Forex Today: Risk sentiment sees markets drifting mildly higher in the pre-Christmas wind-down

In forex today, risk-based pairs drifted quietly higher, though overall markets remain tepid with pre-holiday volumes keeping action constrained near familiar levels. 

Fears of a global growth slowdown and US-China trade tensions remain the key topics of discussion for market participants, and the US Dollar finds itself near the bottom of the barrel as rudderless US politics sees broader market sentiment remaining tumultuous beneath the surface. 

The US Federal Reserve has drawn US President Donald Trump's ire, as Trump's own pick for the Federal Reserve chair continues to lift interest rates despite duplicitous tweets from the president demanding that the Fed stop raising rates too fast, to the point that Trump has been delivering rhetoric suggesting that he wants to find a way to fire the head of the Federal Reserve, leaving markets with a larrge questions mark and one foot squarely in safe-haven assets. Meanwhile, US Treasury Secretary Steven Mnuchin alerted market participants to the fact that he held high-level meetings with the heads of the US' six largest banks, reassuring investors that there are no liquidity problems in the US markets, leaving traders concerned that there may actually be problems where previously they thought there were none as Mnuchin insists on addressing fears that nobody expressed.

EUR/USD seeking 1.4000 despite overly-cautious markets

The Euro is lifting into 1.1390 after opening Monday near 1.1370, and despite overall market tensions, risk appetite is leaning into the upside as the US Dollar takes a step lower on political frailties back home. European political turmoil is far from over in their own right, but EUR investors are seeing slim gains heading into the Christmas holiday shutdown.

GBP/USD knocking on resistance-heavy door just below 1.2700

Brexit wear and tear that has seen the Sterling hobbled for much of 2018 have been temporarily put on hold, but January looms dark and large ahead, with no-confidence votes, parliamentary withdrawal proposal votes, and a bleeding clock on the final Brexti date at the end of March 2019 all promising to keep UK markets under firm pressure. For now though, holiday markets see paper-thin volumes lifting the Cable above 1.2650 as the US Dollar withers across the board.

Key notes from the Asia session

China to remove iron export tariff from January 1st - China Finance Ministry

China's NDRC to boost targeted investment - Bloomberg

US Treasury Sec Mnuchin: Convened meeting with six major bank CEOs


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD loses 1.21 as the dollar extends its gains

EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points. 


GBP/USD retreats amid UK GDP miss, reopening concerns

GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.


XAU/USD drops back below $1900, as US dollar rebounds ahead of data

Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.

Gold News

Ethereum price prepares for a bullish weekend, targeting $3,000

Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis. 

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more