Market Review - 12/08/2020  23:49GMT  

Dollar falls as stimulus talks reach an impasse

The greenback erased intra-day gains made in Asia and began its intra-day descent in European morning and ended Wednesday lower against majority of its peers, except for the safe-haven Japanese yen due to standstill in negotiations between the Democrats and Republicans over coronavirus relief package.  
Reuters reported U.S. House Speaker Nancy Pelosi on Wednesday said Democrats and the Trump administration remained far apart regarding any agreement over further economic aid amid the novel coronavirus pandemic, saying Republicans also seemed divided amongst themselves over relief efforts.  
On the data front, Reuters reported the Labor Department said on Wednesday its consumer price index rose 0.6% last month after rebounding 0.6% in June. In the 12 months through July, the CPI accelerated 1.0% after climbing 0.6% in June. Economists polled by Reuters had forecast the CPI rising 0.3% in July and gaining 0.8% year-on-year.  
Versus the Japanese yen, dollar found renewed buying at 106.45 in Australia and later rose to a fresh 2-week high at 107.01 at New York open on rise in U.S. Treasury yields before retreating to 106.69 on profit-taking. However, the pair then rebounded to 106.97 and then moved sideways.  
Although the single currency continued its recent losing streak and fell to a 1-week low of 1.1712 in Asia, renewed buying interest emerged and price later rallied to session highs at 1.1816 in New York morning on usd's weakness before weakening to 1.1783 on profit-taking.  
The British pound went through a roller-coaster ride. Cable initially fell from 1.3061 in Australia to 1.3017 in Asia before rising in tandem with euro to session highs of 1.3067 but only to drop to +a 1-week low at 1.3006+ at New York open on cross-selling in sterling, especially versus the single currency. The pair then rebounded again to 1.3060 and then swung broadly sideways.  
Reuters reported Britain's economy shrank by a record 20.4% between April and June, when the coronavirus lockdown was tightest, the largest contraction reported by any major economy so far, official figures showed on Wednesday.  
Data to be released on Thursday :  
New Zealand food price index, UK RICS housing survey, Japan corporate goods price, machine tool orders, Australia employment change, unemployment rate, France ILO unemployment rate, Germany CPI, HICP, wholesale price index, and U.S. import prices, export prices, initial jobless claims, continued jobless claims.  

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidating at lows after mixed US data, Powell

EUR/USD trades near a fresh two-month low of 1.1671 after mixed US Markit PMIs, which anyway indicated economic expansion. Fed speakers highlighted the need for more fiscal stimulus.


GBP/USD holds on to daily gains amid Brexit’s optimism

The GBP/USD pair consolidates around 1.2750, underpinned by EU Chief Brexit Negotiator Barnier's optimism on a post-Brexit trade deal. UK Business activity remains in expansion territory according to Markit.


Gold: Elliott Wave downside targets point to the $1767 area

The commodities complex is taking another hit on Wednesday after a tough start to the week. The recent persistent greenback strength has been a thorn in the side of the precious metal since the dollar consolidation began.

Gold News

In search of the Bitcoin anchorage

When the gates of heaven seemed to open, with the moon clearer than ever, selling came back to the crypto board. After the long winter of 2018/2019, hope was already exhausted, and the current setback is finishing with its remains. 

Read more

WTI flirts with the 200-day SMA below $40.00/bbl ahead of EIA

Prices of the WTI are alternating gains with losses below the key $40.00 mark per barrel on Wednesday.

Oil News

Forex Majors