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Daily market commentary: The dollar is losing ground to the Euro and the Pound



FOREX

The dollar is losing ground to the Euro and the Pound during early Friday trading, as a resurgence in risk appetite followed news that Nancy Pelosi and Steven Mnuchin restarted talks in Washington over a much-needed economic stimulus package. Meanwhile, Joe Biden’s lead in the polls is making the possibility of a clear-cut indisputable election win more likely, with investors increasing appetite for risk reflecting the pricing-in of a smooth transition of power.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

As the dollar weakens, gold prices are rallying above $1,900 and nearing the first resistance area of $1,920. Hopes for further fiscal stimulus and expectations for other central bank interventions – maybe not in the immediate future, but in 2021 – are keeping an historical high attention on gold.

From a technical point of view, we are seeing a recovery of strength of gold, which is continuing its rebound from the key support zone of $1,850-1,860. As long as prices remain above this threshold the trading range of the last two months, between $1,850 and $2,070, remains valid, while the main trend remains supportive for bullion.

Carlo Alberto De Casa – Chief analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: The dollar is losing ground to the Euro and the Pound

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