Trade Idea (2020-12-25) UK-EU deal reached agreement

Trade Idea

Good morning.

Yesterday’s US stock market was in less volatility as liquidity diminished on Christmas Eve with shortened trading until 1:00 pm. The Dow Jones Industrial Average is + 0.23%, the S & P 500 is + 0.35%, and the Nasdaq Composite is + 0.26%.
The UK-EU trade negotiations, which had been difficult to discuss due to the final stage, have finally been agreed. However, the market has already factored in and the reaction of the US stock market has been limited. President Trump has complained about the additional economic measures passed by the US Congress and demanded an increase in direct benefits, but he did not mention the veto exercise, and the market seems to be taking it calmly.

EURUSD remained in the narrow range of 1.218-1.222. GBPUSD, which reached an agreement at the end of trade negotiations with the EU, temporarily rose to 1.361 and then ended at around 1.353 due to exhaustion of materials.

The long-term interest rate fell to 0.926%, and the VIX index fell to 21 units.
Bitcoin has risen slightly, moving around 23,700.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJI: 30,199.87 (+70.04, +0.23%)
S&P500: 3,703.06 (+13.05, +0.35%)
Nasdaq Composite: 12,804.73 (+33.62, +0.26%)
Nasdaq100: 12,711.01 (+57.87, +0.46%)
Rissel2000: 2,003.95 (-3.15, -0.16%)
Gold Future: 1,882.60 (+4.50)
Oil Future: 48.30 (+0.18)
US10Y: 0.926% (-0.029)
VIX: 21.53 (-1.78)
BTC/USD: 23,683.2598 (+435.53)

Asian market today

Nikkei: 26,659 (-8)
CME Dow future: 30,102~(-97 Dow)

Economic indicators in this week

We have no important indicator today.