December 11, 2020
Daily FX Market Roundup December 11, 2020
Currencies were driven lower on Friday on fading hopes for Brexit and US stimulus deals. For most of this year, investors believed that the UK would eventually cave and agree to an orderly exit out of the European Union. However with only a few weeks before their deadline, the final round of Brexit talks are failing quickly with both sides preparing contingencies. In the US, lawmakers are expected to pass a one week spending bill to fund the government but the House has indicated that anything beyond that would require agreement to a broader fiscal stimulus plan. Unfortunately very little progress has been made and Senate Republicans say they do not have majority support for the current bill. If agreements cannot be reached in the next week or two, we could see sharp year end losses in currencies and equities.
GBP/USD fails to break key resistance GBP/USD fails to break key resistance
Gary Christie December 11, 2020 9:47 PM
1.3535 area remains on the radar for a breakout: Chart Share:
The US Dollar was bullish against most of its major pairs on Friday with the exception of the JPY. On the US economic data front, the Producer Price Index Final Demand rose 0.1% on month in November (as expected), compared to +0.3% in October. Finally, the University of Michigan s Consumer Sentiment Index unexpectedly jumped to 81.4 on month in the December preliminary reading (76.0 expected), from 76.9 in the November final reading.
On Monday, Empire Manufacturing for December is expected to rise to 6.9 on month, from 6.3 in November. Finally, Industrial Production for November is expected to increase 0.3% on month, compared to +1