Forex Today: Fresh Brexit risks pound GBP, Aussie hit by RBA; UK jobs next of note

Here is what you need to know on Tuesday, December 17:

Fresh Brexit fears: UK press reported overnight that PM Johnson will set a new deadline to prevent any extension of the Brexit transition period beyond 2020. Hard Brexit fears resurfaced thereafter and pounded the Sterling. GBP/USD quickly eroded nearly 100-pips and fell sharply below 1.3300. Heading into Europe, Cable reverses half the slide and looks to regain 1.3300. Meanwhile, Johnson is considering a big overhaul of the House of Lords, FT reported. Focus on UK Employment data and BOE Governor Carney’s speech ahead.

Trade deal skepticism: US-China Phase One trade deal optimism faded, despite assurances from the White House that deal with China is done. The skepticism is mainly in light of Beijing's reticence in acknowledging specifics laid out by the US.

The US dollar was broadly bid, helped by the slump in GBP/USD. EUR/USD remained trapped below the 200-DMA at 1.1153. Meanwhile. USD/JPY traded modestly flat above 109.50. The Aussie was pressured to near 0.6860 region on dovish RBA’s December meeting’s minutes while the Kiwi benefited from a lift in New Zealand’s Business Confidence.

Among related markets, Asian stocks tracked the Wall Street rally while Treasury yields dropped over 1%. Gold kept its recent range around $ 1475 while both crude benchmarks traded little changed near three-month tops ahead of API weekly Crude Stocks data.

Cryptocurrencies consolidated the overnight slump, with Bitcoin licking its wounds sub-$ 6,900.

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

Latest Forex News

Editors’ Picks

EUR/USD battles with 1.0800, lower lows still likely

Another batch of dismal German data alongside looming risk-off sent EUR/USD to a fresh multi-year low of 1.0784. Recovery unlikely in the current scenario.


AUD/USD nears 0.6661, an over one-decade low

Dovish RBA Minutes and coronavirus concerns of economic growth weighed on the Aussie. Westpac Leading Index coming up next.


Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info