UK asks EU for Brexit grace period extension to 2023 – BBC

Dhwani Mehta FXStreet

The UK has requested for an extension of a grace period until 2023 on trade checks that would be conducted between Northern Ireland and the rest of the Kingdom, BBC News reports, citing Cabinet Office Secretary Michael Gove’s letter to the European Commission’s Vice President Maros Sefcovic.

Reuters reported that the two sides had agreed a three-month grace period on checks on food goods being moved by supermarkets and some wholesale groups from Britain to Northern Ireland, as a part of the Brexit deal.

Market reaction

GBP/USD is wavering in a 20-pips range around 1.3650 over the last hour, digesting the upbeat UK Services PMI and positive vaccine developments amid a broad-based US dollar rebound.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD consolidates above 0.7000 as RBA hike bets support amid softer USD

AUD/USD steadies above 0.7000 in Friday’s Asian session, stalling the overnight pullback from a one-month top as RBA rate-hike expectations act as a tailwind for the Aussie. Moreover, the US Dollar remains on the back foot amid hopes of Iran diplomacy, further supporting the currency pair. However, geopolitical risks and hawkish Fed expectations limit USD losses.

USD/JPY flatlines near 157.70 after hot Tokyo CPI as focus remains on BoJ

USD/JPY consolidates around 157.70 during the Asian session on Friday, moving little following the release of hot Tokyo CPI as focus remains on the highly anticipated BoJ rate decision. Meanwhile, upside remains capped as the US Dollar stays depressed amid the Euro's post-ECB rise. However, Thursday's US macro data reaffirmed Fed hike bets, which, along with geopolitical uncertainties, support the buck and the currency pair.

Gold falls to near $4,000 as US PCE data reinforces December Fed hike odds

Gold price falls to around $4,015 during the early Asian session on Friday. The precious metal loses ground as US inflation data reinforced expectations ‌of a Federal Reserve interest rate hike later this year.

Bank of Japan to leave interest rates steady at 1.25%

The Bank of Japan is set to announce its monetary policy decision on Friday at around 02:30 GMT. Like the Federal Reserve, financial markets are confident that the BoJ will leave interest rates unchanged, after raising them by 25 basis points to 1.25% in the September policy meeting. This is the highest interest rate level seen in 31 years in Japan.

Ethereum dips as US PCE inflation reinforces December rate hike

Ethereum fell below $2,300, down 4.8% on Thursday following a rise in US Personal Consumption Expenditure inflation. The PCE Price Index climbed 0.5% MoM and 3.6% YoY in September, matching market forecasts. Core PCE, which excludes volatile energy and food prices, increased by 0.3% monthly and 3.1% yearly, also in line with expectations.

A hot US economy is supposed to sink Gold. It didn't. Here's why

Gold (XAU/USD) remains under pressure near $4,000, as stronger-than-expected United States (US) economic data reinforce expectations of another Federal Reserve (Fed) interest rate hike in December. Economic growth is accelerating, inflation remains elevated, and borrowing costs could rise further.