(17 December 2020)DAILY MARKET BRIEF 2:Bitcoin exceeded the $20,000

In the commodity market, oil prices rose to a nine-month high after the US reported a decline in crude stockpiles last week and amid stimulus hopes. Both the WTI and Brent are up over 1% to the highest level since the beginning of March. The Energy Information Administration said that crude inventories in the US had dropped by 3.1 million barrels last week, while analysts expected a draw of 1.9 million barrels.

Gold is gaining traction after the Fed signaled that it would maintain the near-zero rates through 2023. The metal is up 0.83% to 1,874.

In FX, the US dollar can’t find any reliable support, as the Fed continues with its loose monetary policy, the US government is about to back another stimulus package, while the fragile Brexit optimism is favoring the euro. The USD Index dropped below 90 for the first time in over two years. EUR/USD is up 0.31% to 1.2234.

The pound rose against both majors as European chief executive Ursula von der Leyen revealed that progress has been made in the Brexit talks and that the next few days would be decisive.

Bitcoin exceeded the $20,000 mark for the first time ever and jumped to almost $23,000 following months of cash inflows from institutional investors, including traditional ones.