Forex Today: Brexit redux and trade fears continue to hurt risk appetite, favor dollar


Here is what you need to know on Wednesday, December 18:

The US dollar has emerged the outright winner across its main peers so far this Wednesday, as revived no-deal Brexit fears continued to hurt the sterling while persistent concerns over the lack of details in the US-China trade deal weighed on the higher-yielding Antipodeans.

Meanwhile, the sentiment around safe-havens such as the Japanese yen and gold remained underpinned amid cautious market mood, as the Asian equities were a mixed mag and Treasury yields reported minor losses. S&P 500 futures flipped to the negative territory heading into Europe.

Across the G10 fx space, GBP/USD was the main laggard and breached the 1.31 handle after seeing the worst daily decline in over a year on Tuesday. EUR/USD failed repeated attempts to sustain above the 200-day SMA and kept its range trade intact above 1.1100.

USD/JPY eased slightly below 109.50, in light of a potential Japan-Russia geopolitical conflict. Russia seized 5 Japanese fishing vessels on Dec, 17th. Meanwhile, the Antipodeans ignored China’s intent to ease monetary policy conditions, as dovish RBA expectations pressured the Aussie. The Kiwi saw some profit-taking slide ahead of New Zealand’s Q3 GDP report.

Gold hovered below $ 1480, Crude oil corrected from three-month highs following an unexpected climb in the weekly US Crude Stocks.

Cryptocurrencies paused the sell-off, with Bitcoin attempting a tepid bounce on $ 6,600.

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.

Feed news

FXStreet Trading Signals now available!

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


Latest Forex News

Editors’ Picks

EUR/USD under pressure below 1.1100 as US dollar rebounds

EUR/USD remains under pressure below 1.1100 amid the broad US dollar rebound. US President Trump's decision to extend lockdown to tackle the coronavirus outbreak intensified risks of a deeper economic slowdown and underpinned the haven demand for the greenback. 

EUR/USD News

GBP/USD: Rebound remains capped by 1.2400 amid firmer US dollar

GBP/USD is off the lows but the upside attempts remain capped by 1.2400 amid a broadly stronger US dollar. The dire warnings on the UK’s economic growth amid expectations of a longer lockdown weigh on the spot. 

GBP/USD News

Cryptocurrencies: Bulls try to take the reins again, XRP in front

The XRP/USD pair is best positioned to escape the bearish trap that has gripped the market in recent weeks. Ether needs to do better than BTC, as it has happened over the weekend. Market sentiment is at a negative extreme, an invitation to a short-term upward shift.

Read more

Gold remains confined in a narrow range around $1620 level

Gold extended its sideways consolidative price action and remained confined in a four-day-old trading range through the early European session on Monday. A goodish pickup in the USD demand seemed to be a key factor capping gains.

Gold News

WTI: Bears dominate below 13-day-old resistance trendline

While following a short-term falling trend line resistance, WTI drops to $22.000 amid the early Monday. In doing so, the energy benchmark remains near multi-year low amid the bearish MACD. $20.00 becomes the key for sellers ahead of targeting the three-week-old descending trend line.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures