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Best month for the Dow since ‘87

USD/CAD – 4hr Candlesticks
Source: GKFX / MT4 (November 30, 2020)

USD/CAD has reversed strongly off the November 9 low, which could be the first signs of a bottom. The currency pair has so far been unable to make material gains below 1.30 since reaching the level in September.
 

TAKEAWAYS


•    November was the best month for the Dow Jones index since 1987
•    Gold has its worth month since 2016
•    Bitcoin hits a record high
•    Dollar rebounds off 2-year low
•    Oil dips 1% as OPEC delay decision until Tuesday
•    DAY AHEAD: No Manufacturing PMIs, RBA rate decision, Swiss GDP, Powell testifies
 

GURU WISDOM

Wall Street makes its money on activity, you make your money on inactivity. – Warren Buffett
 

MARKETS


*Daily closing price
↘ EUR/USD    1.1930        (-0.35%) 
↘ GBP/USD    1.3331        (-0.01%)
↗ USD/JPY    104.53        (+0.19%)
↘ S&P 500    3577.59    (-0.46%)
↘ Hang Seng    26,451        (-2.06%)
↘ Gold    spot    1777.08    (-0.55%)
↘ Oil (Brent)    47.71        (-0.19%)
↗ Bitcoin    19,404        (+6.64%)
 

NEWS

Dow 1987

Stocks finished lower on Monday but not enough to stop the Dow Jones from having its best month since 1987. The question going forward is – can it continue? While the information on covid vaccines keeps improving, there is every reason to think the strength might continue. December is typically a strong month for stock markets with the so-called ‘Santa rally’. Statistically unless a bear market is established beforehand, December tends to rise as portfolio managers ‘window dress’ the stocks they hold before the end of the year. Though with November being so strong, these rules of thumbs might not apply as normal.
 

Gold 2016


The month hasn’t been so good for gold bugs, but it’s still been a good year. 2016 was also a good year for gold with both Brexit and the election of Donald Trump but saw a big down month when these factors subsided. Equally the pandemic has seen a big rise in gold in 2020 but easing fears thanks to a vaccine have seen it pullback. Make sure to watch our weekly webinar for possible support levels if the gold price drops further.
 

Bitcoin record


Today Bitcoin set a new record high of $19,857 – topping the high made in late 2017 after unwinding all of the double digit decline made last week with a daily gain of 8.7%. This year Bitcoin has gained over 177%. The gains were on Monday were seemingly triggered by the official nomination of Janet Yellen to the position as US Treasury Secretary. As we noted when Yellen was first rumoured as the preferred pick, her experience as Fed Chair printing money means she is well known by the Bitcoin crowd.
 

DAY AHEAD 

*Times in GMT
01:45    CNY    Caixin Manufacturing PMI(Nov)         53.5    53.6
03:30    AUD    RBA Interest Rate Decision         0.1 %    0.1 %
01:45    CNY    Caixin Manufacturing PMI(Nov)         53.5    53.6
15:00    USD    ISM Manufacturing PMI(Nov)         57.9    59.3
 

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