Forex Today: EUR/USD tops 1.12, AUD/USD nears 0.70, as end-of-year dollar pressure set to extend

Yohay Elam FXStreet

Here is what you need to know on Monday, December 30:

The US dollar remains on the back foot amid end-of-year adjustments and speculation that the greenback may have a down year in 2020. Easing trade tensions and signs of growth elsewhere send investors away from the US.

EUR/USD has is trading above 1.12, the highest levels since August, while AUD/USD is near 0.70. Gold is trading above $1,500 while USD/JPY is holding above 109.

GBP/USD is also extending its recovery and trading above 1.31 as investors gear up for another turbulent year in post-Brexit trade negotiations.

Oil is on the rise as well, after reports about a US strike against targets in Syria and Iraq over the weekend. Optimism about global growth also keeps the black gold bid.

The penultimate day of the decade's calendar is light, with US Chicago Purchasing Managers' Index and Pending Home Sales having the potential to move markets.

Cryptocurrencies are consolidating their weekend gains, with Bitcoin trading around $7,300.

EUR/USD in 2020: Lean times soon to turn into flush times for euro dollar
GBP/USD in 2020: Pound may continue to fall on hard Brexit deadline
USD/JPY in 2020: A journey from trade fears to high-stakes election

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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 picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold bears flirt with $4,000 as Iran tensions and Fed hike bets support USD

Gold remains under some selling pressure for the second straight day on Tuesday, with bears awaiting a sustained break below $4,000 before positioning for deeper losses. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and keeps the bullion within striking distance of the YTD low, touched last week.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

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.