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GBP wobbles over Brexit trade deal

Wall Street – Daily Candlesticks
Source: GKFX / MT4 (December 7, 2020)

WS30 has formed a triangle consolidation pattern on the 4 hour price chart and has so far made 2 false breaks to the topside. These triangles are usually continuation patterns but can be reversals too, where the confirmation is a break of the bottom rising trendline.

TAKEAWAYS


•    GBP/USD slides 1.5% but ends well off lows
•    UK Prime Minister Boris Johnson to travel to Brussels 
•    Gold rallies back over $1850 per oz, silver just short of $25
•    Dow falls while Nasdaq hits record high
•    Palantir stock flies 21% higher on report of FDA contract
•    DAY AHEAD: UK rolls out covid-19 vaccine, Brexit talks, Eurozone GDP data
 

GURU WISDOM


Ambition is a lust that is never quenched, but grows more inflamed and madder by enjoyment. – Thomas Otway
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2110        (-0.09%)
↘ GBP/USD    1.3374        (-0.31%)
↘ USD/JPY    104.34        (-0.15%)
↘ S&P 500    3691.96    (-0.19%)
↘ Hang Seng    26,506.85    (-1.23%)
↗ Gold        1866.30    (+1.43%)
↘ Oil (Brent)    48.63        (-0.86%)
↘ Bitcoin    19,137        (-2.79%)
 

NEWS

 

GBP’s drop


GBP/USD trimmed its losses in the end after dropping 1.6% in its biggest one day fall in nearly 3 months. UK Prime Minister Boris Johnson and European commission President Ursula von der Leyen issued a joint statement saying that a deal was not possible at this stage but hopes were lifted by news that Boris will travel to Brussels later this week to try to thrash out a deal.  
 

Gold keeps going


Gold overcame a an important test of $1850 resistance, closing above $1860 per oz thanks in part to weakness in the dollar and dip-buying in the precious metal that has carried it higher 4 of the last 5 trading days. While stock markets are close to record highs, there is a rising uncertainty about the distribution timetable for covid vaccines following the news from Pfizer that it will cut its planned initial distribution by 50% because of supply chain issues.
 

Palantir pops


Palantir stock popped by over 20% on Monday amid reports of a possible deal with the FDA (US Food and Drug Administration). The deal is worth $44.4 million and Palantir’s data analytics will be used to help power drug reviews and inspections for the government agency. US government agencies make up over half of Palantir’s customer base.
 

DAY AHEAD 


*Times in GMT    
00:30    AUD    House Price Index (QoQ)(Q3)             -1 %    -1.8 %
06:45    CHF    Unemployment Rate s.a (MoM)(Nov)         3.4 %    3.3 %
10:00    EUR    Gross Domestic Product s.a. (QoQ)(Q3)         12.6 %    12.6 %
10:00    EUR    ZEW Survey – Economic Sentiment(Dec)     46    39