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FX MARKET REPORT 10.11.2020

FX MARKET REPORT 10.11.2020
Daily Commentary
FX MARKET REPORT 10.11.2020
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FX MARKET REPORT 10.11.2020

GBP/USD recedes to 1.3160 during the initial hour of Tuesday’s Asian session. The pair refreshed the two-month peak on Monday but failed to stay positive beyond 1.3200. However, bullish signals from the MACD joins strong RSI, not near the overbought region, favor the GBP/USD buyers to keep the optimism while targeting a resistance line stretched from September 10, at 1.3246 now. In doing so, a clear break above the recent high of 1.3208 becomes necessary. While the quote is likely to post another U-turn from the mid-1.3200 area, any further upside can be challenged by the August 18 high near 1.3270, a break of which could challenge the yearly top surrounding 1.3485. EUR/USD bounces from key support, as treasury yields yield retreat from five-month highs, weakening demand for the US dollar.  The pair is currently trading at session highs near 1.1835, having found bids around the ascending 5-day simple moving average (SMA) at 1.1812. The dollar is losing altitude against most majors, possibly tracking the decline in the US 10-year yield to 0.91% from the five-month high of 0.97%. Markets seem to be reassessing the optimism generated by the US drugmaker Pfizer’s disclosure of the positive initial trial results of its coronavirus vaccine. Dollar Index was up 0.1% at 92.778, above Monday’s 10-week low of 92.12. USD/JPY fell 0.3% to 105.03, while the risk sensitive AUD/USD fell 0.1% to 0.7278, near Monday’s seven-week high.

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