise to continue supporting the economy.

The U.S. Federal Reserve on Wednesday left its monetary policy unchanged but vowed to continue to support the economy and markets, even if its leaders are a little more optimistic for next year.

The U.S. central bank reaffirmed its commitment to maintain a near-zero fed funds target until the economic recovery is full, but added that its purchases of securities on the markets were now also linked to this target.

Investors will have waited throughout the session for news from Congress where an agreement was being drafted on stimulus measures for American households.

As a result, the Dow Jones lost 0.15% to 30,154.54 points. The Nasdaq gained 0.50% and the S&P 500 advanced 0.18%.

Otherpoints on financial market news

•     Forex

The euro has reached a peak since April 2018 with the decline of the dollar caused by the Fed's announcements and the confidence of foreign exchange traders on the ability of US elected officials to agree on a support plan.

Boosted by signs of progress in Brexit talks, the pound sterling is advancing 0.56% against the dollar, trading at a high since May 2018.

•     Oil

The oil market is rising after the Energy Information Administration announced a sharper-than-expected decline in U.S. crude inventories and thanks to optimism over the coronavirus vaccination campaign in the United States.

Economic calendar of the day:

CHART OF THE DAY –USD/CAD: the dollar sinks its supports

The U.S. dollar has been widening its losses against the Canadian dollar for several weeks. The Fed's announcements did not allow the greenback to rebound. On the other hand, the rise in oil is strengthening the Canadian dollar.

Difficult to see a technical rebound in this current context, sellers keep the hand by pushing the supports. The momentum is strongly bearish, so we will monitor the level of 1.2545 for a stabilization of prices.

This threshold should allow the pair to regain a little height. Nevertheless, as long as the market does not manage to regain the 1.2960 to reverse the trend, traders will seek to position themselves in the flow direction (bearish).

Learn more about financial market news from my previous Market Briefing.