FX MARKET REPORT 18.11.2020

FX MARKET REPORT 18.11.2020

FX MARKET REPORT 18.11.2020

Daily Commentary
FX MARKET REPORT 18.11.2020
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FX MARKET REPORT 18.11.2020

GBP/USD remained well supported by the latest Brexit optimism. Slightly better UK consumer inflation figures remained supportive. GBP/USD keeps gains around 1.3265 on the data release. The UK Consumer Prices Index (CPI) 12-month rate came in at +0.7% in October when compared to +0.5% booked in September while beating expectations of a +0.6% print, the UK Office for National Statistics (ONS) reported on Wednesday. A promising development in late-stage COVID-19 vaccine trials dented the greenback’s relative safe-haven status. This, along with concerns about the economic fallout from new coronavirus restrictions in several US states kept the USD bulls on the defensive. EUR/USD has been shrugging off cautious words from central bankers and extending its gains. The pair is currently trading near 1.1868, representing marginal gains on the day, having put in a low of 1.1850 during the Asian session. Coronavirus headlines and speculation about the next stimulus boosts are eyed on Wednesday. A coronavirus vaccine is no game-changer for forecasts – the words of Christine Lagarde, President of the European Central Bank, poured some cold water on investor enthusiasm. The ECB already incorporated immunization from the virus in 2021 as part of its outlook and remains worried about the current spread of the disease. Jerome Powell, Chairman of the Federal Reserve, echoed her cautious words. Lagarde stated that additional stimulus is coming, while Powell only opened the door to a potential expansion. If the Fed proceeds with another boost, EUR/USD has room to rise. Final eurozone inflation figures for October will likely confirm the drop of 0.3% in the headline Consumer Price Index. US Building Permits and Housing Starts are eyed in the US on Wednesday. However, the focus is on the virus and central banks. The dollar edged lower in early European trade Wednesday, weighed by signs the surge in coronavirus vases is hitting the U.S. consumer while the country’s political scene remains divided. The dollar index was down 0.2% at 92.245. USD/JPY fell 0.3% to 103.91, while the risk sensitive AUD/USD rose 0.1% to 0.7304.

GBP/USD remained well supported by the latest Brexit optimism. Slightly better UK consumer inflation figures remained supportive. GBP/USD keeps gains around 1.3265 on the data release. The UK Consumer Prices Index (CPI) 12-month rate came in at +0.7% in October when compared to +0.5% booked in September while beating expectations of a +0.6% print, the…

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