Sterling also reaped the benefit of heightened vaccine optimism.
Sterling also reaped the benefit of heightened vaccine optimism given the viral problems that have forced the UK into lockdown ‘lite’, but also some technical factors lifting Cable above 1.3300 at one stage and pushed Eur/Gbp down below 0.8900, though Pound gains were eroded on the ongoing Brexit stalemate as negotiators remain poles apart on the key elements of a post-transition trade relationship even though some compromise has reportedly been made in other areas. To sum things up from an EU perspective, prospects were looking brighter 2 weeks ago, but now only time is progressing and a deal seems no closer, while PM Johnson’s spokesperson underlined the familiar differences as fishing and the level playing field, adding that talks will stop for the weekend and resume in Brussels next week. However, the ‘resignation’ of chief advisor Cummings and hard Brexiteer could be telling according to some.
More volatility for the Dollar, but ultimately further depreciation between 93.210-92.129 parameters in DXY terms following a midweek revival that petered out bang in line with a Fib retracement level to leave the index hovering just below 93.000 and well down from early November highs (94.308 last Wednesday coincidentally). The ongoing decline comes amidst what appears to be the final throes of a hotly contested US Presidential Election and general if not universal recognition that Democrat challenger Biden has prevailed over Republican Trump, assuming no dramatic turnaround via legal challenges or vote recounts. However, the major bearish factors for the Buck stemmed from COVID developments and news that a vaccine produced by Pfizer in conjunction with BioNTech achieved a 90% success rate in trials, sparking risk-on and reflation trades before some re-evaluation of the situation due to the ongoing/accelerating pandemic resurgence. On that note, Fed policy guidance remains dovish in line with the global Central Bank trend, bar a select few exceptions, and the prospect of more stimulus before year end is ‘live’ in contrast to the uncertain outlook regarding the next tranche of fiscal support (size and timing).
More volatility for the Dollar, but ultimately further depreciation between 93.210-92.129 parameters in DXY terms following a midweek revival that petered out bang in line with a Fib retracement level to leave the index hovering just below 93.000 and well down from early November highs (94.308 last Wednesday coincidentally). The ongoing decline comes amidst what appears to be the final throes of a hotly contested US Presidential Election and general if not universal recognition that Democrat challenger Biden has prevailed over Republican Trump, assuming no dramatic turnaround via legal challenges or vote recounts. However, the major bearish factors for the Buck stemmed from COVID developments and news that a vaccine produced by Pfizer in conjunction with BioNTech achieved a 90% success rate in trials, sparking risk-on and reflation trades before some re-evaluation of the situation due to the ongoing/accelerating pandemic resurgence. On that note, Fed policy guidance remains dovish in line with the global Central Bank trend, bar a select few exceptions, and the prospect of more stimulus before year end is ‘live’ in contrast to the uncertain outlook regarding the next tranche of fiscal support (size and timing).
