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FX Scorecard: Winners and Losers of 2020

By Lukman Otunuga, Research Analyst, ForexTime

– 2020 was shaped by unprecedented events, heightened levels of uncertainty and periods of extreme volatility.

The growing list of themes influencing sentiment triggered shocking movements across currency, commodity, and stock markets. It is safe to say that the year will be remembered as one where the coronavirus pandemic and other major themes placed investors on an emotional roller-coaster ride.

In the FX space, many currencies were unable to handle the ever-shifting themes but some successfully exploited the chaos to appreciate higher.

All hail king of the losers…

Guess what…the Dollar has depreciated against every single G10 and most Asian currencies since the start of the year.

It has been a tragic story for the Greenback in 2020, as low-interest rates, U.S. stimulus, prospects of rising inflation, and improving market mood near the end of the year dragged the currency into the abyss. Looking at the technicals, the Dollar Index (DXY) is down over 7% year-to-date and may extend losses in the new year thanks to vaccine-related optimism.

Pound: Sick man of the G10 space

Anyone surprised that the British Pound has weakened against almost every single G10 currency this year?

The UK economy found itself trapped in a fierce battle against COVID-19 and Brexit related uncertainty. Although it became the first country to authorize Pfizer/BioNTech’s Covid-19 vaccine, fears remain elevated over a double-dip recession due to the impact of the new coronavirus variant. In regards to Brexit, the UK and EU were able to reach a breakthrough before Christmas…however many questions remain unanswered over the terms of the agreement.

In a nutshell, the Pound is trouble with fresh weakness expected in 2021.

Euro silently steals the throne

It has not been a bad year for the Euro despite the surging coronavirus cases and domestic risks impacting the Eurozone.

Since the start of 2020, the Euro has climbed more than 8% against the dollar amid growing optimism about global growth prospects. Given how the Dollar is expected to extend losses in 2021, this could push the Euro higher. This could be bad news for the ECB which fears the risk of lower inflation but also bad news for European companies that are heavily dependent on exports outside of the Eurozone.

Looking at the technical picture, the EURUSD is trading towards 1.23 and could test 1.25 in the coming months.

Let us not forget about the Yen

The Yen is on the path to concluding 2020 gaining almost 5% versus the Dollar.

It has been a mixed year for the currency thanks to the conflicting themes influencing global sentiment. Ignoring its performance against the Dollar, the Yen has weakened against most G10 currencies this year mostly due to the improving market mood and risk-on vibes. As investors become increasingly confident over the global outlook amid vaccine hopes, this could drag the Yen lower in 2021.

Focusing back on the USDJPY, prices are likely to trend lower due to a weaker Dollar.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Forex and Currency News Opinions

29 Dec

Why Traders Should Care About Georgia Runoff Election

By Orbex

Next week we have the final chapter in the 2020 US election saga.

The reason that it’s so important is that control of the US Senate hangs in the balance.

Who controls the Senate has major policy implications, which in particular, affect the markets.

And given what the polls are showing in the lead up to the election, we could get a rather large market reaction when the results are finally announced.

It’s Razor-Thin

While most press attention has been on the results of the Presidential election, it’s actually Congress that has a larger impact on markets.

This is because Congress is the body that makes (or, as has been the theme lately, doesn’t make) the laws.

And incidentally, in Congress, the results were very narrow in November. Democrats ended up losing a substantial number of seats.

At this moment, Democrats have a majority of only 5 seats out of 435 House members.

There are still two contested elections – one in Iowa and the other in New York state with a difference of just 16 and 12 votes, respectively.

In both of those pending elections, Republicans hold the lead, but recounts continue.

The margin is similar in the Senate.

Currently, Democrats have 48 seats, Republicans have 50. If Democrats manage to win both seats in Georgia, then there would be a tie.

Votes that lead to a 50-50 tie will go to the Vice President’s deciding vote, which would be Democrat Kamala Harris.

In other words, the Georgia election is the potential last chance for Democrats to control Congress by the slimmest of margins.

Where We Are Headed

Traditionally, Georgia has voted Republican.

However, in the presidential election, the majority of votes were cast for Democrat Joe Biden. This is highly disputed by the Trump campaign, which alleges voter fraud.

The political shenanigans aside, Democrats feel there is a real possibility of winning.

Polling data shows all candidates are well within the margins, and just a few decimals away from each other.

Though, again, people notoriously question the validity of poll predictions.

The Markets

Because there is no clear ability to forecast the results, the markets are unable to price it in.

Depending on how close the election is, there might once again be a period of hours or days of uncertainty while the votes are litigated.

Democrat control of the Senate would give a Biden Administration much broader leeway to pursue policies promised in the campaign. Policies that the markets might not like.

Some of these include tax hikes, higher regulatory burden, and legal action against certain tech companies on the basis of antitrust laws.

Many analysts see a barely-controlled Congress by Democrats as opening up the potential for a lot more uncertainty, as many Democrat leaders have proposed a wide range of policy changes. But it remains unsure which would obtain a consensus to actually pass.

Markets, in general, prefer a political split between the branches of government.

So, we could expect a substantial relief rally if the results are definitive.

By Orbex

Economics & Fundamentals Financial News

29 Dec

Trump Halting Biden’s Transition To Power

By Orbex

DXY Remains Pressured

The US index closed on a negative footing yesterday as it once again triggered the 90 handle.

Even though a US government shutdown has been avoided, after the US fiscal stimulus is formalized, investors aren’t exactly lining up to take on more risk.

As we move closer to the changing of the guard in the White House, Joe Biden said his team was facing roadblocks with the Department of Defense and the Office of Management and Budget.

Whereas Trump’s administration stated they have been fully transparent, will this be his last attempt to sow chaos in the final weeks of his administration?

Eurozone Boosted by Vaccine Rollout

The euro closed 0.21% higher on Monday as European countries started to vaccinate people against Covid-19.

Early predictions show the economy will grow at its fastest rate in 2021, should the vaccine rollout be successful.

However, the pandemic is likely to leave significant scars. Expectations are for unemployment in the 19-country bloc to rise above 10% for the first time in more than four years.

Brexit Vs Pandemic

The pound dropped by 0.72% yesterday as it crashed through the 1.35 handle.

Positive sentiment surrounding a Brexit deal was quickly put to bed as the UK continues to record higher infection rates.

NHS England said the number of people being treated for the virus in hospital is now higher than the previous peak in April.

The risk of the new variant is looking to overwhelm the economy, as further lockdowns are likely in Q1.

Indices Wrap Up Record Highs

The Dow, S&P, and Nasdaq all touched record highs yesterday on the back of a signed coronavirus bill that will send direct payments to Americans.

Optimism rested on the approval of the $900 billion fiscal rescue package that Congress recently agreed to, and President Trump signed.

The Santa Claus rally usually gives bulls a lift towards the end of the year. However, this recent news propelled stocks even higher than usual.

Will this continue into 2021?

Gold Retraces At $1900

Gold closed 0.47% lower on Monday after initially touching $1900.

The sell-off saw investors looking towards the greenback and a global record stock rally.

The yellow metal has failed to hold on to key levels recently, denting risk appetite for some traders.

As more vaccinations hit the headlines, will we see more resistance in the metal market?

Bulls Flirt With $49

WTI finished 0.25% higher yesterday having failed in an earlier attempt to push above $49.

Headlines have been mixed for the black gold, which has seen sentiment shift back and forth.

President Donald Trump’s signing the $900B Covid-19 aid package will give US demand a boost.

However, the Covid-19 situation is clearly getting worse on both sides of the Atlantic, which continues to weigh on prices.

By Orbex

Financial News Forex and Currency News

29 Dec

JP Morgan Announces New Acquisition

By Orbex

Recovery Continues

Shares in JP Morgan are trading a little lower pre-market on Tuesday. This is despite the better tone to risk markets this week. Shares in the bank have rallied firmly over recent months, however, trading higher by almost 40% off the September lows.

Boosted by better earnings data over the year since the Q1 dirge, JP Morgan shares have seen an impressive 64% rally off the Q1 lows posted during the height of the pandemic. However, they do still remain around 11% lower on the year.

Acquiring Travel & Loyalty Firm

This week, JP Morgan has been on the wires over news that the firm is further diversifying away from traditional banking with the purchase of leading travel and loyalty brand CxLoyalty Group.

The bank’s acquisition of the group, which has around $3 trillion in assets worldwide will see the bank integrating CxLoyalty’s technology platforms and full-service travel agency, along with its gift card and merchandise business into the bank’s Chase cards program.

Upgraded Travel Experiences For Chase Customers

CxLoyalty is a technology solutions firm that specializes in designing, administering and operating customer loyalty programs. The bank’s clients will continue to use their Chase credit cards. They will eventually have access to upgraded travel experiences when the transition and integration are complete.

Commenting on the deal, Marianne Lake, Head of the bank’s consumer lending program said:

“People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future. Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable, and confident to travel.”

JP Morgan Shares Continue Higher

Following the gap higher above the 104.13 level, JP Morgan shares have since broken out above the 115.65 level. They are now on course to test the 128.58 level resistance next. The RSI indicator is showing some bearish divergence here which could lead to selling interest on the first test of the level.

However, while price holds above the 115.65 level, the focus remains on the further upside in the short term. Should price reverse below the 115.65 level, the next support to watch is back down at the 104.13 level.

By Orbex

Financial News Stock Market News

29 Dec

Fibonacci Retracements Analysis 29.12.2020 (EURUSD, USDJPY)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, after a divergence on MACD, EURUSD is stuck within the post-correctional extension area between 138.2% and 161.8% fibo at 1.2167 and 1.2262 respectively. The first descending impulse tried to reach 23.6% fibo at 1.2115 but failed. If the asset fails to break the high at 1.2273, it may start a new decline towards 38.2% and 50.0% fibo at 1.2018 and 1.1937 respectively. However, if the price does break the high, the pair may continue growing to reach the long-term fractal high at 1.2555.

The H1 chart shows potential upside targets. The asset has already reached 76.0% fibo. If the price breaks the high at 1.2273, it may move upwards to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1.2327 and 1.2362 respectively. On the other hand, if EURUSD breaks the local low at 1.2130 again, the asset may continue the mid-term correction to the downside.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the pair is trying to start a new correction to the upside after a convergence on MACD. The correctional targets may be 23.6%, 38.2%, and 50.0% fibo at 104.95, 106.25, and 107.28 respectively. After breaking the low at 102.87, USDJPY may continue falling towards the fractal low at 101.18.

In the H1 chart, the pair is consolidating around 23.6% fibo; this movement may be considered as a correction. If the price breaks this range to the upside, the market may resume trading upwards to reach 38.2%, 50.0%, and 61.8% fibo at 103.94, 104.28, and 104.61 respectively.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News

29 Dec

Forex Technical Analysis & Forecast 29.12.2020

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After breaking 1.2230, EURUSD is expected to continue growing with the target at 1.2270. Today, the pair may reach 1.2260 and then start a new correction to return to 1.2230. After that, the instrument may resume growing towards the above-mentioned target.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has completed the correction at 1.3460; right now, it is growing to reach 1.3722. Later, the market may form a new descending structure with the target at 1.3460.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has finished the descending wave at 73.73; right now, it is consolidating above this level. If later the price breaks this range to the upside, the market may start another correction towards 74.80; if to the downside – resume trading downwards with the target at 72.62.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is still consolidating around 103.50; it has rebounded from the upside border at 103.88 and right now is falling to break 103.50. After that, the instrument may fall to break 103.30 and then continue trading downwards with the short-term target at 102.70.

USDCHF, “US Dollar vs Swiss Franc”

After forming the consolidation range above 0.8880 and breaking it to the downside, USDCHF is expected to fall towards 0.8860. Later, the market may return to 0.8880 to test it from below and then start another decline with the target at 0.8840.

AUDUSD, “Australian Dollar vs US Dollar”

After finishing the correction at 0.7580, AUDUSD is growing towards 0.7600. Possibly, the pair may break the latter level to the upside and continue trading upwards to reach 0.7673. Later, the market may correct with the target at 0.7560.

BRENT

Brent is still forming a consolidation range around 51.36. Possibly, the asset may expand the range down to 50.70 and then grow to reach 52.30. After that, the instrument may fall to break 51.36 and then continue the correction towards 50.10. Later, the market may resume trading upwards with the target at 53.50.

XAUUSD, “Gold vs US Dollar”

Gold is still consolidating around 1880.00. Possibly, today the metal may fall to reach 1869.50. If later the price breaks this range to the downside, the market may resume falling towards 1842.40; if to the upside – start a new growth with the target at 1900.00.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is still consolidating above 25650.00. Possibly, the asset may break the range to the downside and then resume trading downwards to reach 23230.00. Later, the market may form one more ascending structure with the target at 28500.00.

S&P 500

After breaking the consolidation range to the upside, the S&P index is still growing towards 3759.0. Later, the market may start a new correction to reach 3700.0 and then form one more ascending structure with the short-term target at 3800.0.

Article By RoboForex.com

Financial News Forex and Currency News

29 Dec

The Analytical Overview of the Main Currency Pairs on 2020.12.29

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2184
Prev Close: 1.2215
% chg. over the last day: +0.25%

EUR/USD continued its growth on Monday, adding 0.25%, but it takes it slow to break through the maximum of this month at the level of 1.2272. Low liquidity reduces volatility shortly before the holidays. Traders refrain from opening new deals, which may even cause a correction.

Trading recommendations

Support levels: 1.2151, 1.2130
Resistance levels: 1.2272

The main scenario for trading EUR/USD is buying on a decline. The bullish signal strengthened after the break-through of the upper border of the triangle. Thus, the pair confirmed its bullish intentions. Other indicators also point to growth. The moving averages have rebuilt and demonstrated a north direction. The ADX indicates high trend potential.

Alternative scenario: if the price can fix below 1.2208, it is possible that the price will move further to 1.2130, and a break-through of the last point may signal a complete reversal.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3544
Prev Close: 1.3457
% chg. over the last day: -0,65%

It may seem paradoxical, but after the news about the readiness to reach a deal, the sterling decreased. It seems that investors fully appreciated the availability of an agreement between the two parties in advance and will now focus on economic problems. Britain will start the new year with problems in the economy, which may worsen after the official withdrawal from the European bloc.

Trading recommendations

Support levels: 1.3287, 1.3187
Resistance levels: 1.3623

The main scenario is selling on growth. Technical specifications are now mixed. The upward momentum has slowed down. The pair is stuck between the two moving averages SMA 50 and SMA 100. The MACD moved into the negative zone, but the ADX still indicates the presence of bulls in the currency pair. The trend potential oscillator doesn’t react to a decline. The “double top” pattern is a strong sign of a possible departure of the currency pair for compensation.

Alternative scenario: if the pair fixes above 1.3523, the southern scenario is likely to reverse and the pair can reach 1.3623.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 103.66
Prev Close: 103.77
% chg. over the last day: +0.10%

The break-through of the maxima on the stock markets helped the bulls to overcome the first resistance at 103.73. But it hasn’t yet managed to fix. The currency pair continues to fluctuate around 103.50, showing no particular signs of movement in this or other direction. Technical indicators point to the unlikely development of both the northern and southern scenarios.

Trading recommendations

Support levels: 103.26, 102.89
Resistance levels: 103.90, 104.15

The main scenario is trading in a sideways range. Signs of a narrow rising channel are emerging but are not yet convincing. The ADX stopped responding to the movement of the pair, and the MACD returned to zero values. Most likely, the instrument will continue to show low volatility and remain within the range of 103.90 – 103.50.

An alternative scenario assumes a break-through of 103.26 and the development of a further fall. In case of breaking 103.73, further growth to 104.15 or higher is possible.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2841
Prev Close: 1.2846
% chg. over the last day: +0.04%

On Monday, the trading session brought the pair a symbolic 0.04% on a slight decline in oil prices. The market is awaiting the OPEC+ decision on oil production, so the Brent and WTI quotations slightly decreased.

Trading recommendations

Support levels: 1.2789, 1.2689
Resistance levels: 1.2954, 1.3079

The main scenario is risk-averse selling. The daily candle has left shadows above and below, which provides equal signals to bulls and bears. The MACD is near zero. But the moving averages indicate a resumption of the southern scenario. The same is observed on the ADX oscillator – an increase in the potential of the southern trend. In this regard, there is a possibility of renewed bearish sentiment. The signal will strengthen with the break-through of 1.2789.

Alternative scenario: if the price manages to return above 1.2858, the pair may resume the upward correction.

There is no news feed for today.

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Financial News Forex and Currency News

29 Dec

When could we see $60 Oil again?

By Han Tan, Market Analyst, ForexTime

Riskier assets couldn’t hold back their delight on Monday after President Trump signed off on the US$2.3 trillion package which combines government funding and pandemic relief measures. US benchmark stock indices such as the S&P 500, the Dow Jones, and the Nasdaq 100 closed at new record highs.

However, US Crude prices did not share the same level of enthusiasm for the incoming fiscal stimulus.

Having rallied hard since early September, gaining as much as 44 percent to hit its highest levels since March, Crude Oil has since plateaued. From a technical perspective, this was a healthy move, given that prices had far extended into overbought territory leading up to Christmas day, judging by its 14-day relative strength index. WTI crude futures fell 1.26 percent on Monday, before paring losses at the time of writing.

Similarly, Brent Oil had gained 44 percent during that same 7-week period, before consolidating after such a rapid ascension. Brent futures registered a 0.8 percent decline yesterday and is now striving to erase those losses.

Recall that much of those gains since early November coincided with positive developments surrounding a Covid-19 vaccine, and Oil prices were further boosted by expectations that OPEC+ would restore its Oil supplies at a slower pace next year. The narrative held by markets to justify the surge in Oil prices was that the lower-than-previously-expected output hike would occur alongside a vaccine-enabled demand recovery. Such supply-demand dynamics diminished the risk of oversupplied conditions in global markets, while warranting higher prices.

However, it appears that the easy gains are now over.

What’s standing in the way of higher Oil prices?

Oil bulls are taking a breather for the time being, as they digest some looming downside risks.

As the world waits for the Covid-19 vaccine to reach a sizeable portion of its population, Covid-19 hospitalizations in the US are at record levels, while the lockdown measures in southern California looks likely to be extended. Spain has recorded a death toll of more than 50,000 due to the pandemic. Asian economies are ramping up their attempts to halt the spread of Covid-19 within their borders, with the likes of Indonesia and Taiwan raising the bar on foreign visitors and flight crews. Many nations have already imposed bans on flights from the UK on fears over the potentially faster coronavirus strain.

Such virus-curbing measures have a dampening effect on global demand for Oil, as economic activity struggles to overcome the pandemic, which in turn is serving as a drag on prices.

Key OPEC+ moves in early January

While the resurgent coronavirus is eroding demand, some OPEC+ members appear eager to restore more of their supply. Recall that the alliance of major Oil-producing nations had decided earlier this month to lower its output hike to 500,000 barrels per day (bpd) starting from this Friday, January 1st. That 500,000 bpd figure is lower than the previous plan of hiking output by some 2 million bpd.

However, OPEC+ is due to meet next week to decide on February’s production levels, and already Russia has indicated its willingness to increase output some more. Russia’s Deputy Prime Minister has cited the $45-$55 range as “most optimal” for Oil prices. Still, other major OPEC+ members require Oil prices to be higher in order to fund their respective fiscal plans.

Hence, it remains to be seen where the balance of power lies in next Monday’s meeting, and that may have a major say on whether Oil can continue climbing higher.

In short, a return to $60 Oil would require a disciplined restoration of OPEC+ supplies, coupled with sustained signs that the global economy is taking meaningful strides into the post-pandemic era.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Energy Financial News

29 Dec

2021’s major investment risks – but why it could be a year of massive opportunity

By George Prior

– Investment headwinds will “still exceed the tailwinds” in 2021 – but there could be more “major opportunities now than in perhaps the last 10 years” if you know where to look.

This is the bold and, given 2020, perhaps surprisingly optimistic forecast from Nigel Green, chief executive and founder of deVere Group, one of the world’s largest independent financial advisory and fintech organisations.

It comes as investors around the world focus on rebalancing portfolios for 2021, after a year no-one expected.

Mr Green says: “2020 was a year for which nobody had planned.

“This included investors, many of whom were caught spectacularly off-guard by not having properly diversified portfolios, which left them open to untold financial risks.

“Looking ahead to 2021, it is likely that investment headwinds will still exceed the tailwinds – but, I believe, that there are also more major investment opportunities to be had in the next year than perhaps in the last decade.”

‘Headwinds’ are the factors that likely weigh on growth and returns, and ‘tailwinds’ are those that can be expected to boost growth and help drive positive returns.

He continues: “The major long-term headwind from the fallout of 2020 is unemployment, which will hit demand, growth and investment.

“There’s also the roll-out of a mass global vaccination agenda which will be a lengthy process and logistical minefield, plus there are the ‘vaccine sceptic’ concerns to address.

“Meanwhile there are geopolitical issues that could impact on investor returns. These include the significant readjustment that will need to happen following Brexit, U.S.-China trade relations which are likely to become increasingly competitive especially in the tech sector, and the rising border tensions between India and China, amongst others.”

However, despite the significant headwinds, the deVere CEO flags three major investment tailwinds in 2021.

“First, the rollout of the Covid vaccines which means economies can be expected to begin solid recoveries,” he says.

“Second, President-elect Joe Biden will enter office and his administration promises a more predictable approach to trade and foreign affairs – and the markets like certainty.

“And third, it is likely that governments will continue to offer fiscal support packages as their economies recover from the pandemic, offering a ‘floor’ for markets.”

Mr Green goes on to add: “To quote Einstein, ‘In the midst of every crisis, lies great opportunity.’

“This is why, after such a monumental crisis, I believe that if you know where to look and act appropriately to build your wealth, there could be plenty of key opportunities to come.

“The pandemic has accelerated history, speeding up and exacerbating major trends in just a few months, that ordinarily might have taken decades to be fully realised.”

He maintains that the global economy, how we live, do business and interact remains fundamentally changed. “It is doubtful the world will go back exactly to how it was pre-Covid – there are many aspects of the ‘new normal’ which people like and support, just a home working. As such, some of the major shifts are unlikely to be reversed,” he notes.

“As such, investors need to look for the lower entry points of quality companies to top-up their portfolios and, critically, they need to bear in mind how the world has changed.

“Their portfolios must reflect the future, not the past.”

Mr Green concludes: “Headwinds will surpass tailwinds in 2021 as the world readjusts, but it’s essential that investors stay invested. As we know, history has shown us that stock markets tend to go up over the long-term.

“But as the world moves ahead to a post-pandemic era, it’s crucial that investors ensure their portfolios are suitably diversified across asset classes, sectors, currencies and regions, so as to make the most of the considerable opportunities that will inevitably present themselves.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Opinions

29 Dec

Investors are evaluating a trade deal between the EU and Britain, as well as an investment deal with China

by JustForex

Optimism continues to reign on stock markets. The US stimulus package and the Brexit agreement pushed the MSCI global stock indicator closer to record maxima.

The successful conclusion of negotiations, which began in 2013 on an investment agreement between the EU and China, will be a blow to the former so-called “America First” strategy. The deal will give European investors access to the Chinese market in a variety of industries, from automobiles to biotechnology. Against this background, the dollar continues to decline, and the American Treasuries confidently hold around 0.950%.

The only weak link in the credit market is the British Gilts. There is some kind of tension and fear here. Since the negotiations no longer affect the market, investors are starting to assess the current economic situation and the consequences of the actual withdrawal. Due to the fact that the British economy has suffered significantly from long-running negotiations, and the coronavirus pandemic has increased the pressure on the economy, the beginning of the year for Foggy Albion can turn out to be very difficult.

Industrialists in the automotive industry face great difficulties. Of course, the sector escaped disaster, but there is even more damage that can be done after last week’s deal. The costs related to the need to switch suppliers and the burden of customs declarations, certificates and audits can still keep investing in this industry at a very low level.

Against this backdrop, the sterling feels uncertain, and the FTSE accelerated its growth in anticipation of a decline of the British currency.

Major stock indices are trading with the rise. The dollar index didn’t receive any drivers to growth.

S&P 500 (F) 3,745.62 +18.12 +0.49%

Dow Jones 30,403.97 +204.10 +0.68%

DAX 13,870.80 +80.51 +0.58%

FTSE 100 6,664.55 +162.44 +2.50%

USD Index 90.052 -0.223 -0.25%

There is no news feed for today.

by JustForex

Financial News Forex and Currency News

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