Forex Today: Dollar remains strong, US coronavirus-related news may weigh

FXStreet Team FXStreet

Here is what you need to know on Thursday, November 12:

Volatility kept shrinking on Wednesday, with limited action across financial boards. The greenback strengthened unevenly, but major pairs remain within familiar levels, amid a holiday in the US and the absence of a fresh catalyst.

The EUR was the weakest, pressured by the persistent increase of coronavirus cases in Europe, and comments from ECB’s Lagarde, as she mentioned the risk poised to inflation´s recovery coming from exchange developments when speaking at an ECB Forum. The EUR/USD pair fell to 1.1745, recovering modestly ahead of the close.

The pandemic is also taking its toll on the US. The country keeps reporting record cases on a daily basis, well above 100K per day. New York has announced a 10 p.m. curfew on bars, restaurants and gyms, to contain the spread. COVID-19 hospitalizations in the country surpassed 60,000. Should the country take more restrictive measures, the dollar will likely suffer.

GBP/USD briefly traded above 1.33 amid a generally positive mood but plunged towards 1.32 on the back of Brexit headlines. Trade talks between the UK and the EU are set to continue next week, despite the previous speculation that a deal would need to be closed this week to get parliamentary ratification before December 31. Ireland’s Foreign Minister Simon Coveney said that if a deal is not got by next week, “we will have real problems."

The AUD/USD pair remained mute, as gold also failed to attract buyers. The bright metal trades in the $1,860.00 price zone. Crude oil prices advanced at the beginning of the day, but trimmed gains ahead of the close.

Wall Street closed mixed after a strong start to the day.

Regarding the US presidential election, the dispute continues, although things are getting rougher for President Donald Trump. According to the latest news, Joe Biden’s lead in Pennsylvania is greater than the margin needed to trigger a recount.

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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.

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