Read full post at forexlive.com
Markets:
The dominant theme in FX remains the EUR/USD break above the September highs. After a brief dip back to 1.2050 at the start of New York trade, it got back on track and finishes near 1.21 on a general decline in the US dollar.
The stimulus headlines helped the risk-on mood and weighed on the dollar in the latter half of trade. The commodity currencies took advantage with AUD turning a loss into a decent gain. AUD/USD is now just a few pips from the August high in a break that could mirror what we’ve seen in the euro.
Cable wasn’t so lucky as Brexit talks suffered a setback. The UK offered some concessions on fishing but there are still some big hangups including the UK’s internal market bill. The EU is not keen on a potential break of international law and that could derail the talks. Tomorrow is a big day with Frost set to deliver an update.
It’s also a big day in the oil market with the OPEC+ meeting all set. There were some positive rumblings, at least on the OPEC side and WTI bounced off the old highs in a nice intraday turnaround.
Gold also continued to add to yesterday’s gains. Stimulus talks and dollar weakness are both helping.