EURUSD: Buyers Zero In On 1.1891 Resistance

Major currencies ended the week higher against the US dollar. The largest increase against the US dollar was shown by the New Zealand dollar (+1.26%). Smaller gains were notched up by the Japanese yen (+0.70%), the British pound (+0.69%), the Australian dollar (+0.53%), the Canadian dollar (+0.21%), the euro (+0.18%) and Swiss franc (+0.01%).

As of Friday’s close, a basket of major currencies showed mixed dynamics. The kiwi, the aussie and cable closed up 0.20% or more, while the Swiss franc, yen, euro and Canadian were stuck in the red.

The single currency fell from 1.1891 to 1.1850 against the US dollar. No market-driving data came out, so the market reacted to Brexit and Covid-19 news. The pound strengthened on expectations that a Brexit agreement is expected to be clinched this week.

Furthermore, market sentiment was marred by news that US emergency lending program will be allowed to expire at year-end. The Treasury declined to extend five of the Fed’s nine emergency credit facilities. The central bank will have to return to the Treasury $455 bln worth of unused funds, which Congress will allocate for other purposes.

Today’s macro agenda (GMT+3)

17:45 US: Services PMI (November)

18:30 UK: parliamentary hearing on BoE monetary policy reports; speeches by Haldane, Saunders, and Tenreyro

21:00 US: Fed member Daly speech

22:00 US: Fed member Evans speech


Current outlook

All major currencies have been trading in positive territory during today’s Asian trading. The British pound (+0.27%) currently tops the leaderboard, ousting the kiwi, which had been pushing up currencies across the board earlier this morning on the back of robust Q3 retail sales, up 28% vs. -14.8% earlier and the 20% forecast.

Another positive factor for major currencies is vaccine news. The FDA hopes to authorize the Covid-19 vaccine of drugmaker Pfizer and its German partner BioNTech in mid-December, according to Dr. Monsef Slawi, Chief Scientific Advisor for Operation Warp Speed. In addition, the UK could give regulatory approval to Pfizer-BioNTech’s Covid-19 vaccine this week.

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Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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