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FX MARKET REPORT 15.10.2020

FX MARKET REPORT 15.10.2020
Daily Commentary
FX MARKET REPORT 15.10.2020
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FX MARKET REPORT 15.10.2020

GBP/USD is battling 1.3000, as the bulls take a breather ahead of the two-day European Union (EU) Summit, starting today. The 4-hour EUR/USD chart is showing that critical support at 1.1720 is in danger as the EUR/USD pair trades at its daily low of 1.1735 at the time of writing. Concerns that a resurgence in the Covid-19 pandemic could lead governments throughout Europe to shut down their economies again has hit the confidence of investors, particularly after the recent stock rally. Germany, France, the U.K., and others are in the process of instituting measures such as limited lockdowns, bar closures and other systems intended to reduce the spread of infection. This is occurring while doubts are emerging over the speed at which vaccines will be approved. Despite the global push for a Covid-19 vaccine, with dozens in clinical trials and hopes for initial inoculations this year, WHO Chief Scientist Soumya Swaminathan reiterated Wednesday that mass shots were unlikely to be widely available in the near future. The dollar edged higher in early European trade Thursday on safe haven inflows as coronavirus cases continue to mount and the idea of pre-election stimulus in the U.S. is officially consigned to the trash.  The Dollar Index was up 0.1% at 93.483. USD/JPY was up 0.1% at 105.28. The risk-sensitive AUD/USD dropped 0.7% to a one-week low of 0.7110, weighed by Australia’s central bank chief hinting at a possible rate cut or bond buying.

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