ForexLive European FX news wrap: Pound slightly softer as the Brexit saga drags on

Author: Justin Low | Category: News

Forex news from the European trading session - 27 November 2020

Headlines:

Markets:

  • CAD leads, GBP lags on the day
  • European equities a little higher; E-minis up 0.1%
  • US 10-year yields down 2.5 bps to 0.857%
  • Gold down 0.5% to $1,807.60
  • WTI down 0.7% to $45.35
  • Bitcoin down 0.5% to $16,977

EOD 27-11
It was a largely quiet session with a couple of Brexit headlines helping to move things along, as the market observes little change amid the Thanksgiving holiday period.

US markets will return later today but for a half-day, but liquidity conditions are set to remain thinner than usual as most traders and investors will be off on holiday.

Major currencies observed little change for the most part, with the pound being arguably the only notable mover during the session.

Cable touched a high of 1.3380 early on before slipping back to near unchanged level around 1.3350-60, before a couple of Brexit headlines crossed and brought the pair down below its 100-hour moving average to a low of 1.3312.

EU chief Brexit negotiator confirmed that he will be headed to London for more talks but all the reports today suggests that there is still an impasse for the time being.

It could all be a play on the optics and more political theater to stretch the toughness in getting to a "deal" but either way, it hints that there is likely nothing positive set to follow before the market closes this week.

Meanwhile, EUR/USD kept above 1.1900 but isn't chasing a further break of the week's high of 1.1940. USD/JPY eased to just under 104.00 earlier before paring some of those losses as the session moved along.

Elsewhere, commodity currencies maintained light gains against the dollar as they keep with most of the momentum from earlier in the week.

And gold continues to trade sideways, consolidating after a drop towards $1,800 as price action sticks around there and $1,818 for now.

Looking ahead, it could well be yet another quiet affair with the Thanksgiving holiday mood still persisting so there might not be much action until we get back into the thick of things next week. I wish you all a great rest of the day and a great weekend ahead!

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