EUR/USD. November 19, 2020 – Euro shows decline
At the end of yesterday's session, the EUR/USD pair weakened to the level of 1.1810. The current quote for the pair is 1.1835.
The drivers of the decline were the correction of stock indices and gold, which fell in price after the news from Pfizer. The pharmaceutical company said the new COVID-19 vaccine is 95% effective, up from the previously announced 90%. And gold, as a rule, correlates positively with the European currency, therefore, the decline in the precious metal caused a correction in EUR/USD.
The EU summit on the fight against coronavirus kicks off today. Also on the agenda is the issue of the EU budget plan, which was previously blocked by Hungary and Poland. In the evening, the head of the ECB Christine Lagarde will speak.
In the US, data on the number of applications for unemployment benefits will be published. It is expected that the number of initial applications may be reduced from 709 thousand to 685 thousand. And the number of repeated requests should decrease from 6,786 thousand to 6,250 thousand. Also of interest will be the publication of the index of manufacturing activity from the Philadelphia Federal reserve for November and statistics on second-home sales in October.
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GBP/USD. November 20, 2020 – Unexpectedly strong retail sales data supported sterling
Despite the growing risks of a «hard» Brexit, the GBP/USD pair continues to move to local highs in the 1.3300 area. The current quote is 1.3280.
The dynamics of the pair was influenced by the statistics on the labor market in the UK. The number of applications for primary unemployment benefits for the week increased from 711 to 742 thousand against the forecast of 707 thousand. At the same time, investors were pleased with the reduction in secondary circulation from 6.801 million to 6.372 million against expectations of 6.47 million.
Today you should pay attention to the publication of a report on retail sales in the country. The figure in October came out much better than forecasted: sales increased by 1.2% compared to September, when the indicator grew by 1.4%. The forecast assumed growth of only 0.1%. In annual terms, sales increased by 5.8%.
At the same time, difficulties in negotiating Brexit continue to put pressure on the pound. Today it became known that negotiations were suspended again, now due to the discovery of Covid from one of the members of the negotiating team.