Forex Today: Treasury-Fed feud confuses markets, Brexit and coronavirus headlines eyed
|Here is what you need to know on Friday, November 20:
The US dollar is marginally lower amid a clash between the US Treasury and the Federal Reserve over stimulus funds. Coronavirus fears and vaccine news are moving markets as well. Brexit developments are eyed.
The safe-haven dollar has pared some of its gains triggered by a rare public spat between America's top economic institutions. Treasury Secretary Steven Mnuchin demand $580 billion in unused funds to be returned from the Federal Reserve. The bank's response was that the money is used as an emergency lending facility. It is unclear what the Treasury wants to do with the funds, but the out-in-the-open fight weighed on markets.
Raphael Bostic, President of the Atlanta branch of the Federal Reserve, pushed back against the Treasury. Robert Kaplan, his colleague from the Dallas Fed, speaks later in the day. Speculation about the Fed's next moves is also rife.
Coronavirus: The US hit a new daily high of 185,000 infections on Thursday, with hospitalizations and mortalities also hitting peak levels. Cases remain elevated in Germany and are edging lower in France.
Vaccine: Pfitzer and BioNTech are set to apply for emergency authorization for their immunization candidate as early as Friday. The EU secured additional vaccines from both Pfizer and CureVac.
Brexit: Contradicting headlines are rocking the pound. France and Belgium have reportedly asked the EU to step up preparations for a no-deal Brexit. On the other hand, others expect a deal to come to fruition. Face-to-face talks have been suspended after one team member tested positive for coronavirus. Brussels' chief negotiator Michel Barnier is set to brief EU ambassadors.
UK Retail Sales beat estimates with an increase of 1.2% in October, showing the resilience of the British consumer ahead of the second nationwide lockdown.
US politics: President-elect Joe Biden remains the winner in Georgia after the state completed a manual recount. The Peach State and additional battelground ones are set to certify the results. President Donald Trump summoned Michigan Republicans to the White House to try to influence the results. So far, his legal attempts have failed.
More American Politics and the Pandemic: What are the markets thinking?
USD/CAD is trading below 1.31 amid modestly rising oil prices and ahead of Canada's Retail Sales report. Minor increases are on the cards for September.
Bitcoin has recaptured the $18,000 level after a short consolidation period. Ethereum has been edging up toward $500.
More When the market shivers, the Fed delivers? Where next for markets
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.