Forex Today: Stimulus hopes and vaccination plans lifting the mood

FXStreet Team FXStreet

Here is what you need to know on Monday, December 7:

The greenback corrected some of its extreme oversold conditions after reaching fresh year lows against most major rivals but remains the weakest currency across the FX board.

The EUR/USD pair is firmly anchored above 1.21, while USD/CAD trades sub-1.2800. USD/JPY and AUD/USD saw little action with the latter reaching a two-year high.

The GBP/USD pair traded as high as 1.3539 but closed the day around 1.3430 amid contradictory Brexit headlines. Hopes boosted the pair early on Friday, but intensive Brexit trade talks have bare no fruit. EU´s Brexit Negotiator Michel Barnier tweeted that, after a week of negotiations in London, both sides were unable to reach an agreement, with persistent, significant differences on the issues of a level playing field, governance and fisheries.

On Saturday, EU’s Commission leader Ursula von der Leyen said, “I had a phone call with Boris Johnson on the EU-UK negotiations. Differences remain. No agreement feasible if these are not resolved. Chief negotiators will reconvene tomorrow. We will speak again on Monday.” GBP/USD could gap lower at the weekly opening.

Gold recovered last week, closing it at $1,838 a troy ounce, below the base of its previous range. Mixed US employment data fueled hopes for fiscal stimulus, providing support to the bright metal.

US Treasury yields reached a three-week high, with the yield on the benchmark 10-year note reaching 0.97%.

Equities advanced on Friday amid hopes related to coronavirus vaccines. Russia has started immunization on Saturday, and the UK plans to start this week. Several other countries are on their way to start preventive vaccination before year-end.

Bitcoin technicals suggest an imminent correction before the next leg up

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FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.