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Over the weekend, the first coronavirus vaccine was approved in the U.S. As the vaccine is rolled out, the long and deliberate process of ending the pandemic begins. The timing is fortuitous given the rise in cases and growing second-wave implications on the economy.
This week, we hear from both the Federal Reserve (Fed) and the Bank of England. The Fed post-meeting news conference may shed some more light on the central bank’s thoughts on potential yield-curve control. Even if the Fed isn’t ready to enact any new policies, the potential exists for a significant impact on the yield curve. Furthermore, the Bank of England will likely discuss the implications of the stalled Brexit negotiations.
Many factors impact the markets both positively and negatively at this moment, but sentiment and momentum will likely keep the recent trends intact through year-end.
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