The UK Parliament passed the post-Brexit trade agreement between the UK and EU overnight, while vaccine distributions continue, combatting the surging virus. The UK and Europe can write off 2020 and incumbent politicians will put all the blame on the Coronavirus. All the deficits and debt, accumulated at record levels, will be blamed upon the virus. The coming year will be a fresh start with the distribution of various vaccines across the world. The ruling class may not get away with the severe social controls the have imposed in 2020.
The latest restrictions are supposedly for mutating variations of the virus, but that is the nature of the beast, it is a mutating virus. If the reaction is to go into lock-downs every time there is a surge in the virus, then Governments will be reminded of their folly pretty quickly, by the people. Economies need to reopen with restrictions imposed only on the sick and vulnerable. The US Dollar continues to lose ground, across the board, as Congress passes further massive bail-out bills. Fiscal and Monetary largesse is undermining the reserve currency. The GBP surged to 1.3600, while the EUR pushed up to 1.2280, assisted by the overdue trade agreement.
Commodity currencies have been major beneficiaries of the weaker Dollar and the advantages of Island isolation, ensuring economies can operate while controlling the spread of the virus. The AUD surged up to 0.7680, while the NZD tests 0.7200, closing out the year.