Forex Today: It’s all about Brexit

Here is what you need to know on Tuesday, December 8:

The world gyrated around Brexit. The dollar benefited from fears during European trading hours, but later give up a good bunch of its early gains. The GBP/USD pair plunged to 1.3223 after UK PM Boris Johnson menaced to left the negotiations table, but later recovered to 1.3403, on an EU UK joint statement indicating that a deal hasn’t been reached yet, but adding that talks will continue in Brussels this Tuesday. Critical issues remain unsolved, and in fact, divisions over fisheries in negotiation have deepened, according to Reuters.0

The EUR/USD pair is holding above the 1.2100 level, but a lower low and a lower high daily basis, suggest that the pair could come under additional selling pressure in the upcoming sessions.

The Australian dollar and the CAD held near their recent muti-month highs against the greenback, while USD/JPY remains within familiar levels.

Most global indexes closed in the red, as fears were also fueled by mounting tensions between the US and China, and back and forth surrounding a US stimulus package.

The coronavirus pandemic continues to extend its claws in the US. The country continues to report record new daily contagions, which added to the dismal mood. US Treasury yields gave back their latest gains.

Gold prices got to bounce on a risk-averse environment coupled with the broad dollar’s weakness. The bright metal settled at $1,860 a troy ounce.  

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