STATE OF THE MARKETS

Sentiments waned amid weaker Dollar. The new US stimulus bill has sent Dollar lower, to a level not seen since March 2018, while it’s peers surged higher with Euro, Aussie and Sterling all reaching their 52 weeks high today. In the final days of trading for the year, global equities are mixed with US and Europe grinding lower while Asian equities generally grinding higher. Bond yields relatively flat with high beta currencies are in favor.

Crude continue to edge higher, above $48.50/bl, as markets expect a return on demand as vaccine roll-out took its course by next Spring while inventories dropped more than expected at Cushing. The anti-inflationary asset gold continue to grind higher, above $1,894/oz, amid weaker sentiment as yields differentials for junk and investment grade bond trended higher.

In the FX space, while Dollar continue to lose ground, safe-haven Swiss remains in demand for the long term as Aussie, Euro and Kiwi continue trending higher; suggesting the rally is about to be over soon. Any negative surprise on the vaccine front, might trigger safe-haven rallies in the medium-term accounts.

OUR PICK – No New Pick

No new pick for the year end due to thin markets. Year end is the time to reflect upon our performances and what have we done well and what could have been better. How good have we been in following our processes and procedures in the trading plan. Have we able to achieve our yearly goals with the plan. How has the markets changed for the past 12 months and how well we navigated those changes. Anything new that need to be incorporated into the plan if markets dynamics have changed. These are all questions we have for ourselves and we believe you should ask yourselves too. Happy holidays and may 2021 bring you greater success and profits.