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Old 28-12-2020, 20:51
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

GBP/USD. December 28, 2020 Pound falls despite achieving Brexit trade deal

The pound sterling declines on Monday despite the successful completion of post-Brexit deal negotiations. The current quote for the EUR/USD pair is 1.3480.

The UK and the European Union have nevertheless managed to agree on the terms of a trade deal, according to which free trade between Britain and the EU countries will be preserved, as well as visa-free travel and balanced access to markets and marine resources.

Starting December 31 (the date when London officially leaves the EU borders), trade deals will go without quotas and tariffs, but this does not apply to services and financial offers. Experts note that reaching an agreement is an excellent sign for the pound sterling, however, the further exchange rate will adjust to the circumstances.

EUR/USD. December 28, 2020 The pair is storming again in the last week of the outgoing year

At the beginning of the last trading week of the outgoing year, the EUR/USD pair continues to demonstrate multidirectional dynamics. In the morning the quotes reached the level of 1.2250, but immediately dropped to 1.2200.

Most of the factors that increase uncertainty in the markets have already ceased to be relevant, but the pair continues to storm. The UK was finally able to agree with the EU on Brexit, and Donald Trump in the US still approved a $2.3 trillion economic aid project adopted by Congress. These events imply a sharp rise in demand for risky assets, but the euro is in no hurry to storm resistance levels.

The fact is that many investors have gone on vacation or are waiting for new drivers, which can be taken into account in building a trading strategy for the next year.

In addition, market participants are very interested in the success of vaccination in the cut of the global economic recovery, as well as Joe Biden's policy to further stimulate the US economy. If the Fed maintains its plan to inject large amounts of money into the economy, the EUR/USD pair could rise to 1.30 early next year.
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