FX MARKET REPORT 09.12.2020

FX MARKET REPORT 09.12.2020

FX MARKET REPORT 09.12.2020

Daily Commentary
FX MARKET REPORT 09.12.2020
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FX MARKET REPORT 09.12.2020

The GBP/USD pair maintained its bid tone through the early European session and was last seen hovering just below daily tops, around the 1.3380 region. The pair managed to regain some positive traction during the first half of the trading action on Wednesday and for now, has snapped three consecutive days of the losing streak. The uptick was supported by the emergence of some fresh selling around the US dollar and seemed rather unaffected by persistent Brexit uncertainties. Positive news on COVID-19 vaccine approvals and efforts to launch more fiscal stimulus to support the US economy boosted investors’ confidence. This was evident from a positive trading sentiment across the global equity markets, which snapped demand for the traditional safe-haven greenback and remained supportive of the intraday positive move. This makes it prudent to wait for some strong follow-through buying before confirming that the GBP/USD pair has formed a strong base ahead of the 1.3200 mark. EUR/USD has completed a much-needed correction and may be ready to rocket again after moving too high. The world’s most popular currency pair is ready to attack 1.22 as stimulus, Brexit and technicals look promising. The latest move higher is likely the result of dollar weakness fuelled by the risk-on action in the Asian equities and the futures tied to the S&P 500. The dollar weakened in early European trade Wednesday, with growing confidence surrounding U.S. fiscal stimulus and the vaccine rollout prompting traders to seek out riskier currencies. The dollar index was down 0.2% at 90.812, still only slightly above the recent 2 1/2-year low of 90.471. USD/JPY rose 0.1% to 104.23, while the risk-sensitive AUD/USD was up 0.5% at 0.7445.

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The GBP/USD pair maintained its bid tone through the early European session and was last seen hovering just below daily tops, around the 1.3380 region. The pair managed to regain some positive traction during the first half of the trading action on Wednesday and for now, has snapped three consecutive days of the losing streak.…

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