Market is in risk appetite mode due to Brexit negotiation and US stimulus package hopes.Last stimulus package was march and current stimulus package is 900 billion as less than half of the last package.
EUR/USD,GBP/USD,AUD/USD,NZD/USD are in strong gain due to US stimulus hopes and us poor job data and Fed chairman realizes that interest should be lower next few years.Thus USD is becoming weaker and without strong data fed will not changes it’s mind.So before this summer there is less chances that USD will be strong.But due to profit taking and brexit drama,dollar index may make some gain or correction in the near term.
Gold is the mostly has over performed in this week due to US stimulus package.Under 1900 it will not gain more,but if it can hit 1900 and hold the value for daily chart then more gain is possible.Current forecast is for gold is 1925 in December 2020.After touching 1925 it may go down again,but current movement is still under observation due to US stimulus package may come soon in x-mas.
Stock is getting higher and hit all time high in this week,equation is simple as fed wants to keep interest rates lower and inject stimulus package and bond purchases program makes the investor more comfortable to make the stock higher.But stock may get some correction after stimulus package is done.
Be careful about your position in December market may get more volatile.
Stay home Stay safe.Happy new year 2021.
Note:This article is for education and learning,Forex & stock are high risk and high gain business,so invest here with your own analysis and research.
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