Forex Today: Dollar comes back to life on month-end flows

FXStreet Team FXStreet

Here is what you need to know on Tuesday, December 1:

The greenback fell at the beginning of the day but managed to close the day with gains against most major rivals. The dollar’s recovery was mostly due to profit-taking as the month came to an end, exacerbated by the poor performance of Wall Street.

EUR/USD peaked at 1.2020 while the AUD/USD pair reached 0.7406, both multi-month highs. The USD/CAD pair fell to 1.2923, its lowest since November 2018.

The GBP/USD pair, however, seesawed within familiar levels, amid the lack of progress in Brexit talks. This Monday, Irish Foreign Minister Simon Coveney warned that a trade deal between the UK and the EU would likely fail if there’s no agreement on fisheries, saying that is a more difficult issue than a level playing field. Meanwhile, the European Commission spokesperson said that whether there is a Brexit deal or not, people and businesses need to be prepared as things will change.

European stocks closed the day in the red but posted the best month in almost 35 years. Wall Street had similar behavior, losing ground daily basis, but with indexes posting their best-ever monthly close.

Another company has reported high levels of effectiveness in its coronavirus vaccine. Moderna announces its product is over 94% effective in preventing contagions. Moderna has also announced it will seek approval for emergency use in the US and Europe.

Gold prices remained under selling pressure, with spot ending the day around $1,780 a troy ounce after falling to a fresh multi-month low of 1,764.25

Crude oil prices were unchanged daily basis, as the OPEC+ meets to decide whether to extend its output cuts or not.

Cryptocurrencies Price Prediction: Bitcoin, Ethereum & Ripple – American Wrap 30 November

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EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

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Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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