Forex Today: Risk-off at the weekly opening

FXStreet Team FXStreet

Here is what you need to know on Monday, November 16:

The US continues to report record coronavirus infections. On Friday, the country informed over 184K new cases in the past 24 hours, while US President Donald Trump announced the imminent distribution of COVID-19 vaccines. The announcement was taken with a pinch of salt and considered a political movement. Elections remain undefined as Trump refuses to concede and continues its legal battle.

Several US states have announced measures to fight the ongoing coronavirus outbreak, announcing curfews, and even localized lockdowns. The health system is not stressed in the US, but at the current pace of contagions, it won’t take long. In Europe, the situation is quite alike, although the health systems are on a brink of collapsing.

Brexit-related weekend news were also worrisome. Ireland’s Foreign Minister Simon Coveney said that the two sides are still apart on fishing rights, adding that if the UK passes the Internal Market Bill, chances of an agreement will be off. On Sunday, UK negotiator, David Frost, said that the UK will not change its stance as it seeks a post-Brexit deal with the EU. The United Kingdom has quite a scarce macroeconomic calendar this week, with nothing scheduled until Wednesday when the country will publish October inflation data.

Wall Street closed the week with substantial gains, despite persistent uncertainty about the presidential election and the pandemic. US Treasury yields retreated from weekly highs but finished it with gains.

Gold advanced on Friday and settled at $1,889.00 a troy ounce. Crude oil prices, on the other hand, remained under pressure and WTI closed at $40.00 a barrel.

Ripple Price Forecast: XRP tests key Fibo resistance near $0.27

Author

FXStreet Team

FXStreet

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.