Forex Today: Brexit drama continues, gold keeps advancing

FXStreet Team FXStreet

Here is what you need to know on Wednesday, December 9:

The Brexit drama continues, with contradictory headlines throughout the day. Still, such news had a limited effect on the pound, as investors turned cautious. Mid-European session, British Cabinet Minister Michael Gove has announced that they have reached an agreement in principle.

However, soon afterwards, and according to an EU source, EU’s chief negotiator Michel Barnier told European ministers that the chances of a deal are “very slim.” Even further, German Minister Michael Roth said that there was no substantial progress in the EU-UK trade talks, adding that "it remains totally uncertain whether Britain and EU can reach a trade deal." The latest on the matter is that UK PM Boris Johnson is traveling to Brussels this Wednesday to speak with European Commission President Ursula Von der Leyen. GBP/USD ended the day little changed, around 1.3160.

Most major pairs remained lifeless and confined to tight intraday ranges. The dollar edged higher but is far from bullish. EUR/USD trades above 1.2100, AUD/USD retains the 0.7400 threshold.

Wall Street turned positive during US trading hours after House Speaker Nancy Pelosi said she is hopeful of getting a coronavirus relief deal, providing support for Wall Street. US Treasury yields, on the other hand, ticked lower.

The UK kick-started massive COVID-19 vaccination with Pfizer’s vaccine. Markets payers are cautiously optimistic about an economic comeback while concerned about the current coronavirus developments. Meanwhile, the US continued to report record new contagions. The seven-day average stands at 196K, while the death toll is also at record highs.

Gold kept advancing, reaching $1,875.20 a troy ounce, its highest in two weeks. It closed the day around 1,872.50. Crude oil prices post modest daily losses ahead of US stockpiles reports.

Cryptocurrencies Price Prediction: Ripple, Stellar & Band Protocol – American Wrap 08 Dec

Author

FXStreet Team

FXStreet

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.