EUR / USD
The European currency is showing moderate gains against the US dollar during today’s Asian session, trying to recover from mixed trading last week. The euro is testing the 1.2200 upside breakout level, supported by continued moderate optimism about the UK-EU agreement reached last Friday. At the same time, trading continues to be characterized by extremely low volatility caused by the Christmas and New Year holidays. In addition to the coronavirus, events in the United States continue to be the main driver for the instrument. Investors are disappointed again by delays in approving a new package of measures to support the US economy. However, according to the latest information in the media, Trump nevertheless signed a package of measures, as well as the US budget for 2021.
GBP / USD
The British pound is trading marginally ahead of the US dollar in trading this morning, close to previous record highs revised on December 17th. The pound is supported by the fact of the conclusion of a trade agreement between the UK and the EU as part of the transitional period under Brexit. Last weekend, the European Commission published on its official website the final text of the agreement of 1246 pages, noting that it deliberately postponed its publication against the backdrop of the Christmas holidays. It seems that the agreement really turned out to be quite balanced and equally takes into account the requests of each of the parties. Now the 27 countries that make up the EU have to approve this bill and unanimously vote for it in the Council of the European Union. The final ratification of the agreement is expected by the end of February 2021 (until this period, the deal will work on a temporary basis). Meanwhile, British investors, who are still in the market, are alarmed by a sharp rise in the incidence of coronavirus in the UK, which officials say is due to the identification of a new strain of the disease in the southeast of the country.
NZD / USD
The New Zealand dollar is showing moderate gains against the US currency in trading this morning session, again testing the 0.7120 mark for a breakout. Amid extremely low volatility in the market driven by the Christmas and New Year holidays, the instrument is moderately supported by the continued optimism about coronavirus vaccines and the conclusion of a trade agreement between the UK and the EU. In addition, the US currency is declining again in response to difficulties in aligning the US budget for 2021 and delays in approving a new fiscal stimulus package. However, according to the latest publications in the media, Donald Trump nevertheless signed both financial documents, although a few days ago he sharply criticized the proposed package of measures, demanding an increase in the payment in connection with the coronavirus from $ 600 to $ 2,000 per person. Recall that last week, the US Congress approved a package of measures, which implies the allocation of $ 900 billion for direct assistance to the population and business.
USD / JPY
The US dollar is trading mixed against the Japanese yen, hovering around 103.50. Trading activity in the market remains low due to the Christmas holidays. In turn, the macroeconomic statistics, released in large volumes in Japan, provide moderate support to the yen. Thus, Friday’s data pleased investors with a sharp drop in the unemployment rate in the country in November from 3.1% to 2.9%. The ratio of the number of vacancies to applicants rose in November from 1.04 to 1.06 with a neutral forecast. It should be noted, however, that trade activity within the country continued to decline. Retail sales in Japan dropped significantly in November from + 11.9% y / y to + 0.7% y / y, which also turned out to be worse than analysts’ forecasts at + 1.7% y / y.
XAU / USD
Gold prices are showing steady growth, again approaching the 1900.00 mark. The rise in quotes for the precious metal is partly due to the decline in the dollar in response to the conclusion of a trade agreement between the UK and the EU during the transition period after Brexit. As expected, the parties managed to strike a deal last week, and last weekend the European Commission published the final text of the agreement, 1246 pages. Now the agreement is to be ratified by the Council of the European Union, but investors are almost sure that difficulties in this process should not arise. Additional support for gold is provided by the signing of a new stimulus package for the American economy by US President Donald Trump.
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