Daily Market Commentary 22nd December 2020

European markets were in turmoil overnight, panicked by fear over the new strain of virus, spreading across Britain and Europe. Equity markets were in a tail spin over the new virus and questions over treatments and vaccine effectiveness arose. The uncertainty did not help the GBP, which slipped to 1.3330, while post-Brexit trade talks hover over the impasse. The EUR traded 1.2230, despite the trade talks stalemate and negative consumer confidence data, released overnight.

US stock markets also plunged on the open, over fears of a new strain of the virus, but fought back strongly through out the trading day. US markets were more focused on the Congressional bailout package, of $900+ Billion, which has finally been agreed. Markets rallied back into positive territory and the Dollar settled back down. The commodity currencies roared back, with the AUD looking to regain 0.7600, while the NZD rebounded to 0.7100.

It has been a volatile year and overnight trade was emblematic of this.