With time running out the UK & EU have finally come to agreement over a trade deal which will allow tariff free trade of goods in 2021. However, the devil is in the details and the deal will not apply to services or the financial sector, leave close to 80% of the UK economy out of the deal.
More than five years on from the initial Brexit vote the deal still leaves many unanswered questions but is meant to provide a basis for cooperation in the future.
The GBP rallied slightly on the news to 1.355 but is still below the $1.36 levels seen earlier in the month when optimism on the deal was higher.
Overall reaction to the deal can be best described as lukewarm and the agreement is still subject to a parliamentary vote on December 30th.
S&P 500 rallies closer the all-time high,
U.S. indices moved closer to all-time highs this week as Initial Jobless Claims fell, despite an increase in COVID-19 cases.
The S&P 500, NASDAQ and Dow Jones all edged closer to record highs this Christmas as Initial claims for state unemployment benefits fell 89,000 to 803,000.
This data was released for the week which ended December 19th and was lower than the forecasted sum of 885,000 applications.
Indices in the U.S. have been on the rise since the markets dropped in March, following the initial peak of the COVID-19 pandemic.
Many believe that markets could continue in an upward trajectory next year as a vaccine begins to circulate.
Yet another Bitcoin record high, what next?
Remember when BTCUSD dropped to an intraday low under $3,600 in March, well this week saw the value of the world’s largest cryptocurrency rally over $23,000.
Bitcoin climbed to a high of $24,000 this week, as bulls continue to push the price of the coin.
This comes despite the news that Cryptocurrency XRP sank nearly 25% to around 35 cents Wednesday morning as the SEC filed a lawsuit against two of the executives behind the technology.
Crypto markets are likely to continue to draw widespread interest from investors looking for safe haven assets as the COVID-19 pandemic continues to impact everyday life.
Many believe we could see BTC head to as much as $30,000 to end the year.
Quote of the day – “When there is a crisis, that’s when some are interested in getting out and that’s when we are interested in getting in”Carlos Slim
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Senior Market Analyst