Christmas cancelled in London
Source: GKFX / MT4 (December 20, 2020)
WTISPOT is trending strongly higher, reaching back to levels last seen in February. However, the uptrend faces resistance from the $50 round number and 61.8% Fibonacci retracement of the downtrend that started in September 2018.
TAKEAWAYS
• London locks down to control faster spread of new coronavirus strain
• Tesla jumps 6% in heavy volume trading before S&P 500 inclusion
• Last-minute US stimulus deal still being agreed before a Monday deadline
• Gold steadied after 3-day rip near $1880 per oz
• WTI crude oil tops $49 per barrel, highest since February
• Dollar sets fresh 2 ½ year lows in week of losses
• DAY AHEAD: PBoC rate decision, Chicago Fed
GURU WISDOM
"If there is one common theme to the vast range of the world’s financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." — Carmen Reinhart
MARKETS
*Daily closing price
↘ EUR/USD 1.2255 (-0.09%)
↘ GBP/USD 1.3518 (-0.65%)
↗ USD/JPY 103.31 (+0.20%)
↗ S&P 500 3709.41 (-0.35%)
↘ Hang Seng 26,498.60 (-0.67%)
↘ Gold 1814.81 (-0.28%)
↗ Oil (Brent) 52.32 (+1.59%)
↗ Bitcoin 23,804 (+2.93%)
NEWS
London lockdown
In a last minute change of tact before Christmas, the UK government created a new tier 4 system that involves stay-home orders for London and most of South East England. The decision came following advice from scientists that a new coronavirus strain is spreading faster, causing a spike in cases. The bad news could weigh on any positive effects on the pound if a Brexit deal is achieved this week. Were there to be no Brexit deal, it could add to the losses in GBP.
Tesla S&P today
Tesla will be added to the S&P 500 before the US market opens on Monday. The stock moved up on Friday, the final day of trading, with four times the usual volumes as passive funds (ETFs) bought the stock before its inclusion in the index. Traders have been bidding up the stock before this moment ever since it looked like the EV car-maker would meet the qualifications to be included. There could be a ‘sell the news’ drop in the stock but short-sellers have been capitulating given the sharp rise in the stock.
DAY AHEAD
*Times in GMT
01:30 CNY PBoC Interest Rate Decision 3.85 % 3.85 %
01:30 AUD Mid-Year Economic and Fiscal Outlook Report
13:30 USD Chicago Fed National Activity Index (Nov) 0.83
15:00 EUR Consumer Confidence(Dec) PREL -17.6 -17.6
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