FX MARKET REPORT 06.11.2020

FX MARKET REPORT 06.11.2020

FX MARKET REPORT 06.11.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 06.11.2020
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FX MARKET REPORT 06.11.2020

The renewed Brexit concerns failed to exert negative impact on the pound, as the BOE’s QE expansion and the Finance Minister Rishi Sunak’s job protection scheme extension offered a double booster shot. GBP/USD trades modestly flat at 1.3133, looking to retest two-week highs of 1.3157 reached in early Asia. The sudden and strong lift-off in GBP that sent it a high of 1.3155 yesterday (05 Nov) and the subsequent strong daily closing at 1.3153 (+1.23%) was unexpected. While upward momentum has improved, GBP has to move and stay above the major resistance at 1.3200 before further sustained advance can be expected. EUR/USD is taking a bull breather, having rallied by 0.84% on Thursday to register the biggest single-day percentage gain since June 4. The pair is currently trading largely unchanged on the day near 1.1824 but is up over 1.5% this week.  October’s peak at 1.1880 is a solid resistance and while EUR could break this level, it is unlikely able to maintain a foothold above it. Next resistance is at 1.1915. Support is at 1.1785 but only a break of 1.1760 would indicate the current upward pressure has eased. The dollar edged higher in early European trade Friday, with the result of the contentious U.S. presidential election still unknown and the possibility of a legal battle likely to lead to prolonged uncertainty. The Dollar Index was up 0.1% at 92.537. USD/JPY fell 0.1% to 103.44, while the risk sensitive AUD/USD fell 0.2% to 0.7269.

The renewed Brexit concerns failed to exert negative impact on the pound, as the BOE’s QE expansion and the Finance Minister Rishi Sunak’s job protection scheme extension offered a double booster shot. GBP/USD trades modestly flat at 1.3133, looking to retest two-week highs of 1.3157 reached in early Asia. The sudden and strong lift-off in…

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