FX MARKET REPORT 20.11.2020

FX MARKET REPORT 20.11.2020

FX MARKET REPORT 20.11.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 20.11.2020
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FX MARKET REPORT 20.11.2020

The UK retail sales came in at 1.2% over the month in October vs. 0% expected and 1.5% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.3% MoM vs. 0.1% expected and 1.6% previous. On an annualized basis, the UK retail sales jumped by 5.8% in October versus 4.2% expected and 4.7% prior while the core retail sales increased by 7.8% in the reported month versus 5.9% expectations and 6.4% previous. The GBP/USD pair held on to its modest intraday gains near the 1.3275-80 region and had a rather muted reaction to the latest UK macro data. It, however, remains to be seen if bulls can capitalize on the move or the GBP/USD pair struggles to move back above the 1.3300 mark as investors await Brexit-related updates. This makes it prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move, possibly towards mid-1.3300s. EUR/USD extends the consolidative fashion on Friday as the pair once again prolongs the rangebound trade at the end of the week and always below the 1.19 mark, which has become a solid obstacle for any serious bullish attempt in past sessions. “Investors continue to look past the pandemic and favour the ‘glass half-full’ vision, always on the back of rising hopes of an effective vaccine in the short-term horizon, which at the same time reignite the idea of a ‘V’-shaped recovery in the euro area and the rest of the world.” The dollar edged higher in early European trade Friday, in tight ranges as traders digest a potential rift between U.S. Treasury Secretary Steven Mnuchin and the Federal Reserve. The dollar index was up 0.1% at 92.325, just above the month’s low of 92.129. The dollar has lost ground against riskier currencies for over a week as drug manufacturers continue to report progress towards a Covid-19 vaccine. USD/JPY rose 0.1% to 103.86, while the risk sensitive AUD/USD fell 0.1% to 0.7286.

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The UK retail sales came in at 1.2% over the month in October vs. 0% expected and 1.5% previous. The core retail sales, stripping the auto motor fuel sales, stood at 1.3% MoM vs. 0.1% expected and 1.6% previous. On an annualized basis, the UK retail sales jumped by 5.8% in October versus 4.2% expected…

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