TECHNICAL ANALYSIS

The GBP is the strongest and the USD is the weakest to start the trading week


Hope for Brexit. Covid Hope (stimulus and vaccine)

Last week, the GBP fell sharply due to Brexit fears. Today the GBP is the strongest as Brexit talks have been relaunched as the EU / UK extended their negotiations (once again). This has the GBP as the strongest of the major currencies. In the United States, stocks are opened higher as hopes of a bipartisan coronavirus relief and vaccine program boost safe-haven sales outside the U.S. dollar. It’s the weakest of the majors in the North American morning shot

Hope for Brexit. Covid Hope (stimulus and vaccine)

Ranges and changes show peaks in GBP pairs. Looking at the pairs against the USD, the Dollar is trading near session lows against each as North American traders enter for the day.

Ranges and changes for major currency pairs

In other markets:

  • Spot gold is trading down $ 13.13 -0.71% to $ 1,826.60.
  • Cash is trading down $ 0.03-0.13% on $ 23.91
  • WTI crude oil futures are trading up $ 0.54 or $ 1.16 to $ 47.11
  • Bitcoin on Coinbase (7-day week) is down $ 87 and $ 19,096 from Sunday’s close, but is up $ 18,100 on Friday (so around $ 1,000 as of Friday).

In the US equity pre-market, futures imply a higher opening:

  • Dow industrial average up 230 points. He rose 47.11 points on Friday
  • NASDAQ index up 45 points. He fell 27.93 points on Friday
  • S&P Index 25.5 points. It closes 4.64 points on Friday

In European equity markets, the main indices are trading solidly on the upside:

  • German DAX, + 1.1%
  • CAC of France, + 1.0%
  • UK FTSE 100 + 0.3%
  • Ibex from Spain, + 1.7%
  • Italy FTSE MIB, + 1.1%

In the US debt market, yields are rising again, with the 10-year rising about 3 basis points. The yield curve is also steeper:

US yields are higher

In the European debt market, benchmark 10-year yields are generally higher, with the exception of the Italian yield which is down -0.5 basis point

European yields are generally higher

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