Daily Market Commentary 24th December 2020

Markets rebounded strongly in Europe, as hope of a post-Brexit trade deal improved. EU Chief negotiator Barnier, hinted that the post-Brexit trade deal was imminent and last minute. A compromise looks likely to have been met, so this will bounce markets, even without the details. It appears that Politicians still believe they can foist massive contracts upon the people and expect compliance. The devil will be in the detail and one thing is for certain, no-one will be happy. The GBP rallied strongly, trading well above 1.3500, while the EUR broke back above 1.2200.

Commodity currencies also rebounded, as the reserve currency settled, with more positive sentiment in equity markets. The massive Congressional aid and budget packages have hit an iceberg, in the President, who objected strongly to the ‘pork infested bill’, offered up to him from Congress. The concerns over deficit and debt have long been dispelled and now Congressional leaders need only convince the POTUS. The AUD rebounded to 0.7570, while the NZD moved back towards 0.7100, following a declining reserve.

Christmas is upon us all and market intend to go into it on a positive note!?