FX MARKET REPORT 07.12.2020

FX MARKET REPORT 07.12.2020

FX MARKET REPORT 07.12.2020

Daily Commentary
FX MARKET REPORT 07.12.2020
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FX MARKET REPORT 07.12.2020

GBP/USD witnessed some follow-through selling for the second consecutive session on Monday. Not so optimistic Brexit-related headlines took its toll on the sterling and exerted some pressure. Softer risk tone benefitted the safe-haven USD and contributed to the pair’s intraday selling bias. With less than four weeks left before the Brexit transition period ends on December 31, the not so optimistic developments continued weighing heavily on the British pound. In fact, the GBP/USD pair broke through the 1.3300 mark and tumbled to over two-week lows during the early European session. EUR/USD drops to 3-day lows near 1.2080 on Monday. The risk aversion mood supports the demand for the dollar. German Industrial Production expanded 3.2% MoM in October. The single currency adds to Friday’s corrective downside and drags EUR/USD to fresh lows in the sub-1.2100 area on Monday. The dollar pushed higher in early European trade Monday, rebounding from multi-year lows as Covid-19 cases continue to mount and lockdowns expand, weighing on the U.S. economic recovery. The dollar index was up 0.3% at 90.993, rebounding a touch having hit a 2 1/2-year low of 90.471 on Friday. USD/JPY was largely unchanged at 104.11, while the risk-sensitive AUD/USD was flat at 0.7420, not far off its highest level in more than two years.

GBP/USD witnessed some follow-through selling for the second consecutive session on Monday. Not so optimistic Brexit-related headlines took its toll on the sterling and exerted some pressure. Softer risk tone benefitted the safe-haven USD and contributed to the pair’s intraday selling bias. With less than four weeks left before the Brexit transition period ends on…

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