Forex Today: Pressure on the dollar

FXStreet Team FXStreet

Here is what you need to know Wednesday, December 18th:

UK PM Johnson announced plans to write into law that the UK will leave the EU in 2020 without allowing an extension of the transition period. The Sterling collapsed amid mounting fears of a hard-Brexit, with GBP/USD briefly piercing the 1.3100 figure before bouncing modestly.
The EUR/USD pair advanced to a fresh weekly high of 1.1174 but closed the day unchanged around 1.1150.
The market’s optimism faded amid Brexit concerns and the absence of clarity about phase one of the trade deal. China seems more reluctant to provide details.
Equities posted modest intraday gains, but Wall Street reached fresh all-time highs.
Crude oil extended its rally into the fourth trading day on Tuesday with the barrel of West Texas Intermediate rising to its highest level in three months. Market waiting for US stockpiles data.
Gold remained mute around $ 1,475.00 a troy ounce.
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EUR/USD remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold recedes slightly, trades below $5,100

Gold remains stuck in choppy trade on Thursday, deflating marginally just below the $5,100 mark per troy ounce as the US Dollar drifts without a clear trend. Softer US Treasury yields across the curve are offering some support, but with markets treading carefully ahead of Friday’s US CPI release, conviction remains limited and price action continues to look hesitant.