The US dollar rose against major currency peers as investors reacted to the rising Covid cases and measures taken by some governments. In Europe, France and Germany unveiled new measures that will see some businesses asked to close through December. The new partial lockdowns will also limit the number of people in public gatherings. In the US, some cities such as New York have also limited movement as numbers rise. The country confirmed more than 70,000 new cases yesterday. 

The dollar also reacted to the first reading of Q3 GDP data. The preliminary numbers showed that the economy bounced back by 33.1% in the third quarter. This increase was because of an uptick in exports and consumer spending. Further, data showed that more than 751k people filed for initial jobless claims last week. That was the lowest reading since March, when the numbers rose to more than 20 million. It was also lower than last week’s reading of 787k. 

The euro declined against the US dollar as traders reacted to the interest rate decision by the European Central Bank (ECB). The Christine Lagarde-led bank decided to leave interest rates unchanged at -0.5%. It also left its target ceiling for quantitative easing purchases at €1.35 trillion. All this was in line with what analysts were expecting. In the statement, Lagarde expressed concerns about the new wave of the virus that is sweeping Europe and called for governments to provide fiscal support. Earlier on, data by the European Commission showed that the business and consumer survey was unchanged at 90.5 in October. Consumer confidence remained at -15.5. 

The Japanese yen gained against the US dollar after the Bank of Japan delivered its interest rate decision. The bank decided to leave rates unchanged at -0.10%, in line with analysts’ estimates. The bank also left its quantitative easing and yield curve control measures intact. Most importantly, the committee also decided to lower their full year economic and inflation outlook. They also pledged to continue supporting the economy, including by lowering rates and by implementing more asset purchases. Earlier on, data from the country showed that retail sales fell by 8.7% in September after falling by 1.9% in August.


The GBP/JPY pair dropped to a low of 135.00, which was the lowest it has been since September 28. On the four-hour chart, we see that the pair has been in a downward trend after it reached a high of 137.80 on October 12. The pair has moved below the 25-day and 15-day exponential moving averages. It has also moved below the neckline of the head and shoulders pattern at 135.33. The signal and main line of the MACD are below the neutral line. Therefore, the pair is likely to continue falling as bears aim for the next support at 134.50.



The DAX index dropped to a low of €11,530, which is the lowest it has been since June 1. On the daily chart, the index is in its fourth straight day in the red. It is also below the short and medium-term moving averages and below the Parabolic SAR dots. The signal and main lines of the MACD have also moved below the neutral line. Therefore, in the near term, the index is likely to continue falling as bears aim for the next support at €11,000.



The EUR/USD pair declined after the ECB interest rate decision. It moved to a low of 1.1701, which was the lowest it has been since October 2019. On the hourly chart, the price is below the short and medium-term moving averages while the Relative Strength Index (RSI) has moved below the oversold level of 30. It is also along the lower line of the Bollinger bands. The pair may continue falling as bears aim for the next support at 1.1690.


General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Analysis feed

FXStreet Trading Signals now available!

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

Latest Analysis

Latest Forex Analysis

Editors’ Picks

USD/JPY ignores downbeat Tokyo CPI, trades mixed above 104.00

USD/JPY traders look for strong signals to break the chain of three-day declines. Tokyo CPI slipped below -0.6% forecast, core CPI matched -0.7% expected in November. Risks struggle amid US off, mixed news on vaccine, US-China front. A light calendar can extend the sideways moves.


AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals

AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though. Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.


Gold: Bears noting old support for a discount

The price of gold has broken into bearish territory below a 38.2% Fibonacci retracement. In the recent good news in markets, the price of the yellow metal has come under renewed pressure. Bears will seek a discount on a pullback to retest old support, expected to turn resistance. 

Gold news

WTI regains $45.00 even as choppy session limits the moves

WTI fades pullback moves from the highest in nine months. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors