The USD has become soft. What's the tactical outlook against its main counterparts?
EUR/USD to Face Critical Support at 1.1685
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold after a remarkable correction stands below 50% retracement area. The new stimulus should help gold to move higher.
EU Market View
Looking ahead, highlights from macroeconomic calendar include Eurozone CPI US Retail Sales and University of Michigan, European Council Summit and Fed’s Williams speech. UK Chief Brexit Negotiator Frost said he was “surprised” that the “EU is no longer committed to working ‘intensively’ to reach a future partnership”. Mills in China are reportedly being told to stop buying Australian cotton. Government sources said the cotton industry could face tariffs as high as 40%.
EU Key Point
- UK's Raab supports that UK cannot have to make all the compromises on Brexit
- Japan PM Suga supports that economy remains in a severe state
Asia-Pacific stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs
Fed's Powell said a slowing recovery and a surging pandemic meant the US was entering a "challenging" few months, with the potential deployment of a vaccine still facing hurdles.