Trade Idea (2020-12-31) USD selling continues in quiet year-end market

Trade Idea

Good morning.

Yesterday’s US stock market was in a slump at the end of the year, with all major indices rebounding. The Dow Jones Industrial Average is + 0.24%, the S & P 500 is + 0.13%, and the Nasdaq Composite is + 0.15%.

The US additional economic stimulus package has been successfully completed, and whether the $ 600 personal benefit will be raised to $ 2,000, but Republican leaders are reluctant and the situation is uncertain. However, $ 600 has begun to be paid.

In the foreign exchange market, while inflation is expected including this personal benefit, real interest rates will fall further as long as the Fed’s low interest rate policy continues, and long-term expectations for a weaker dollar are strong.

EURUSD and GBPUSDrose to 1.23 and 1.362 respectively during New York time in a thin trade.

The long-term interest rate was flat at 0.926%, and the VIX index fell to 22 units. Bitcoin has been around 29,000.

EURUSD H1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJIL: 30,409.56 (+73.89, +0.24%)
S&P500: 3,732.04 (+5.00, +0.13%)
Nasdaq Composite: 12,870.00 (+19.78, +0.15%)
Nasdaq 100: 12,845.36 (+1.87, +0.01%)
Russel 2000: 1,979.99 (+20.63, +1.05%)
Gold Future: 1,898.80 (+5.40)
Oil Future: 48.33 (-0.07)
US10Y: 0.926% (UNCH)
VIX: 22.77 (-0.31 -1.34%
BTC/USD: 28,838

Asian market today

Nikkei: -
CME Dow future: 30,337~(-52 Dow)

Economic indicators in this week

We have no important indicator today.