EUR/USD continues to fluctuate in a narrow range at around 1.0400. The pair could reach 1.05-1.06 next week, according to economists at ING.The big US Dollar story is dominating
“Despite the looming eurozone recession, ECB hawks such as Isabel Schnabel suggest it may be premature to scale back rate increases. Currently, the market prices 61 bps of hikes on 15 December (we expect 50 bps). Clearly, the 50 bps versus 75 bps debate will continue to run.”
“For EUR/USD, it still looks like the big Dollar story is dominating. We cannot rule out a further correction into the 1.05-1.06 region but would see these as the best levels before year-end. These levels could be seen next week should Fed speakers or November US jobs data prove the catalyst.”
EUR/USD drops below 1.0400 as US Dollar rebounds
EUR/USD came under modest bearish pressure and dropped below 1.0400 during the European trading hours on Friday. The negative shift witnessed in risk mood amid rising coronavirus cases in China seems to be helping the US Dollar find demand despite thin holiday trading.
EUR/USD News
GBP/USD loses traction, trades below 1.2100
GBP/USD has lost its traction and declined below 1.2100 on Friday. The souring market mood provides a boost to the US Dollar as markets grow increasingly worried about China introducing additional coronavirus restrictions. Stock and bond markets will close early.
GBPUSD News
Gold retreats to $1,750 area as US yields edge higher
Gold retreats to $1,750 area as US yields edge higher
Gold price turned south and dropped to the $1,750 area. The benchmark 10-year US Treasury bond yield is up more than 1% on the day slightly above 3.7%, forcing XAU/USD to stay on the back foot on Black Friday.
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