Trade Idea (2020-12-01) USD bought by Month End Adjustment

Trade Idea

Good morning.

It’s December from today. The Dow Jones Industrial Average and the S&P 500 fell sharply in the US stock market yesterday. The Dow Jones Industrial Average fell by more than $ 400 temporally. Profit-taking sales related to the end of the month have strengthened. The Dow Jones Industrial Average in November ended with a 12% rise due to progress in vaccine development and expectations of the next administration of Biden. On the other hand, IT / high-tech stocks were mixed and Nasdaq was flat, and although temporary sales increased in the first half, it was back to the end.

In the foreign exchange market, USD was rapidly repurchased across London fixing at the end of the month. USDJPY has risen to 104.4 in the US market, ending near 103.3. EURUSD was bought all the time until European time and tried the milestone 1.20, but this time it was pushed back and finished around 1.1923.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJIA: 29,638.64 (-271.73, -0.91%)
NASDAQ: 12,198.74 (-7.11, -0.06%)
S&P 500: 3,621.63 (-16.72, -0.46%)
GOLD: 1,786.1 (+5.2 +0.292)
OIL: 44.94 (-0.4)
US 10-YR: 0.847 (+0.005)
VIX: 20.57 (-0.27)

Asian market today

Nikkei: 26,824 (+390)
CME Dow future: 29,877~(+238 Dow)

Economic indicators in this week

03:30 (AU) RBA Policy Rate & Statement Announcement
15:00 (US) ISM Manufacturing Business Conditions Index
15:00 (US) Fed Chairman Powell Testimony
15:00 (US) Testimony of Treasury Secretary Steven Mnuchin