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GBP/USD trims the previous day’s losses with eyes on April 2018 peak at  1.37 level. US dollar drops amid cautious optimism backed by virus  vaccine, Georgian runoff hopes. UK announced third lockdown, fears of  South African variant of COVID also loom. US ISM Manufacturing PMI, UK  virus updates and American politics will be the key. EUR/USD is holding  above 1.2250 but Commerzbank spots a negative divergence on the daily  RSI which warrants caution. Nonetheless, the pair still targets 1.2624,  the 200-month moving average, in the long-term. The Georgia Senate  runoffs on January 5, 2021, will determine the balance of power in the  Senate. The Senate is currently controlled by Republicans, who hold 50  seats to the Democrats' 48. If the Democrats are able to win both  Georgia seats, the Senate would be tied at 50-50, with incoming Vice  President Harris becoming the potential tie-breaker in favour of the  Democrats.  According to economists at TD Securities, the USD could see  further downside momentum should the Democrats flip both Georgia seats.  The dollar index was at 89.733, but above Monday’s low of 89.415, seen  for the first time since April 2018. USD/JPY fell 0.2% to 102.92, after  dropping as low as 102.715 on Monday for the first time since March.

GBP/USD trims early Asian gains that refreshed multi-month top to  1.3698, before currently declining to 1.3680, up 0.10% intraday, while  heading into the London open on Monday. A one-month-old ascending trend  line near 1.3745 lures GBP/USD buyers unless the quote drops below  September 2020 high near 1.3480. The new year has begun with the dollar  on the back foot and a cautious market mood. Equities are only  marginally higher, the safe-haven dollar extends its decline, with  EUR/USD rising toward 1.23. the shared currency continued benefitting  from the prevalent bearish sentiment surrounding the US dollar. This, in  turn, assisted the EUR/GBP cross to gains some positive traction on  Monday and snap three consecutive days of losing streak. The dollar  index was down 0.3% at 89.597, not far above a more than 2-1/2 year low  of 89.515 made last week. The index dropped more than 7% last year, its  first annual loss since 2017. USD/JPY fell 0.2% to 102.95, after Japan's Prime Minister, Yoshihide  Suga, said his government is mulling a state of emergency in Tokyo as  infections rise. AUD/USD was up 0.2% at 0.7721. Cryptocurrencies  continue their uptrend, with Bitcoin trading around $32,000 after  surging above $34,000 over the holidays. Ethereum is also soaring,  changing hands above $1,000. XRP is attempting recovery above $0.20  after a legal issue sent Ripple's token to a free-fall.

The official announcement on a likely Brexit deal could be delayed by a minimum of a couple of hours, as the talks on the key issue of fisheries continue, several media houses reported. GBP/USD holds the higher ground, as the bulls aim to conquer the 1.36 barrier amid optimism over a potential Brexit deal. EUR/USD clings to 1.2200 as Brexit optimism downs the USD. The dollar was down on Thursday morning in Asia, with investors retreating from the safe-haven greenback and turning to the pound over expectations of an imminent Brexit deal that could help the U.K. avoid a turbulent economic rupture come Jan. 1. The dollar index inched down 0.09% to 90.168.

The GBP/USD pair refreshed daily tops, around the 1.3415 region in the last, albeit quickly retreated few pips thereafter. The pair was last seen trading near the 1.3440-45 region, up around 0.50% for the day. The pair built on the overnight late rebound from the vicinity of the 1.3300 mark and gained some strong follow-through traction through the first half of the trading action on Wednesday. Despite the lack of progress in Brexit negotiations, investors remain hopeful about the possibility of a last-minute EU-UK deal. This was seen as one of the key factors lending some support to the British pound.  The Bank of England (BOE) must keep a close eye on the inflation expectations as the Kingdom could find it difficult to manage its debt burden after the coronavirus pandemic, Chief Economist Andy Haldane said.  EUR/USD consolidates the Asian bounce ahead of the European open, as the US dollar holds the lower ground amid mixed market sentiment. The sentiment remains cautiously optimistic, with markets eagerly awaiting a Brexit trade deal breakthrough while on the other hand, US President obstructed a $900 billion COVID stimulus, calling the bill as a disgrace. The dollar index was down 0.23% to 90.338. The USD/JPY pair edged down 0.16% to 103.47. The AUD/USD pair gained 0.43% to 0.7553.

A modest pickup in the USD demand prompted some fresh selling around  GBP/USD on Tuesday. The discovery of a new COVID-19 strain continued  driving some haven flows towards the USD. Hopes for a last-minute Brexit  deal extended some support to the GBP and helped limit losses. EUR/USD  failed to capitalise on the overnight bounce and witnessed some fresh  selling on Tuesday. The discovery of a new COVID-19 variant benefitted  the safe-haven USD and exerted some pressure. The lack of any strong  follow-through selling warrants caution before placing aggressive  bearish bets. The dollar was up on Tuesday morning in Asia, but jitters  over a new COVID-19 strain left the greenback trading well below the  peaks seen during a rollercoaster session overnight. The dollar index  edged up 0.20% to 90.132. However, the dollar is headed for a third  consecutive quarterly loss and is down 12.5% from a three-year peak in  March.

GBP/USD added to its steep intraday decline and plunged to over one-week  lows. New coronavirus strains led to fresh lockdown in the UK and  weighed on the GBP. Weaker risk tone benefitted the safe-haven USD and  contributed to the selling bias. The pair opened with a bearish gap on  the first day of a new trading week in reaction to the imposition of  tighter restrictions in the UK to stem a fast-spreading new coronavirus  strain. This comes on the back of a deadlock in the post-Brexit trade  negotiations and weighed heavily on the British pound. Meanwhile, fresh  coronavirus jitters overshadowed the optimism over a deal on a  long-awaited $900 billion US coronavirus aid package and an emergency  use approval for Moderna's COVID-19 vaccine. This, in turn, took its  toll on the global risk sentiment and triggered a sharp pullback in the  equity markets. Following a volatile Q1, EUR/USD gained strong upside  traction breaking above the long-term downside trendline from the 2008  high. Essentially, the fact that the euro managed to clear this  important barrier was a strong bullish signal. The 1.45 mark would be an  ambitious target for investors who expect the shared currency to  perform well in the next years, according to economists at Rabobank. The  dollar index corrected after an extended slide on bets that a weak  dollar will favor growth in emerging economies next year. The trigger  for the reversal came from a story arguing that Janet Yellen, who is set  to be the next Treasury Secretary, may return to defending the U.S.'s  traditional policy of a strong dollar, after four years of unvarnished  attempts by the Trump administration to weaken it.

GPB/USD struggles near session lows, around 1.3500 mark on no-deal Brexit talks. Fading hopes for a last-minute Brexit deal prompted some aggressive selling around GBP/USD. A modest USD short-covering bounce contributed to the ongoing pullback from multi-year tops. The intraday selling around the British pound picked paced in the last hour and dragged the GBP/USD pair back below the key 1.3500 psychological mark, or fresh session lows. Having struggled to find acceptance above the 1.3600 mark on Thursday, the pair witnessed some long-unwinding trade on the last day of the week amid a flurry of Brexit-related headlines. British Prime Minister Boris Johnson suppressed hopes for a last-minute Brexit deal and said that the most likely outcome was for the UK to leave the EU without a deal. EUR/USD holds steady near 1.2250-60 region, just below multi-year tops. EUR/USD edged lower on Friday amid a modest USD short-covering bounce. The shared currency remained well supported by the incoming positive data. The German IFO Business Climate rose to 92.1 in December vs 90 expected. The EUR/USD pair traded with a mild negative bias through the early European session, albeit has managed to recover a major part of its intraday downtick. The pair was last seen trading around the 1.2255-60 region, just a few pips away from 32-month tops set on Thursday.  The pair witnessed some profit-taking on the last trading day of the week and was pressured by a modest US dollar short-covering bounce amid the underlying cautious mood around the equity markets. The US congressional negotiators still haven’t yet agreed on a new coronavirus-relief package and tempered the recent optimism. The dollar edged higher Friday, rebounded to a degree after recent sharp selling, but this safe haven remains largely friendless as risk appetite grows. The dollar index was up 0.1% at 89.820, just above the 2-1/2-year low hit on Thursday. The index is down 1.2% for the week so far, on course for its worst week in a month, and has fallen 6.5% this year to date. USD/JPY rose 0.2% to 103.35, after falling as far as 102.88 Thursday, with the Bank of Japan keeping its key interest rates and asset purchases unchanged, and extending its special support programs for pandemic-hit businesses by six months. The risk-sensitive AUD/USD was down 0.2% at 0.7608, yet is on course for its seventh consecutive weekly gain.

UK Interior Minister Priti Patel, a staunch supporter of Brexit, has said that the talks are in a tunnel and parliament may be reconvened if talks conclude with a deal. The senior minister added that the government is ready for a no-deal outcome. The EU term "tunnel" means intense negotiations. GBP/USD has extended its gains above 1.3580, extending its gains and hitting the highest since 2018. The dollar slumped to multi-year lows in early European trade Thursday, as growing confidence of both a new U.S. stimulus package and a Brexit deal boosted risk appetite at the expense of the world's safe haven. The dollar index, was down 0.5% at 89.877, falling to levels last seen in March 2018. USD/JPY fell 0.3% to 103.22, EUR/USD rose 0.3% to 1.2230, trading at levels not seen since March 2018, while the risk-sensitive AUD/USD was up 0.5% at 0.7614, again at levels last seen in March 2018.

Von der Leyen: there is a path to an agreement; GBP/USD nears 1.3479/83. Brexit to knock around 5% off UK GDP in the long run – ABN Amro. GBP/USD nears the September and current December highs which were made at 1.3483 and 1.3540. A drop below the 2020 uptrend line at 1.3142 would negate upside pressure and target 1.2855 November low as well as the 200-day moving average at 1.2759. EUR/USD consolidated in the weekly highs ahead of the Fed. EUR/USD rose 0.2% to 1.2170, trading near a 2 1/2-year high of 1.2177 touched on Monday. The flash version of the German Manufacturing PMI unexpectedly rose to 58.6 in December. The reading was well above consensus estimates pointing to a fall to 56.4 from 57.8 recorded in the previous month. The dollar continued to head lower in early European trade Wednesday, with traders deserting the safe haven as U.S. lawmakers make progress toward a Covid-19 relief package ahead of the Federal Reserve meeting. The dollar index was down 0.1% at 90.317, falling to levels last seen in April 2018. USD/JPY fell 0.2% to 103.44, while the risk-sensitive AUD/USD was up 0.1% at 0.7564, near the June 2018 high of at 0.7580 seen on Monday.

The GBP/USD pair held on to its modest gains near session tops, just below mid-1.3300s and had a rather muted reaction to the UK macro release. COVID-19 vaccine, expectations for more US stimulus undermined the USD and remained supportive. Mixed UK employment detail did little to influence or provide any meaningful impetus to the major. EUR/USD looks set to test 1.2200, fresh multi-year tops. A pennant breakout is likely on the hourly chart. RSI stays bullish while the spot recaptured 21-HMA. The dollar remained near multi-year lows in early European trade Tuesday, with little news to challenge a dominant narrative that sees loose U.S. policy underpinning a broad global recovery next year. The dollar index was largely flat at 90.688, after sinking as low as 90.419 on Monday, a level unseen since April 2018. USD/JPY fell 0.1% to 104.06 and AUD/USD was down 0.2% at 0.7523, after touching the highest since June 2018 at 0.7578 on Monday.