Trade Idea (2021-01-05) Gold & Chinese Yuan rise, Bitcoin fluctuated

Trade Idea

Good morning.

On the first day of the new year, the US stock market saw all major indices fall sharply, with the Dow Jones Industrial Average at -1.25%, the S & P 500 at -1.48% and the Nasdaq Composite at -1.47%.

In the foreign exchange market, EUR, JPY, and AUD were bought by risk-on dollar selling until European time, and in the US market, the risk was turned off with the fall of US stocks, and USD was bought back. GBP, which was announced with a full-fledged lockdown, had a selling advantage from beginning to end.

Gold and Chinese yuan have been the dominant buyers since Asian time (see daily chart below). Bitcoin has been volatile early in the new year, dropping from a high of 33,000 to 27,000 at one point and then moving to 32,000.

Long-term interest rates have fallen slightly to 0.922%, and the VIX index has risen sharply to 26.97.

EURUSD, GBPUSD, Gold, Bitcoin D1 (Please click the chart to enlarge.)

Market Environment

Yesterday’s currency strength

US market yesterday (last Friday)

DJIA: 30,223.89 (-382.59, -1.25%)
S&P500: 3,700.65 (-55.42, -1.48%)
Nasdaq Composite: 12,698.45 (-189.83, -1.47%)
Nasdaq 100: 12,694.67 (-193.62, -1.5%)
Russel 2000: 1,945.91 (-28.94, -1.47%)
Gold Future: 1,943.60 (-3)
Oil Future: 47.78 (+0.16)
US10Y: 0.922% (+0.005)
VIX: 26.97 (+4.22)
BTC/USD: 32,478.86 (+474.28)

Asian market today

24:00 (US) ISM Mfg index
Georgia Senator Election Final Voting

Economic indicators in this week

We have no important indicator today.