Daily Market Analysis

Market Focus

While the US stocks market retreated from session highs after protestors stormed the US Capitol, forcing a lockdown that interrupted certification of the presidential election, the equity market still managed to stabilize in the green. The SP 500 trimmed its advance to 0.6% at the close of trading in New York, after rallying as much as 1.5% earlier today. Equities had been on track for a record, buoyed by likely Democratic control of Congress that could unleash a torrent of spending to revive growth. That sparked a relation trade, with investors pouring into small caps and banks, companies that benefit from an economic rebound. Tech shares lagged behind.

The buoyant mood was pierced, but not sunk, when Vice President Mike Pence left the floor of Congress as hundreds of protestors swarmed past barricades surrounding the building where lawmakers were debating Joe Biden’s victory in the Electoral College.

Democrats claimed one of the two Senate seats contested in Georgia and led in the other tight race. Two wins would giver Biden’s party control of Congress and smooth the path for some of his spending policies. That’s fueled bets that increased stimulus will boost the economy and spark inflation. The 10-year Treasury yield climbed past 1% for the first time since March.

Congress passed at year’s end a $900 billion spending deal to bolster an economy showing signs of slowing as the raging virus prompts stricter lockdowns across the country. The number of employees at US businesses unexpectedly declined in Dec for the first time since Apr. US 10-year breakeven, a market gauge of inflation expectations over the next decade, topped 2% this week for the first time since 2018.

Market Wrap

Main Pairs Movement

Risk-appetite pushed the aussie higher against its American rival, with the pair nearing April 2018 high at 0.7812. USDJPY, on the other hand, stages a modest recovery from multi-month lows set earlier this Wednesday. The underlying bullish tone undermined the safe-haven JPY and remained supportive. The prevalent greenback selling bias might cap gains as the focus shifts to FOMC minutes. Cable has recovered above 1.36 as the risk appetite put a cap to the greenback’s advance.

The pessimism surrounding the dollar remains well and sound early in 2021, with DXY dropping to new lows in the 89.20 area on Wednesday. The front-month futures contract for the American benchmark for light sweet crude oil (WTI) has survived a brief pre-US session dip below the $50 level and has recently recovered back above the $50.50 level to set fresh highs since Feb 2020.

Technical Analysis:

EURUSD (4 Hour Chart)

EURUSD has retreated from the highs above 1.23 zone earlier Wednesday, but immediately regained its bullish movement as the pair was last seen trading around 1.2288 at the time of writing. The bearish theme surrounding the greenback continues to be the main driver for EURUSD’s upward trend. However, given that the uncertainty that revolves around the coronavirus situations is a huge factor that can deteriorate the market sentiment instantly, the demand for safe-haven asset still has the ability to revive the greenback during times of worsening global pandemic situations. Overall, the EURUSD is likely to advance further as its upward trend is supported by the 15-Day SMAVG. On top of that, with the RSI now sitting around 60, room has been cleared for the pair to proceed upward. If the EURUSD can find acceptance above 1.2338, the next resistance would be found around 1.23765 (a price zone last seen in Apr 2018). On the flip side, a strong support can be seen around 1.2259, followed by 1.2205.

Resistance: 1.2338

Support: 1.2259, 1.2205, 1.2164, 1.2121

USDCAD (4 Hour Chart)

The Loonie recovered substantially from its multi-year lows at 1.2630, which it reached during the early European session, and is currently trading around 1.2715, nearly a 20% bounce back. Nevertheless, in the bigger picture, the Loonie pair remains its downward sloping movement as the Oil continues to surge (the WTI is trading above the $50 territory) and the overall risk-on sentiment keeps weighing down on the demand for the greenback. From a technical perspective, the bearish momentum of the Loonie is supported by the 60-Day SMAVG. But the intersecting MACD line and signal line is indicating that the recent rebound of the pair may have overturned the short-term selloff pattern of USDCAD. A positive move above 1.2735 may trigger a short-term recovery of the bearish Loonie. On the flip side, the short-lived daily lows around 1.2652 would become the most immediate support for the pair.

Resistance: 1.2816, 1.2773, 1.2735

Support: 1.2673, 1.2652

XAUUSD (4 Hour Chart)

Gold made a sharp correction from its 2-month high, nearing the $1960 zone, to around $1900, which is a strong, psychological support at the time of writing. The news of the Democrats managed to secure control of the Congress by winning both available seats in Tuesday’s Georgia Senate elections spurred the bond market on Wednesday. Essentially, the greater fiscal stimulus from a Democrat-controlled Congress would imply more US government debt issuance, which exerts downwards pressure of US government bond prices and holds upwards pressure on US bond yields. With yields and debt rising, investors are likely to switch their targets from safe-haven metals to US government debt. From a technical perspective, the gold’s bullish movement remains supported by the 15-Day SMAVG. Thus, it is likely that the XAUUSD would resume its upward movement after this round of profit-taking wears off. Conversely, if the bears can find acceptance below 1900, an extensive decline can be expected.

Resistance: 1933.35, 1947.55

Support: 1905, 1900, 1888

Economic Data

Click here to view today’s important economic data.

Dear Client,

New contracts will automatically rolled-over as follow.

The rollover in this month is the last time of VIX (Volatility Index) and USDX (United States Dollar Index), and the futures contract will be switched to spot contract after that.

Please note:
• The rollover will be automatic, and any existing open positions will remain open.
• Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.
• To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.
• Clients should ensure that take profits and stop losses are adjusted before this rollover occurs.

If you have any questions, our team will be happy to answer your questions.Please mail to [email protected] or contact the service online.

Daily Market Analysis

Market Focus

Stocks rose and bonds dropped amid key elections in Georgia that will decide which party controls the U.S. Senate for the next two years, setting the scope of President-elect Joe Biden’s agenda.

In a session marked by thin trading volume, the S&P 500 rebounded after suffering its worst start to a year since 2016. Energy stocks surged as oil traded near $50 a barrel, and the Russell 2000 Index of smaller companies jumped 2%. While markets have been factoring in a greater chance of a Democratic sweep in Tuesday’s election, some analysts see the potential for increased volatility. In anticipation to the outcome of the vote, which will likely be known on Wednesday, Treasury yields climbed — with a key curve measure reaching its steepest level in four years.

Whether or not Wall Street is getting more comfortable with the idea of Democrats taking control of both chambers of Congress, the scenario implies the possibility of a more generous stimulus package. That could also potentially lead to upward pressure on inflation and interest rates as well as higher taxes to pay for fiscal aid. Conversely, should Republican incumbent win re-election, the party would have enough votes to block any Biden initiative.

Market Wrap

Main Pairs Movement

A gauge of the dollar traded near its lowest level since February 2018 amid corporate hedging flows, rising inflation expectations and as commodity currencies surged following an agreement by oil exporting countries to cut supply. Treasury Secretary Steven Mnuchin called NYSE Group Inc. President Tuesday to express his disapproval with the exchange’s surprise decision to spare three major Chinese telecommunications companies from being delisted, according to two people familiar with the matter.

The euro trades up 0.4% to 1.2300 after trading as high as 1.2305. Hedging flows were two-way in the currency with sellers of the pair at 1.2300/1.2280 while buyers of the pair emerged at ~1.2260, upcoming option strikes at 1.2300 are also supportive.

The pound is up 0.4% to 1.3630; Sterling saw corporate action ~1.3580 according internal trader. USD/JPY is on pace for a three-day drop; fell as much as 0.5% to 102.61, the lowest since March, after decent sized corporate sales materialized near 103.00, the New York trader said.

Technical Analysis:

XAUUSD (4 Hour Chart)

On Tuesday, the gold extend it previously edged up position to almost two-month high at 1952.69 which was set up to secondary pivot resistance as we mention yesterday. At the meantime, gold market rallied also be driven by greenback depreciation pressure as it fell under 90. For Moving Average perspective, short- and long-term indicators remained upward trend, moreover, short term indicator turn sharply ascend in recent. For RSI aspect, indicator has set up over 70 that settle gird 75 in over bought zone, suggesting over torrid at this stage. Therefore, we expect gold market would take a break in short term while market seemingly overextended at currently stage.

Resistance: 1955, 1965

Support: 1936.6, 192.17, 1904

USDCHF (4 Hour Chart)

Swiss franc has dropped at 0.87833 which is 5 years ago lowest level. As price action, swiss franc breakthrough a yellow upward trend support that tamp down it position to currently low. For RSI aspect, indicator drop to 36, suggestion a bearish guidance at this stage. For Moving Average aspect, short term indicator was death cross long term couple days ago and short one asymptotically fell that following investor sentiment ahead.

Indisputably, Swiss franc appreciation to record setting rock-bottom amid weakness greenback and dollar traumatize by rising inflation expectation. At the same time, combing indicators suggestion that expect ongoing bearish ahead for short run at least.

Resistance: 0.8795, 0.8813

Support: 0.8775

AUDUSD (4 Hour Chart)

After unexpected slipped to 0.7647 bottom yesterday, Aussie pull back to 2-year-long peak at 0.7778 and set around 0.7763 at market close, advancing by 1.1%. Meanwhile, net AUD short positions increased moderately last week but remain well below their recent highs. For RSI aspect, indicator close at 64 gird which suggesting a bullish sentiment for short term at least. Meanwhile, short term SMAVG is still propel at upward slope, supporting short run market momentum.

Of note for the weeks ahead, Sino-Australian tensions could be a stumbling block for the Aussie and, moreover, the RBA’s QE policy could be tempering the attraction of the AUD.

Resistance: 0.7778, 0.7802

Support: 0.7691, 0.7647, 0.7621

Economic Data

Click here to view today’s important economic data.

Dear Client,

Due to changes made by our liquidity provider, there are two Index Futures will be permanently switched to Index Cash:
1. USDX,
2. VIX.

★ When the date switch from January 13th to 14th 2021, USDX will have the last rollover. After January 14th 2021, it will be subject to overnight financing charges.

★ When the date switch from January 14th to 15th 2021, VIX will have the last rollover. After January 15th 2021, it will be subject to overnight financing charges.

★ Indicative financing charges for 1 lot of USDX/VIX index for 1 day are as follow:

Please note these are indicative charges and are subject to changes.

If you’d like more information, please don’t hesitate to contact [email protected].

Daily Market Analysis

Market Focus

Volatility gripped financial market, spurring a stock selloff amid concern that a surge in global coronavirus cases could crimp the nascent economic recovery. Traders were also jittery ahead of Tuesday’s runoff elections in Georgia, which will determine whether Democrats have control of Congress to push President-elect Joe Biden’s agenda.

While equities pared a slide that drove major US benchmarks down more than 2% earlier Monday, the S&P500 still had its worst day in almost 10 weeks. Giants Apple Inc. and Amazon.com Inc. sank at least 2.1%, Boeing Co. weighed on the Dow jones Industrial Average after an analyst downgrade, and Tesla Inc. climbed after coming close to meeting its vehicle-deliveries goal. The Cboe Volatility Index surged the most since October.

UK PM Boris Johnson imposed a third coronavirus lockdown across England, shutting schools and ordering the public to stay at home, amid dire warnings that the National Health Service is at risk of being overwhelmed. The emergency measures will start immediately and last until at least Feb. 15, potentially devasting retail and hospitality businesses and threatening to push the economy into a double-dip recession, as medics try to get a grip on the pandemic.

According to John Stoltzfus, chief investment strategist at Oppemheimer, “Equity markets will remain sensitive to developments tied to the pandemic that have held the US and global economy hostage for nearly a year. A nearer hurdle for the markets to consider will be the outcome of the runoff elections for two seats in the US Senate taking place in Georgia. Should the Democrats win both seats, we expect the S&P 500 to become vulnerable to a downdraft in the neighborhood of 6% to 10% from the end of 2020.”

Market Wrap

Main Pairs Movement

EURUSD is trading below 1.23, up on the day but off the highs. The market mood has somewhat soured as concerns about the resurgence of coronavirus is outweighing vaccine hopes. Tensions are mounting ahead of Tuesday’s special elections in Georgia. US equities plummeted after reaching record highs, backing the greenback during US trading hours. Mounting coronavirus concerns and tougher restrictive measures weighed on sentiment. The Loonie pair dropped to its lowest level since April 2018 at 1.2663 on Monday but reversed its course in the second half of the day. The DXY starts the new year on the negative side and extends the drop to fresh lows in the 89.40 region, but has now reversed the trend and is currently sitting at 89.900 as of writing.

WTI is trading at $47.71 between a range of $47.28 and $49.80 bbls. The price of a barrel of oil dropped from multi-month highs in volatile trade to start the year.

Technical Analysis:

XAUUSD (4 Hour Chart)

On Monday, the gold exhibits an extensive rally that topped at $1945 from the low of $1904, and the yellow metal is currently trading around $1940. The worsening global Covid situations and hopes for more inflow of monetary and fiscal support have significantly boosted investors’ interests in acquiring safe-haven assets, such as Gold and cryptocurrency, in the first trading day of 2021. Another indicator for the bullish momentum of gold can be found in the continually weakening DXY, the rate of DXY has be found trading near 89.425 at one point in the earlier session today.

From a technical perspective, with the 20-Day SMAVG crosses above the longer-period 60-Day SMAVG and the MACD line sets well above the signal line, it is inferable that a bullish momentum of Gold is well-supported, at least in the short-term. Another notable trend is that the reading of RSI has been hovering above the overbought threshold for quite some time, suggesting the bulls are dominating the trading bias for the pair, nonetheless, that also means a downward correction is likely. If the bulls can penetrate the resistance at $1945.39, the bulls can see to cap their profit at $1952.39. Conversely, the bears would need to find acceptance below the most immediate support at $1917 to bring XAUUSD back down below the $1900 zone.

Resistance: 1952.69, 1945.39

Support: 1917.53, 1897.97, 1888.50, 1876.53

GBPUSD (4 Hour Chart)

Investors for GBPUSD are anticipating the UK PM Johnson to announce a new and stricter nationwide lockdown amid an increase in Covid cases, which in turn, drag down the price of Cable substantially from the high of 1.37 to the lowest of 1.3542. The sharp decline of GBPUSD pulled down the RSI from the overbought region to around 44 at the time of writing, indicating a bearish sentiment is spread out across investors. However, given that the 15-Day SMAVG is still supporting a bullish move, it is reasonable to assume that it would not be a prudent move to place additional short positions of the Cable pair as of now, especially the Britain has begun to administer the AstraZeneca vaccine on Monday.

Resistance: 1.3629, 1.3702

Support: 1.3555, 1.3471, 1.3407

USDJPY (4 Hour Chart)

After bottoming at nine-month lows of 102.71, USDJPY bounced back extensively, the pair is trading around 103.12 at the moment. The rebound of USDJPY is possibly supported by the declining US equity markets. All three major index of Wall Street have once fallen by 2% today, this reversal of trading to the downside across US equities helped boost the demand of greenback, and in turn, supported the USDJPY to stage a rebound from the nine-month lows. From a technical perspective, the USDJPY continues to stay bearish as the 60-Day SMAVG is fluctuating above the 15-Day SMAVG. Additionally, the rally of the pair has seemed to pause as the RSI is no longer raising after it reached the 50ish neutral line. If the USDJPY bulls want to stage a confirmative recovery, the pair must first find acceptance above 103.27 resistance. Conversely, if USDJPY loses grounds at 103.02 support, it is likely that the pair would resume its declining tendency.

Resistance: 103.27, 103.47, 103.66

Support: 103.02, 102.75

Economic Data

Click here to view today’s important economic data.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

If you’d like more information, please don’t hesitate to contact [email protected].

Daily Market Analysis

Market Focus

Markets are relatively quiet on the last day of 2020, with global stocks indexes remaining near record highs and the dollar at the weakest level in two years. US markets fluctuate between small gains and losses as volumes are subdued, about 40% below average for the time of day.

China and the European Commission has officially announced the comprehensive agreement on investment, granting each region’s businesses better access to each other’s market. At the same time, this agreement also will significantly improve the level playing field for EU investors on Chinese state- owned enterprises, prohibiting forced technology transfers and other distortive practices, and enhancing transparency of subsidies.

Wall Street revives hope on Bitcoin ETF with new SEC filing after several rejection for years. VanEck Associates Corp. has started a new push to launch an ETF tracking Bitcoin as VanEck may be betting that a change in SEC leadership, with Jay Clayton stepping down and the new SEC chairman having a softer line. According to the recent filing, VanEck’s ETF plans to hold Bitcoin and is going to value its shares based on prices.

Market Wrap

Main Pairs Movement

The Euro dollar gives up some ground against the greenback after reaching a fresh 2020 high yesterday. The EUR/USD pair is down as profit- taking after a new high. The greenback remained the doubtful honor of being the weakest currency across the foreign currency board, undermined by virus concerns.

The British Pound strengthens against the greenback after Brexit agreement. As the year of 2020 approaches to an end, the British government is confident for significant changes at the boarder with the EU in 2021. However, the economic outlook for the pair remains bleak as the trade deal seems to not extend to services or the financial industry; in the meantime, there is concerns on Scotland, which voted to remain in the EU in 2016, could seek to leave the UK. Thus, despite the British Pound remains relatively well supported in 2021, it is hard to say that there are not serious doubts about the road ahead.

Technical Analysis:

EURUSD (Daily Chart)

The EUR/USD pair manages to touch the first target at 1.2305 and attempts to breach it. The pair remains bullish since the bullish channel and the SMAs continues to push the price to achieve more gains. Bullish momentum will get discouraged if the pair retreats to 1.2178, 1.2000 threshold, but should be an adjustment unless the pair falls all the way to 1.1875, 1.18 threshold.

Resistance: 1.2305

Support: 1.2271, 1.1967, 1.1875

GBPUSD (4 Hour Chart)

On the 4- hour chart, the GBP/USD pair continues to climb up as the year of 2020 comes to an end. The pair manages to contest the resistance of 1.3672, and is expected to see a correction in the price range from 1.3673- 1.3602. At the same time, the RSI indicator also shows an overbought condition, which will bring the pair down a little as well as suggested by Bollinger Band, currently trading on the upper bound. Overall, the bullish condition is optimistic as it is well located above the 50 SMA and the 100 SMA.

Resistance: 1.3686

Support: 1.3602, 1.3556, 1.3475

NZDUSD (4 Hour Chart)

The NZD/USD pair continues to stay in the bullish channel despite of a sudden pullback after contesting the resistance of 0.7241. The pair remains above the 50 SMA and above the mean of Bollinger Band on the 4-hour chart. It is expected to see the pair continues to rise after the RSI indicator drops below the overbought region. As of now, the pair resumes its bullish rally to move away from the support of 0.7485, reinforcing the expectations of continuing the main bullish trend, which its next target located at 0.7241.

Resistance: 0.7241

Support: 0.7185, 0.7150, 0.7122

Economic Data

Click here to view today’s important economic data.

VT Markets, a multi-award winning CFD broker under Vantage International Group, today launched their new branding and new website, which are intended to represent the company’s core values and reflect a further dedication to client success and relationships.

Coinciding with the unveiling of the new branding, VT Markets launched an updated corporate website (www.vtmarkets.com) focused on providing clients with more information about the products, services, and platforms offered. This rebrand solidifies the company’s stance as a strong competitor in this industry offering extraordinary client services.

Chris Nelson-Smith, the director of VT Markets, said:

“2020 has been a huge year for VT Markets, the brand is one of the fastest growing brokers in SEA and benefited hugely from organic growth in the EU region in 2020. We are excited to extend our presence and build on our rapid growth in these regions, expanding further into South-East Asia and Europe.

“We recognized the huge diversity in markets across the APAC region. We listened to our clients and customised our offerings to deliver the best products for all our market participants. Our trading environment is second to none and our client base in the APAC regions delivered significant trading volume in 1H 2020, giving us the platform to build into the EU region and beyond.

“Our new Client Portal provides total transparency, together with the key features and additional analytics required to track and review your performance in a single crisp, clean platform. We are proud of our revamped offering that will continue to deliver the highest level of services to our customers and give us an edge as we expand our global footprint further into South America and Africa.

“We are already seeing growth in these regions and see them as key to our ongoing strength and success in 2021 and we are excited for what the new year will bring.”

The new VT Markets logo is an evolution of the company’s previous logo, with a much more modern look alongside the upgraded website design, which embodies VT Markets’ passion, energy, determination and pursuing innovative breakthrough to become a brand for a next generation of traders and be right by their side when they need us.

For more information, please visit vtmarkets.com and follow us on LinkedIn, Facebook and Twitter.

About VT Markets

VT markets, based in Sydney, Australia, is a subsidiary of VT Markets LLC (VIG), and leverages more than 10 years of experience and expertise in global financial markets to offer easy and transparent market access and help our clients pursue their financial goals. Founded in 2016, VT markets has applied advanced technical support in the retail FX market to provide clients with superior trading experience.

Dear Client,
Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

If you have any questions, our team will be happy to answer your questions. Please mail to [email protected] or contact the service online.

Dear Client,
Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

If you have any questions, our team will be happy to answer your questions. Please mail to [email protected] or contact the service online.