Activity in the first two weeks of December was enough to make the month a relatively strong one for brokers despite volatility waning as the month progressed. Early month profitability was driven by retail clients shorting EURUSD into what ended up being a broad-based USD selloff. As the holidays approached, markets became range bound and profitability and volumes suffered, but full month figures ended up in line with 2020 averages.
Source: IS Risk Analytics Database. Past Performance is not necessarily indicative of future results
Chinese officials are hoping that incoming President Joe Biden will “restore normalcy” In China-US relations. Meanwhile, the NYSE exchange reversed its initial plan to delist 3 Chinese telecom companies. The plan to remove the companies was prompted by President Trump’s executive order imposing restrictions on firms the US government identified as being affiliated with the Chinese military. China had threatened to retaliate to the move.
After over four years of negotiations, The UK and EU finally agreed to a Brexit deal on December 24, avoiding the possibility of a no deal Brexit that would have been triggered on December 31. The deal includes a continuation of zero tariff and zero quota access for the UK to the European market.
In the wake of rising coronavirus cases and the spread of a new variant of the virus, a number of European nations have extended lockdowns that were set to expire early in January.
US coronavirus cases continued to surge in December, though the country was able to begin delivery of vaccinations mid-month. Incoming President Joe Biden has stated that dealing with the pandemic will be a top priority during his first 100 days in office. His plan includes a goal of 100 million vaccinations within the 100-day timeframe.