Trade Idea (2020-11-11) GBP soaring

Trade Idea

Good morning.

DJIA continued to grow and the Nasdaq continued to fall yesterday. The day before, Pfizer reported good results in the interim results of clinical trials of the vaccine of COVID-19, raising market expectations. On the other hand, IT and high-tech stocks continue to adjust.

In the foreign exchange market, the flow of USD repurchase has slowed down. However, although USDJPY temporarily fell below 105 yen, it remains in the 105. EURUSD temporarily fell to 1.17 zone in the London market, but repurchases were seen in the New York market, ending at 1.182. Although EURUSD has been pushed back, it is still above the daily 20-day MA and weekly pivot.

GBP has risen almost on its own (see currency strengths below). It has been well received that the UK has reportedly started supplying vaccines in December and that the Senate has passed amendments to legislation related to Brexit, making progress in reaching a trade agreement with the EU.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday

DJIA: 29,420.92 (+262.95, +0.9%)
NASDAQ: 11,553.86 (-159.93, -1.37%)
S&P 500: 3,545.53 (-4.97, -0.14%)
GOLD: 1,879.9 (+3.5)
OIL: 41.85 (+0.49)
US 10-YR: 0.96 (+0.002)
VIX: 24.8 (-0.95)

Asian market today

Nikkei: 25,338~ (+432)
CME Dow future: 29,381~(-39 Dow)

Economic indicators today

GMT 01:00 (NZ) RBNZ policy interest