Oil hits 9-month high

DAX30 – Daily Candlesticks
Source: GKFX / MT4 (December 14, 2020)
DAX30 can’t seem to make a clean breakout above major resistance that has formed at 13,300. The break below the short term rising trendline could be a signal the DAX needs to correct lower once again after bailing to breakout.
• Brent and WTI crude futures hit 9-month high
• US stocks close lower as vaccines rollout
• Sterling volatile as ‘No trade deal’ fears ease
• UK discovers new ‘variant’ of coronavirus
• Electoral College voted on Monday to confirm Joe Biden officially as President
• Gold swings lower alongside the US dollar
• DAY AHEAD: China industrial production, China retail sales, UK unemployment, US I.P
Source: GKFX / MT4 (December 14, 2020)
DAX30 can’t seem to make a clean breakout above major resistance that has formed at 13,300. The break below the short term rising trendline could be a signal the DAX needs to correct lower once again after bailing to breakout.
TAKEAWAYS
• Brent and WTI crude futures hit 9-month high
• US stocks close lower as vaccines rollout
• Sterling volatile as ‘No trade deal’ fears ease
• UK discovers new ‘variant’ of coronavirus
• Electoral College voted on Monday to confirm Joe Biden officially as President
• Gold swings lower alongside the US dollar
• DAY AHEAD: China industrial production, China retail sales, UK unemployment, US I.P
GURU WISDOM
“He who has a why to live can bear almost any how.” —Friedrich Nietzsche
MARKETS
*Daily closing price
↗ EUR/USD 1.2148 (+0.12%)
↗ GBP/USD 1.3325 (+0.06%)
↗ USD/JPY 104.02 (+0.05%)
↘ S&P 500 3647.49 (-0.44%)
↘ Hang Seng 26,389.52 (-0.44%)
↘ Gold 1828.09 (-0.54%)
↗ Oil (Brent) 50.32 (+0.48%)
↗ Bitcoin 19,184.0 (+0.02%)
NEWS
WTI breaking out
Oil made a fresh 9-month high on Monday with Brent crude closing back over the closely-watched $50 per barrel level. The price gains were capped by OPEC cutting its 2021 demand forecast in its monthly report released Monday, citing higher covid cases that are likely to rise further over the winter.The optimism around the early-stage rollout of vaccines has played well for oil markets which is trading higher alongside other ’reopening’ trades. The biggest downside risk is in the near term, whereby oil demand can suffer at the hand of wide-scale lockdowns, which just started in Germany and the UK and some expect in the United States.
New variant
Market reaction has been muted so far but any news about a ‘new variant’ or ‘new strain’ would be about as bad news as can be expected. UK Health Secretary Matt Hancock suggested the new variant is growing faster than existing variants. The biggest worry that would unwind all the vaccine-led optimism in and out of financial markets would be if the recently-approved vaccines are ineffective on the new variant/strain. This is not known to be the case.
Biden wins
Joe Biden has taken another step towards the White House on Monday by officially being nominated by the Electoral Colleges that cast their votes for president. Each Electoral College represents a different number of seats of which Biden has a clear majority. It’s nearly a foregone conclusion that Biden will be the next US president but President Trump’s claims of voter fraud mean the process is a little less certain than usual. Biden will only officially become president according to the US constitution when he is inaugurated in January.
DAY AHEAD
*Times in GMT
02:00 CNY Industrial Production (YoY)(Nov) 6.9 %
02:00 CNY Retail Sales (YoY)(Nov) 4.3 %
07:00 GBP Claimant Count Change(Nov) 50 K -29.8 K
07:00 GBP ILO Unemployment Rate (3M)(Oct) 5.1 % 4.8 %
14:15 USD Industrial Production (MoM)(Nov) 0.3 % 1.1 %