FX MARKET REPORT 11.11.2020

FX MARKET REPORT 11.11.2020

FX MARKET REPORT 11.11.2020

Daily Commentary
FX MARKET REPORT 11.11.2020
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FX MARKET REPORT 11.11.2020

GBP/USD recedes the upside momentum while declining from the multiday high of 1.3280 to 1.3263, up 0.12% intraday. The pair recently benefited from the mixed risk sentiment and increasing odds of a soft Brexit. Though, virus woes, an off in the US limit the quote’s short-term moves. Cable’s further upside is forecast to meet a relevant hurdle at 1.3380 ahead of 1.3420, noted FX Strategists at UOB Group. Commerzbank expects the cable to fail in the 1.3310-1.3422 band. EUR/USD is in stasis amid increased hopes for coronavirus vaccine and evidence of a renewed slowdown in the German economy. The European Central Bank President Lagarde’s speech, due at 13:00 GMT, may provide a clear directional bias to the common currency. The pair extends its 20-pips range play above 1.1800 into the European open, as markets digest the latest vaccine euphoria amid coronavirus escalation globally. The ECB must announce additional monetary policy easing in December to avoid the risk of deflation in the Eurozone, Oscar Arce, the Spanish central bank’s Chief Economist said in an interview in Madrid late Tuesday. With several Eurozone nations back in the economically-painful coronavirus lockdown restrictions, ECB’s President Lagarde has little room to sound hawkish. The German economy is already showing signs of weakness. The German ZEW index dropped from 56.1 to 39 in the month of November, reflecting concerns about a double-dip recession. The data marks the beginning of what should be a series of weaker economic reports poised to plague the currency. The dollar edged higher in early European trade Wednesday in thin volumes, as traders continued to digest the implications of Pfizer’s potential Covid-19 vaccine. The Dollar Index (DXY) was up just 0.04% at 92.775. USD/JPY rose 0.1% to 105.39, while the risk sensitive AUD/USD rose 0.2% to 0.7295. The New Zealand dollar recovered from an early dip to hit its strongest level in more than a year as traders scaled back bets that the central bank would move to negative interest rates.

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GBP/USD recedes the upside momentum while declining from the multiday high of 1.3280 to 1.3263, up 0.12% intraday. The pair recently benefited from the mixed risk sentiment and increasing odds of a soft Brexit. Though, virus woes, an off in the US limit the quote’s short-term moves. Cable’s further upside is forecast to meet a…

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