Forex Today: Definitions’ time has arrived

FXStreet Team FXStreet

Here is what you need to know on Monday, December 21:

The financial markets keep gyrating around Brexit negotiations and US funding talks. The latter seems to be in better shape than the first one, although definitions on both are expected this week.

Regarding US stimulus, US lawmakers announced on Saturday they reached a compromise, paving the way for a $900 billion coronavirus relief package and government funding. A sticky point is a dispute over Fed’s lending facilities, as Republicans are against letting the central bank interfere in business. Additional headlines on the issue may come ahead of the weekly opening.

The greenback corrected extreme oversold conditions on Friday but resumed its decline ahead of the weekly close. EUR/USD finished the week around 1.2250, near its year’s high at 1.2272.

On the Brexit front, trade talks are still stuck. according to weekend headlines. Differences remain not only around fisheries but also on the level playing field.

On Saturday, UK Prime Minister Boris Johnson moved London and areas of Southeast England into tier-four level of restrictions, amid a new variant of the coronavirus, which seems to be much more contagious. Johnson said that there’s no reason to believe the vaccine will be any less effective against it. Still, discouraging news may push sterling lower at the weekly opening.

Gold had spent the week mute just below the $1,900 level. Could get a boost and gap higher once the US announces financial decisions.

Bitcoin price at $100,000 is overly conservative, says on-chain analyst Willy Woo

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FXStreet Team

FXStreet

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.