Investing.com investing.com 24 Dec, 2020 09:00 am

For Markets It's All About Brexit Deal Hopes And Ongoing Vaccine Distribution

For Markets It's All About Brexit Deal Hopes And Ongoing Vaccine Distribution
Market Overview Analysis by Stephen Innes covering: EUR/USD, GBP/USD, AUD/USD, EUR/GBP. Read Stephen Innes's latest article on Investing.com

The market dismissed President Trump's veto threat as largely irrelevant noise while turning the focus on the Brexit deal where the odds of a pre-Xmas trade agreement accelerated if the latest run headlines are for real.All about Brexit Weaker US economic data and sterling's repricing higher on the back of hopes for a pre-holiday Brexit deal saw the dollar traded broadly lower.FX traders are still trying to squeeze the last bit of juice out of the Brexit deal before heading home for Christmas.Still, the underlying story remains a vaccine driven theme entirely, where the projected acceleration in the pace of vaccinations through H1 should, in turn, drive much stronger services consumption and support both the rally in stocks and oil , where the gains will be mostly frontloaded in Q2.

The long vaccine runway suggests more price evolution in 2021 for stocks and oil.As such, there has been mildly correlated backtracking on the remarkable US market's price action overnight with stocks and oil coming off the boil a touch but still simmering.

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