Trade Idea (2020-12-22) USD sold after risk-off buying

Trade Idea

Good morning.

Yesterday’s US stock market was a big downturn. The Dow Jones Industrial Average is + 0.12%, the S & P 500 is -0.39%, and the Nasdaq Composite is -0.10%. In the early stages, risk aversion sales preceded, the virus of the variant spread in the UK, British Prime Minister Johnson announced lockdown again in some areas, the UK EU trade negotiations are coming to a close, the position adjustment of Christmas week The atmosphere was anaerobic, and the atmosphere was “Is it finally a rough Christmas with the incorporation of Tesla stock SP?”, But after the sales cycle, the buyback came in favor of the economic measures agreed on the scale of 900 billion dollars. I did. However, the S & P 500 and Nasdaq have closed due to a decline from last weekend, and the chart shape needs attention.

In the foreign exchange market, USD buying continued to dominate in the early stages, but USD was sold in the second half. EURUSD was temporarily repurchased after falling to 1.213 units, ending at 1.224 units. GBPUSD, which is approaching the end of trade negotiations with the EU, has been volatile, temporarily falling to 1.318 and ending at 1.344 units.

The long-term interest rate fell slightly to 0.931%. The VIX index jumped to 28 units and ended at 25 units.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJI: 30,216.45 (+37.40, +0.12%)
S&P500: 3,694.92 (-14.49, -0.39%)
Nasdaq Composite: 12,742.52 (-13.12, -0.10%)
Nasdaq100: 12,690.26 (-47.92, -0.38%)
Russel2000: 1,970.33 (+0.34 +0.02%)
Gold Future: 1,884.80 USD +2.00
Oli Future: 47.74 USD UNCH
US10Y: 0.931% -0.01
VIX: 25.16 USD +3.59

Asian market today

Nikkei: 26,593 (-120)
CME Dow future: 30,083~(-133 Dow)

Economic indicators in this week

15:00 (US) Used homes sales
15:00 (US) Consumer confidence index