FX MARKET REPORT 10.12.2020

FX MARKET REPORT 10.12.2020

FX MARKET REPORT 10.12.2020

Daily Commentary
FX MARKET REPORT 10.12.2020
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FX MARKET REPORT 10.12.2020

GBP/USD is on the back foot after the Brussels’ Brexit dinner failed to yield a breakthrough. Ongoing talks, now set to extend through Sunday, overshadow US fiscal stimulus and virus developments. Failing to reach a deal three weeks before the transition expires is an adverse development for the pound. Contingency plans for a no-deal exit are likely to grab the headlines, further weighing on sentiment. The fact that investors will be unable to react to a Sunday statement may cause some to take bets off the table. Fear of another deadlock could prompt a run against the pound. Republicans and Democrats seem to coalesce around the framework – $900 billion – but not about the details. Nevertheless, there seems to be more optimism in Washington than in Brussels. GBP/USD extends losses towards 1.3300. The spot was last seen trading at 1.3316, down 0.60% on the day. EUR/USD Price Analysis: Bounces-off 200-HMA to regain 1.2100 ahead of ECB. The dollar edged lower in early European trade Thursday, with traders keeping a wary eye on the ongoing negotiations over Brexit trade in Europe and a Covid-19 relief package in the U.S., ahead of key central bank meetings. The dollar index was down 0.1% at 91.050, only slightly above the recent 2 1/2-year low of 90.471. USD/JPY rose 0.3% to 104.50, while the risk-sensitive AUD/USD was up 0.2% at 0.7461.

GBP/USD is on the back foot after the Brussels’ Brexit dinner failed to yield a breakthrough. Ongoing talks, now set to extend through Sunday, overshadow US fiscal stimulus and virus developments. Failing to reach a deal three weeks before the transition expires is an adverse development for the pound. Contingency plans for a no-deal exit…

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