FX MARKET REPORT 05.11.2020

FX MARKET REPORT 05.11.2020

FX MARKET REPORT 05.11.2020

Daily Commentary
FX MARKET REPORT 05.11.2020
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FX MARKET REPORT 05.11.2020

The GBP/USD pair rallied around 60-65 pips post-BoE announcement and shot to fresh session tops, around the key 1.3000 psychological mark, albeit lacking follow-through. The supporting factor, to a larger extent, was offset by a larger than expected increase in the size of the BoE’s asset purchase program, which now stands at £875 billion, up from £745 billion prior. EUR/USD is set to test 1.15-1.20 range resistance as US election risk eases. The European Central Bank (ECB) assuring more PEPP and funding support should reduce regional lockdown fiscal blowout risks. EUR/USD could edge higher in the near-term, although a move to 1.1880 is not favoured for the time being. Further EUR strength is not ruled out but it is too soon to expect a move towards last month’s top at 1.1880. On a shorter-term note, 1.1855 is already quite a strong level. All in, the bias for EUR appears to be tilted to the upside with 1.1550 acting as a key support. Dollar Index was down 0.1% at 93.312. USD/JPY fell 0.1% to 104.38, while the risk sensitive AUD/USD rose 0.2% to 0.7187.

The GBP/USD pair rallied around 60-65 pips post-BoE announcement and shot to fresh session tops, around the key 1.3000 psychological mark, albeit lacking follow-through. The supporting factor, to a larger extent, was offset by a larger than expected increase in the size of the BoE’s asset purchase program, which now stands at £875 billion, up…

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