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GBP/USD at four-day tops, extending its bullish momentum above 1.3200, as US dollar loses further ground. Risk-on mood overshadows discouraging Brexit developments. Focus remains on the covid stats amid light economic docket.  EUR/USD prints gains as risk-on weighs over the safe-haven greenback, in the 1.1850 neighborhood. The rising coronavirus cases across the Eurozone could cap upside in the EUR. Meanwhile the agreement on the Regional Comprehensive Economic Partnership, or RCEP, free trade deal also adds to the upbeat market sentiment. The dollar weakened in early European trade Monday, with positive economic data out of Asia increasing optimism of a global recovery even given the continuing rise of new Covid-19 cases. The Dollar Index was down 0.2% at 92.597. USD/JPY fell 0.1% to 104.53, while the risk sensitive AUD/USD rose 0.3% to 0.7287.

Cable is likely to trade between 1.3000 and 1.3250 in the next weeks, noted FX Strategists at UOB Group. GBP/USD awaits fresh clues while taking rounds to the weekly low, off intraday bottom recently. Coronavirus cases in the UK, the US refresh record high, British economy losses more momentum in September. Brexit signals keep being mixed, UK’s finance ministry can extend tax break to manufacturers. Downbeat statements from Fed’s Powell, RBNZ’s Orr emphasize Bailey speech. EUR/USD challenges 3-day peaks in the 1.1820/30 band. The dollar keeps correcting lower and supports the pair’s upside. EMU’s flash Q3 GDP, Balance of Trade figures next of note in the docket. The dollar edged marginally lower in early European trade Friday, but the continuing rise of new Covid-19 cases throughout Europe and the U.S. is making traders nervous of buying riskier currencies despite the positive news of a potential vaccine. The dollar index was down 0.1% at 92.898. GBP/USD rose 0.3% to 1.3155, USD/JPY fell 0.1% to 105.00, while the risk sensitive AUD/USD rose 0.1% to 0.7233.

GBP/USD witnessed some follow-through selling for the second consecutive session on Thursday. Mostly disappointing UK macro data failed to provide any respite or ease the intraday selling bias. Data published by the Office for National Statistics showed that the UK economy expanded by 1.1% in September and 15.5% during the third quarter of 2020, both missing consensus estimates. Separately, the UK Industrial and Manufacturing Production figures for September also fell short of market expectations. The data comes on the back of persistent Brexit-related uncertainties and continued undermining the sentiment surrounding the British pound. EUR/USD is currently side-lined near the 50-day simple moving average (SMA) at 1.1768, down 0.88% this week. The pair risks a deeper drop on dovish ECB talk and softer German yields. Continued gains in Treasury yields would add to bearish pressures. The dollar edged higher in early European trade Thursday, with traders shying away from riskier currencies as they readjusted their expectations surrounding a potential Covid-19 vaccine. EUR/USD is likely to keep trading within the 1.1720-1.1880 range in the next weeks. The Dollar Index was up 0.1% at 93.073, USD/JPY fell 0.1% to 105.28, while the risk sensitive AUD/USD fell 0.2% to 0.7262.

GBP/USD recedes the upside momentum while declining from the multiday high of 1.3280 to 1.3263, up 0.12% intraday. The pair recently benefited from the mixed risk sentiment and increasing odds of a soft Brexit. Though, virus woes, an off in the US limit the quote’s short-term moves. Cable’s further upside is forecast to meet a relevant hurdle at 1.3380 ahead of 1.3420, noted FX Strategists at UOB Group. Commerzbank expects the cable to fail in the 1.3310-1.3422 band. EUR/USD is in stasis amid increased hopes for coronavirus vaccine and evidence of a renewed slowdown in the German economy. The European Central Bank President Lagarde's speech, due at 13:00 GMT, may provide a clear directional bias to the common currency. The pair extends its 20-pips range play above 1.1800 into the European open, as markets digest the latest vaccine euphoria amid coronavirus escalation globally. The ECB must announce additional monetary policy easing in December to avoid the risk of deflation in the Eurozone, Oscar Arce, the Spanish central bank’s Chief Economist said in an interview in Madrid late Tuesday. With several Eurozone nations back in the economically-painful coronavirus lockdown restrictions, ECB's President Lagarde has little room to sound hawkish. The German economy is already showing signs of weakness. The German ZEW index dropped from 56.1 to 39 in the month of November, reflecting concerns about a double-dip recession. The data marks the beginning of what should be a series of weaker economic reports poised to plague the currency. The dollar edged higher in early European trade Wednesday in thin volumes, as traders continued to digest the implications of Pfizer’s potential Covid-19 vaccine. The Dollar Index (DXY) was up just 0.04% at 92.775. USD/JPY rose 0.1% to 105.39, while the risk sensitive AUD/USD rose 0.2% to 0.7295. The New Zealand dollar recovered from an early dip to hit its strongest level in more than a year as traders scaled back bets that the central bank would move to negative interest rates.

GBP/USD recedes to 1.3160 during the initial hour of Tuesday’s Asian session. The pair refreshed the two-month peak on Monday but failed to stay positive beyond 1.3200. However, bullish signals from the MACD joins strong RSI, not near the overbought region, favor the GBP/USD buyers to keep the optimism while targeting a resistance line stretched from September 10, at 1.3246 now. In doing so, a clear break above the recent high of 1.3208 becomes necessary. While the quote is likely to post another U-turn from the mid-1.3200 area, any further upside can be challenged by the August 18 high near 1.3270, a break of which could challenge the yearly top surrounding 1.3485. EUR/USD bounces from key support, as treasury yields yield retreat from five-month highs, weakening demand for the US dollar.  The pair is currently trading at session highs near 1.1835, having found bids around the ascending 5-day simple moving average (SMA) at 1.1812. The dollar is losing altitude against most majors, possibly tracking the decline in the US 10-year yield to 0.91% from the five-month high of 0.97%. Markets seem to be reassessing the optimism generated by the US drugmaker Pfizer's disclosure of the positive initial trial results of its coronavirus vaccine. Dollar Index was up 0.1% at 92.778, above Monday's 10-week low of 92.12. USD/JPY fell 0.3% to 105.03, while the risk sensitive AUD/USD fell 0.1% to 0.7278, near Monday’s seven-week high.

GBP/USD faced rejection near the 1.3200 mark and witnessed a modest pullback on Monday. Comments by Ireland's Coveney revived no-deal Brexit fears and weighed on the British pound. A subdued USD price action helped limit the downside ahead of BoE Governor Bailey’s speech. EUR/USD advanced to 1.1890 retaining substantial gains at the end of the week as the US presidential election blurred pandemic chaos. The EUR/USD pair has the risk skewed to the upside. Further up sit the mid-August high at 1.1966 and the August peak at 1.2014. The dollar weakened in early European trade Monday, as traders looked to riskier currencies to play Joe Biden’s victory in the U.S. presidential election amid hope for more fiscal largesse and continued easy monetary policy. The Dollar Index was down 0.1% at 92.172, falling to its lowest level since early September. USD/JPY rose 0.2% to 103.50, while the risk sensitive AUD/USD rose 0.5% to 0.7290, a seven-week high.

The renewed Brexit concerns failed to exert negative impact on the pound, as the BOE’s QE expansion and the Finance Minister Rishi Sunak’s job protection scheme extension offered a double booster shot. GBP/USD trades modestly flat at 1.3133, looking to retest two-week highs of 1.3157 reached in early Asia. The sudden and strong lift-off in GBP that sent it a high of 1.3155 yesterday (05 Nov) and the subsequent strong daily closing at 1.3153 (+1.23%) was unexpected. While upward momentum has improved, GBP has to move and stay above the major resistance at 1.3200 before further sustained advance can be expected. EUR/USD is taking a bull breather, having rallied by 0.84% on Thursday to register the biggest single-day percentage gain since June 4. The pair is currently trading largely unchanged on the day near 1.1824 but is up over 1.5% this week.  October’s peak at 1.1880 is a solid resistance and while EUR could break this level, it is unlikely able to maintain a foothold above it. Next resistance is at 1.1915. Support is at 1.1785 but only a break of 1.1760 would indicate the current upward pressure has eased. The dollar edged higher in early European trade Friday, with the result of the contentious U.S. presidential election still unknown and the possibility of a legal battle likely to lead to prolonged uncertainty. The Dollar Index was up 0.1% at 92.537. USD/JPY fell 0.1% to 103.44, while the risk sensitive AUD/USD fell 0.2% to 0.7269.

The GBP/USD pair rallied around 60-65 pips post-BoE announcement and shot to fresh session tops, around the key 1.3000 psychological mark, albeit lacking follow-through. The supporting factor, to a larger extent, was offset by a larger than expected increase in the size of the BoE's asset purchase program, which now stands at £875 billion, up from £745 billion prior. EUR/USD is set to test 1.15-1.20 range resistance as US election risk eases. The European Central Bank (ECB) assuring more PEPP and funding support should reduce regional lockdown fiscal blowout risks. EUR/USD could edge higher in the near-term, although a move to 1.1880 is not favoured for the time being. Further EUR strength is not ruled out but it is too soon to expect a move towards last month’s top at 1.1880. On a shorter-term note, 1.1855 is already quite a strong level. All in, the bias for EUR appears to be tilted to the upside with 1.1550 acting as a key support. Dollar Index was down 0.1% at 93.312. USD/JPY fell 0.1% to 104.38, while the risk sensitive AUD/USD rose 0.2% to 0.7187.

GBP/USD drops to the session low at 1.2920, down 0.4% intraday, while heading into Wednesday’s London open. The Cable earlier surged to 1.3140, before bouncing off 1.2934, while Incumbent US President Donald Trump is reported to have won Iowa, Texas, Florida and Ohio, thwarting Joe Biden’s hopes of scoring a major red state victory as the race for the White House again proves far tighter than the polls had indicated. EUR/USD has retraced almost all of Tuesday’s gains although it is currently trading off its early morning low at 1.1640. Given the risk of a double dip in economic activity in Europe, a dovish ECB and a delay over dispersing the EU’s Recovery Fund we see the shine as coming off the EUR, Rabobank reported, at this stage we retain our forecast of EUR/USD at 1.16 on a three-month view. The market focus will remain on the US political development, which, along with the broader market risk sentiment will continue to influence the USD price dynamics and infuse some volatility around the GBP/USD, EUR/USD, and USD/JPY pairs. The Dollar Index was up 0.6% at 94.115. It had shed 0.9% on Tuesday, its biggest daily drop since late March as traders had bet on a clear cut victory for Democrat candidate Joe Biden. USD/JPY rose 0.4% to 104.91, while the risk sensitive AUD/USD fell 1.3% to 0.7065.

GBP/USD eyes a firm break above 1.2933 for bulls to take over. Potential falling wedge formation spotted on the hourly chart. Hourly RSI stays bullish, as all eyes remain on the US election. Cable’s decline does not rule out a potential retracement to the 1.2845 level in the next weeks. EUR/USD leaves behind the recent pessimism and retakes 1.1670. European markets opened Tuesday’s session with decent gains.  US presidential elections will be the salient event on Tuesday/Wednesday. After bottoming out in the vicinity of the 1.1600 mark, EUR/USD appears to have met some buying interest and advances to the 1.1670 area, or 2-day highs.  The dollar weakened in early European trade Tuesday, giving up some earlier gains, as traders look for a more neutral position ahead of the U.S. presidential election. The dollar index was down 0.2% at 93.915 while USD/JPY fell 0.1% to 104.56.