Forex Today: Definitions’ time has arrived

FXStreet Team FXStreet

Here is what you need to know on Monday, December 21:

The financial markets keep gyrating around Brexit negotiations and US funding talks. The latter seems to be in better shape than the first one, although definitions on both are expected this week.

Regarding US stimulus, US lawmakers announced on Saturday they reached a compromise, paving the way for a $900 billion coronavirus relief package and government funding. A sticky point is a dispute over Fed’s lending facilities, as Republicans are against letting the central bank interfere in business. Additional headlines on the issue may come ahead of the weekly opening.

The greenback corrected extreme oversold conditions on Friday but resumed its decline ahead of the weekly close. EUR/USD finished the week around 1.2250, near its year’s high at 1.2272.

On the Brexit front, trade talks are still stuck. according to weekend headlines. Differences remain not only around fisheries but also on the level playing field.

On Saturday, UK Prime Minister Boris Johnson moved London and areas of Southeast England into tier-four level of restrictions, amid a new variant of the coronavirus, which seems to be much more contagious. Johnson said that there’s no reason to believe the vaccine will be any less effective against it. Still, discouraging news may push sterling lower at the weekly opening.

Gold had spent the week mute just below the $1,900 level. Could get a boost and gap higher once the US announces financial decisions.

Bitcoin price at $100,000 is overly conservative, says on-chain analyst Willy Woo

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD pops to daily highs near 1.1430

EUR/USD starts the week on a positive note, climbing to as high as the 1.1430 zone, or daily tops, on Monday. The pair’s recovery comes in response to the broad-based US Dollar weakness, while investors continue to monitor developments from the Middle East ahead of the beginning of the ECB's annual forum.

Gold remains supported by $4,000

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.