Trader confidence is rising in the FX market, benefiting ‘risk-on’ currency pairs like EUR/USD, GBP/USD and AUD/USD. However, there is less confidence in the stock markets.
USD/JPY and cross-yen faces upside risks in the short term amid month-end rebalancing.
GBP/USD is firmer and many Sterling crosses are higher on a minor risk rally. That’s despite a lack of progress in the EU-UK talks on a post-Brexit trade deal.
Germany’s DAX 30 index’s rebound may prove short-lived as a worrying surge in Covid-19 infections threatens to upend the nation’s economic recovery.
Crude oil and gold prices gained on US fiscal stimulus hopes. Ahead, the focus for WTI and XAU/USD shifts to a meeting between Nancy Pelosi and Steven Mnuchin.