Forex Today: Dollar’s weakness keeps spreading, Brexit deal awaited

FXStreet Team FXStreet

Here is what you need to know on Wednesday, December 16:

The dollar found some market favor at the beginning of the day amid a risk-off mood but ended the day in the red against most major rivals.

The sentiment was sour amid fresh coronavirus-related lockdowns in the US and Europe, as e New York Mayor Bill de Blasio warned that the city needs to prepare for a full shutdown, as the number of hospitalizations keeps growing. Germany, the Netherlands, and London have announced tight restrictive measures.

Brexit tensions keep mounting. UK PM Boris Johnson’s spokesman said that the UK wants a post-Brexit deal but not “at any cost.” PM Johnson told his senior minister that the most likely outcome was a no-deal Brexit. The news feeds were flooded by rumors and speculation, but no official announcement has been made at the end of the day. Speculation that the EU and the UK are close to clinching a deal sent GBP/USD to the 1.3450 price zone.

The Canadian dollar was the best performer, with USD/CAD falling below 1.2700 a fresh multi-year low. Higher oil prices and Wall Street’s advance underpinned the commodity-linked currency.

The US Electoral College formally voted to elect Joe Biden on Monday, and Senate Majority Leader Mitch McConnell acknowledged Joe Biden as the president-elect.

The US Food and Drug Administration confirmed that the Moderna’s coronavirus vaccine has an overall efficacy of over 94%, and could grant it emergency use before the weekend. A group of experts is set to meet next Thursday to offer their recommendations.

Gold prices surged to fresh weekly highs above $1,850 a troy ounce, amid the broad dollar’s weakness. WTI settled at $47.50 a barrel.

Bitcoin Cash price gearing up for a potential pullback to $270 – Confluence Detector

Author

FXStreet Team

FXStreet

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.