FX MARKET REPORT 04.12.2020

FX MARKET REPORT 04.12.2020

FX MARKET REPORT 04.12.2020

Daily Commentary
FX MARKET REPORT 04.12.2020
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FX MARKET REPORT 04.12.2020

GBP/USD bulls turn cautious amid the incoming Brexit-related headlines. Hopes for a last-minute Brexit deal, weaker USD helped limit the downside. Investors await Brexit updates, NFP report for a fresh directional impetus. GBP/USD seesaws in a nearly 25-pip trading range above 1.3445, currently teasing the intraday low of 1.3444 while heading into Friday’s London open. Although US dollar weakness propelled the quote to the yearly top the previous day, Brexit woes are back to haunt the Cable buyers. EUR/USD has reached 1.2145, the 78.6% retracement and this may provoke some consolidation, it is also the break up point longer term to 1.2622, the 200 month moving average, this remains our overall target, representing a 1.5% weekly gain, and well above the horizontal resistance of $1.2011 (Sept. 1 high). If the gains above 1.2011 are held through Friday’s close, a bullish breakout would be confirmed on the weekly chart. The dollar slipped lower in early European trade Friday, on course for a loss of nearly 2% for the week, as increased optimism that U.S. lawmakers will come together to agree a new coronavirus relief package boosts risk sentiment. The dollar index was down 0.1% at 90.638, just above the two-and-a-half year low of 90.504 seen on Thursday. USD/JPY rose 0.1% to 103.92, while the risk-sensitive AUD/USD edged 0.1% lower to 0.7431, not far off its highest level in more than two years.

GBP/USD bulls turn cautious amid the incoming Brexit-related headlines. Hopes for a last-minute Brexit deal, weaker USD helped limit the downside. Investors await Brexit updates, NFP report for a fresh directional impetus. GBP/USD seesaws in a nearly 25-pip trading range above 1.3445, currently teasing the intraday low of 1.3444 while heading into Friday’s London open.…

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