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MARKET NEWS AND CHARTS FOR DECEMBER 30, 2020

GBPCHF

report, December 30. Analysts expected a decline to 100.5 points, but actual figures came in at 104.3 points. Last month’s result was 103.7 points. However, prices of the Swiss franc will continue to lose ground against the British pound in coming sessions. This was after the UK and the EU reached a Brexit deal just days before the negotiations are expected to end. In addition to this, the United Kingdom had an impressive result on its most recent report. The country’s Nationwide Housing Price Index (HPI) for the month of December advanced by 0.8% against 0.4% expectations. The reported figure represents the sixth consecutive month of positive data. On an annual basis, the report increased by 7.3% compared with 6.7% consensus estimate and a previous record of 6.5%, the highest growth since 2014.

GBPCHF

EURAUD

Despite ending almost five (5) years of political and economic uncertainty in Europe with the UK-EU Brexit deal, the single currency will continue to falter. The reason for this was the weak figures from the EU member states’ reports. In addition to this, the new strain of COVID-19 could prolong the lockdown in Germany while it might eventually lead to a third lockdown in France. The hard lockdown in Berlin until January 10 was due to the failure of the earlier “light” lockdown to prevent coronavirus local transmissions. Germany ranked 10th on the list of countries with the highest number of infections at 1.69 million. Above the country Italy and Spain and the eight and ninth spot. Meanwhile, France is at the top 5 with 2.6 million cases. Despite France being able to tone down the number of new cases, fears that the new strain of COVID-19, which is 70% more contagious, increases the possibility of a hard lockdown in Paris.

EURAUD

EURUSD

Both the EU and the United States successfully passed their budgets for 2021 amid the political differences in the EU member states and between the US government and the congress. Earlier this month, Poland and Hungary vetoed the $1.3 trillion EU budget for the next seven (7) years. The reason for this was the EU Commission’s decision to tie the budget of each member to their compliance to the EU rule of law. Weeks after this, Germany intervened and brokered a deal between the parties involved. However, the rearranged deal was made possible with the concession of the EU Commission. On the other hand, President Donald Trump’s signing of the US budget on Sunday, December 27, ended the four (4) months of negotiations between the US institutions. However, the $2.3 trillion federal budget was higher by $200 billion from the initial proposal. The higher liquidity has a negative impact on the US dollar.

EURUSD

USDJPY

Unemployment rate in Japan fell to 2.9% in November from 3.1% in the previous month’s report. This was the lowest figure for the past four (4) months and suggests the end of the second wave of COVID-19’s impact in the labor market. Meanwhile, Jobs Applications Ratio rose to 1.06 on Friday’s report, December 24. In November, the rate was 1.04. These figures suggest that companies are starting to rehire workers despite the rising cases of COVID-19. The world’s third-largest economy also benefits from the signing of the $2.3 trillion stimulus bill in the US as this will create economic activity not just in American but in the entire world. On the other hand, US indices reached all-time high this week after the approval of the federal budget. However, it has a reverse effect on the US dollar, which is expected to continue to lose value in coming sessions. Investors should also keep an eye on the Biden effect on the market in January 2021.

USDJPY

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