DAX up for two days, ignores Christmas lockdown

15/12/2020

European equities continued their drift higher, and the German DAX was up 0.65% during the London session, while US indices were also stronger. 

On Monday, the UK government imposed tighter Covid-19 restrictions on London, citing increased infection rates that may be partly linked to a new variant of the coronavirus. If a new strain of the virus appears and gets stronger, it might jeopardize the current vaccine plans. 

Additionally, Germany will enter a hard lockdown tomorrow, persisting throughout the holidays. The Netherlands has announced a new five-week lockdown, and Italy is considering more restrictions over the Christmas holidays.

Later in the day, US industrial production and capacity utilization numbers are due, but these rarely cause any significant volatility. 

Moreover, the Bank of Canada Governor Tiff Macklem is due to deliver a speech titled "Trading for a Sustainable Recovery" at the Greater Vancouver Board of Trade. His remarks might influence the Canadian dollar.

In the FX, the greenback continues to be wobbly, and the EURUSD pair still trades above 1.21, while the USDJPY pair is stuck near 104.
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