Forex Today: Gold melts, dollar declines, Brexit and OPEC headlines eyed
|Here is what you need to know on Monday, November 30:
A busy week kicks off with stocks, gold, and the dollar all edging lower together as November draws to an end. Fresh Brexit optimism is supporting the pound while oil is struggling with OPEC+ disagreements. Vaccine developments and data releases are eyed.
Gold has been extending its downtrend decline after cracking below $1,800 last week. Cascading stops and optimism about a coronavirus vaccine seem to be pushing the precious metal lower. End-of-month flows may trigger high volatility.
The dollar is on the back foot alongside falling US Treasury yields. EUR/USD is standing out by nearing 1.20 German and Spanish inflation figures are due out during the day. Christine Lagarde, President of the European Central Bank, will speak later in the day.
Brexit: UK Foreign Secretary Dominic Raab expressed optimism about reaching a deal, pending a compromise from Brussels on fisheries. He added that both sides have made progress on other topics such as competition and state aid. GBP/USD is edging up toward 1.3350. Talks continue in London.
Vaccine: The UK regulator may approve vaccines by Pfizer/BioNTech and Moderna as early as this week. The American FDA may do so late next week.
US COVID-19 cases and deaths have dipped from the highs, but the data may be skewed due to the Thanksgiving holiday. Hospitalizations have hit a new high above 93,000.
US Pending Home Sales are set to show strength in the housing sector. Investors are eyeing November's Nonfarm Payrolls due on Friday.
WTI Crude Oil has dropped below $45 ahead of the virtual OPEC+ virtual meeting. At the time of writing, there is no agreement on further cuts as some countries want an easing in output restrictions.
Chinese Manufacturing and Services Purchasing Managers' Index both beat estimates, showing strength in the world's second-largest economy.
Cryptocurrencies have been extending their recovery after tumbling down late last week. Bitcoin is changing hands at around $18,500.
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