EUR/USD extends gains to fresh seven-week highs.
The American dollar is under selling pressure amid a better market mood. EUR/USD quotes above 1.1140 ahead of several Fed’s speakers that can rock markets. The Brexit deal swept the slow-moving euro off its feet – and may it is time for a reality check. Thursday's announcement of a new EU-UK accord has been having a broad effect beyond the surge in the Pound. The old continent – which was also set to suffer in a no-deal scenario, is also relieved. EUR/USD has reached a high of 1.1140, the highest since late August, breaking the uptrend resistance on its way. However, the week and the Brexit saga are far from over. The UK parliament convenes for a special session on Saturday to vote on the deal – and it will go down to the wire. Markets are closed on the weekend, but announcements by MPs about their votes are set to rock markets within next couple of weeks.
USD/JPY struggles near mid-108.00s pivotal point amid weaker USD.
US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed. The broad-based selling pressure surrounding the Greenback made it difficult for the USD/JPY pair to capitalize on the rising United States (US) Treasury bond yields on Friday. After rising to a daily high of 108.73 during the European trading hours, the pair lost its traction and was last seen trading at 108.55, losing 0.1% on a daily basis. The upbeat performance of major European currencies and disappointing macroeconomic data releases from the US this week forced the Greenback to face persistent selling pressure. The US Dollar Index, which gauges the USD's value against a basket of six major currencies, slumped to its lowest level since late August at 97.44 and was last seen moving sideways near that level, erasing 0.12% on the day and 0.9% since Monday.
GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in the parliament after securing an accord with the EU. GBP/USD has been trading along a steep upward trendline since mid-October – a bullish sign. The pair trades well above the 50, 100, and 200 Simple Moving Averages and momentum remains to the upside. At the time of writing, the Relative Strength Index (RSI) is just below 70 – thus outside overbought conditions. Resistance awaits at 1.2895, which has been the post-surge high on Thursday. The initial peak of 1.2989 – the highest since May – is the next level to watch. The next levels are 1.3040, 1.3075, and 1.3130 and all date back to the spring. Support awaits at 1.28, which was a stepping stone on the way up. It is followed by 1.2750, which was a swing low earlier this week. Next, we find 1.2706, the high point on Friday, and 1.2655, that worked in both direction earlier this week.
Gold price finds difficulty to break 1485.00 level, to show bullish bias and test the EMA50, and as long as the price is below 1507.50, our bearish overview will remain active, organized inside the bearish channel that appears on the chart, reminding you that our first main target is located at 1447.00.
BITCOIN and ALTCOINS
In last month Bitcoin price dropped and is cruising in a range between $7.900 and $8.400. Most of altcoins dropped slightly against Bitcoin who remains the absolute king of digital assets in the moment. Many other players are also entering blockchain and crypto field and the future of money is digital for sure. Institutional investors are investing 200-500 million dollars weekly. Daily volume of trading with cryptocurrencies has surpassed 50 billion dollars. The general sentiment in the crypto market is very positive and as said many times already, we expect a huge breakout of cryptocurrency. The blockchain industry is developing extremely fast. Various projects are coming to life, more and more big merchants are starting to accept cryptocurrencies, first Smart Cities designed on blockchain solutions are being built, even some countries are considering establishing national government-backed cryptocurrencies.