FX MARKET REPORT 23.11.2020

FX MARKET REPORT 23.11.2020

FX MARKET REPORT 23.11.2020

Daily Commentary
Daily Commentary
FX MARKET REPORT 23.11.2020
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FX MARKET REPORT 23.11.2020

GBP/USD rose 0.4% to 1.3329, helped by the AstraZeneca vaccine news. Addiitionally, U.K. Chancellor of the Exchequer Rishi Sunak said Sunday that he is optimistic that a Brexit trade agreement with the European Union will be reached soon. Still, even if the UK-EU trade deal is reached, “the lack of risk premia priced into GBP suggests only a limited upside,” said analysts at ING, in a research note. However, with politics and the U.K.-EU relationship uncertainty taking a less prominent role next year, this should allow GBP to benefit from the weak USD dynamics, sending GBP/USD above 1.40 in 2021. The pound was also edging higher against the euro, testing the five-month high it notched earlier this month. The upside momentum in Cable could extend to the 1.3360 area in the next weeks according to the UoB Group. The upbeat manufacturing PM partly offset concerns about the economic damage caused by the second wave of coronavirus infections in the region. This, in turn, remained supportive of a bid tone surrounding the EUR/USD pair, which was last seen trading with modest daily gains near the 1.1870 region. The Dollar Index was 0.2% at 92.248, just above the month’s low of 92.129. USD/JPY fell 0.1% to 103.81, while the risk sensitive AUD/USD rose 0.2% to 0.7317.

GBP/USD rose 0.4% to 1.3329, helped by the AstraZeneca vaccine news. Addiitionally, U.K. Chancellor of the Exchequer Rishi Sunak said Sunday that he is optimistic that a Brexit trade agreement with the European Union will be reached soon. Still, even if the UK-EU trade deal is reached, “the lack of risk premia priced into GBP…

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