Forex Market Updates

The market push and pull continues with the dollar folding but not breaking on Wednesday before buyers try to regain some control yesterday. However, the surge died down and we were almost back to where we were two days ago.

The risk is still difficult to start the day with, as the dispute between the US Treasury and the Fed only adds to the negative developments of the virus at the moment, with investors having to strike a balance between this and vaccine optimism.

On that last point, just be aware that Pfizer is expected to file an Emergency Use Clearance application with the FDA today and that could give algos / at-risk buyers something to work with (although maybe temporarily) later in the day.

As for the bond market, the fading continues after last Mondays vaccine news sold off, with Treasury yields slowly following lower over the week.

Back in FX, the same key technical levels from the start of the week come into play: 1.1900 in EUR / USD, 1.300 in GBP / USD, 0.7300 and 0.73400 in AUD / USD, 0.6942 in NZD / USD and some questions regarding the USD / JPY below 104.00.

Meanwhile, for the pound, theres also the prospect of Brexit talks to watch out for, so beware of that as we look to the weekend.