Home Forex News Dollar Lifted In Early Asian Trades As Safe Heaven Bid Amid Rising...

Dollar Lifted In Early Asian Trades As Safe Heaven Bid Amid Rising Covid Cases Worldwide


  • Pound lost yesterday’s gains as Brexit risk rises sharply.
  • The Times reported that EU leaders may demand a no-deal exit plans later in the day

Risk sentiment decline after US equities fell for a second-straight day, even after European shares built on a record-breaking rally this month, as investors weighed the surge in Covid-19 cases against the recent vaccine breakthroughs that will help the global economy get back on its feet. Accordingly a small pull-back in Dollar is seen in Asian trades.

Pound dropped modestly in early trades today after straight rally in last four days as hopes grow of a Brexit deal likely to get signed by next week. Apparently EU leaders have given 26th November a practical deadline for concluding the deal. Earlier pound further supported amid October Inflation came in higher-than-expected to 0.7%.

The Times is reporting that Europe’s leaders will demand today that the European Commission publish no-deal plans amid fears that Brexit negotiations are dragging on without businesses knowing what they need to prepare for in the worst scenario. Several European Union governments are growing frustrated that deadlines for trade, security and fishing talks are slipping, leaving little time to get ready if the negotiations fail to reach agreement. Accordingly high cautious required in GBP pairs.

US Stocks end lower

The US stock market finished firmly into negative territory after reversing earlier gains on Wednesday, 18 November 2020, registering second straight session of losing streak, amid renewed concerns about new restrictions and lockdowns as a result of the recent surge in coronavirus cases.

The major averages slid firmly into negative territory after lingering near the unchanged line earlier in the day, amid renewed concerns about new restrictions and lockdowns as a result of the recent surge in coronavirus cases. A number of states are imposing new restrictions due to the spike in cases, with New York City Mayor Bill de Blasio announcing that public schools in the city will be closed as of tomorrow. The tighter restrictions come as data from John Hopkins University showed there were nearly 162,000 new coronavirus cases and 1,707 deaths on Tuesday. The daily death toll represents a six-month high.

Concerns about the economic impact of the lockdowns overshadowed more upbeat news regarding the coronavirus vaccine candidate being developed by Pfizer (PFE) and BioNTech (BNTX). Pfizer and BioNTech announced that a final analysis showed that its vaccine candidate was 95% effective against Covid-19. The companies said they planned to apply for emergency use authorization of a coronavirus vaccine within days following clinical trials. Earlier this week, Moderna gave similarly encouraging early data about the vaccine it’s separately developing.

In US economic data

In US economic data, US Housing Starts Surge In October- US housing starts surged up by 4.9% to an annual rate of 1.530 million in October after soaring by 6.3% to an upwardly revised rate of 1.459 million in September, according to a report released by the Commerce Department on Wednesday. With the bigger than expected increase, housing starts reached their highest annual rate since coming in at 1.567 million in February. The spike in housing starts came as single-family starts skyrocketed by 6.4% to a rate of 1.179 million, while the rate for units in buildings with five units or more tumbled by 3.2% to 334,000. Meanwhile, the Commerce Department said building permits came in at an annual rate of 1.545 million in October, virtually unchanged from the revised rate seen in September. Building permits, an indicator of future housing demand, had been expected to rise by 0.5% to a rate of 1.560 million from the 1.553 million originally reported for the previous month.

US Business Inventories Climb By 0.7% In September- US business inventories climbed by 0.7% in September after rising by 0.3% in August, partly reflecting a jump in retail inventories, the Commerce Department released a report on Tuesday. The Commerce Department said retail inventories spiked by 1.7% in October after rising by 0.5% in September. Wholesale inventories also rose by 0.4% in October following a 0.5% increase in September, while manufacturing inventories were unchanged for the second straight month. Meanwhile, the report said business sales increased by 0.6% in October after climbing by 0.9% in the previous month. Retail sales surged up by 1.5% in October following a 1.1% jump in September. Manufacturing and wholesale sales also inched up by 0.3% and 0.1%, respectively. With inventories and sales both rising, the total business inventories/sales ratio in October was unchanged from September at 1.32.


Time                                      :        19/11/2020

Pivot                                     :        1.1858

Technical View                     :        LONG ABOVE 1.1878

Target                                   :        1.1896, 1.1921, 1.1946, 1.1971

Technical View                      :       SHORT BELOW 1.1836

Target                                   :        1.1816, 1.1806, 1.1791, 1.1756


Please enter your comment!
Please enter your name here