Review of the dollar, euro, pound, yen, aussie and gold prices for December 29, 2020


EUR / USD

The European currency is showing active growth against the US dollar in trading in today’s Asian session, developing the “bullish” momentum formed at the end of last week, when investors left for the Christmas holidays. Today, the activity on the market remains rather low, and the main driver for the further rise in the instrument is still the weak dollar. Recall that last weekend, Donald Trump signed a draft budget for the 2021 fiscal year, and also approved a new economic aid package, which, among other things, provides for direct payments of $ 600 per person. Moderate support for the euro is also provided by the positive outcome of trade negotiations between the UK and the EU, which removed a significant part of the risks of complications in economic relations between the regions in the new year.

GBP / USD

The British pound is trading with an upward trend against the US currency, preparing to test the 1.3500 level for a breakdown upward. During today’s Asian session, the pound is quite actively recouping the losses incurred the day before, but there are no fundamental reasons for such a confident strengthening. Initial excitement about the long-awaited trade agreement between London and Brussels is gradually fading away, giving way to cold analysis and highly controversial forecasts. British Prime Minister Boris Johnson, commenting on the approval of the transaction by the parties, said that London, unfortunately, did not receive strong guarantees for the development of the financial services sector in the eurozone. However, for a period of time, the UK and EU will be protected from additional tariffs and quotas, which should favorably affect the pace of global economic recovery next year.

AUD / USD

The Aussie has seen moderate gains against its US counterpart in Asian trading today, recovering from a bearish start to the week. The pair is gaining about 0.21% and is close to testing the 0.7600 mark for a breakdown upwards. The market is still characterized by an extremely low level of volatility, which leads to the emergence of multidirectional dynamics, and one of the main drivers of the instrument’s growth is rather weak positions in the US currency. The few traders still in the market are selling the US dollar after Donald Trump approved a new bailout package that Congress passed ahead of Christmas. A small block of US macroeconomic statistics will be in the spotlight of investors on Tuesday. Among other things, the retail sales index from Redbook for the week of December 25 is expected to be published, as well as the house price index from S & P / CaseShiller for October.

USD / JPY

The US dollar shows a slight decline against the Japanese yen in trading this morning session, retreating from local highs since December 21, updated the day before. Pressure on the position of the American currency is still exerted by the fact that Donald Trump has signed a new package of measures to help the US economy, as well as the difficult epidemiological situation in many states. In turn, the yen has a mixed reaction to the publication of ambiguous macroeconomic statistics from Japan. So, on Monday, data from Japan indicated a decline in industrial production by 3.4% y / y in November. However, analysts’ forecasts assumed a much more significant decline in the indicator by 10% y / y. On a monthly basis, the rate of industrial production growth in the country fell from 4% m / m to 0% m / m.

XAU / USD

Gold prices are trading upward again in today’s Asian session, trying to recover from Monday’s bearish results. Yesterday, the instrument showed positive dynamics, however, it closed in the red zone, unable to resist in the current “thin” market. The decline in the value of gold is also facilitated by the approval of the trade deal between the UK and the EU, which was the result of a whole year of tense negotiations. In addition, optimism in the market is felt after Donald Trump signed the draft budget for 2021 and a new package of economic support measures, which, in particular, provides for direct payments to American citizens in connection with the coronavirus.

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