c(29 December 2020)DAILY MARKET BRIEF 2: US dollar is bearish again

In the commodity market, oil prices rose on Tuesday, as investors expect an increase in fuel demand. Trump signed a massive stimulus package while the House of Representatives voted to increase payments to Americans to $2,000, which would support crude demand. Also, the European Union and Britain agreed on a trade deal, which also bodes well for crude. Currently, WTI is up 0.80% to $48, and Brent has gained 0.69%, to $51.25.

Gold is also bullish on Tuesday morning after the House of Representatives passed a bill to increase household checks to $2,000. The metal is now up 0.10% to $1,882.

In FX, the US dollar is bearish again, as the second round of stimulus in the US is supporting risk assets. The USD Index, which tracks the greenback in pair with six other currencies, fell 0.23% to 90.067. EUR/USD is up 0.20% to 1.2239. The risk appetite also rose on the Brexit trade agreement secured last week. The ongoing optimism might maintain the pressure on the US dollar, especially as the vaccination campaign is ramping up.

Both AUD/USD and NZD/USD have increased by more than 0.20%. On Monday, markets in Australia and New Zealand were closed for Boxing Day.

The pound is bullish against both the USD and the euro as investors analyze the text of the Brexit trade agreement, which was released on Saturday.

By Strategy Desk