Here is what you need to know on Thursday, August 20:
The greenback saw some demand during US trading hours, later exacerbated by FOMC Meeting’s Minutes. The initial advance lacked a particular catalyst. US policymakers repeated that a “highly accommodative stance of monetary policy likely needed for some time.” Also, policymakers said that economic activity and employment have picked up somewhat in recent months, nothing that anyway remain well below their pre-pandemic levels, while hinted against yield-curve control.
EUR/USD and GBP/USD retreated from yearly highs, and while the slide was quite sharp, is still short of indicating a U-turn in dollar’s negative bias.
Talks between the UK and the EU about their future trade relationship seem stalled, as the Union rejected UK truckers wide-ranging access to Europe. Earlier in the day, the UK PM’s spokesman said that UK negotiators are hopeful a trade deal can be achieved next month. However, issues on fishing rights and access to financial markets remain unsolved.
The number of new coronavirus cases in Europe suggests that a second wave is reaching the Old Continent. Spain reported 3.715 new cases, France 3,776 new infections, while in Germany, the count was up by 1,354. Italy stands behind with 642 while in the UK informed 812.
The OPEC+ Joint Ministerial Monitoring Committee had a video conference. Participants believe that the pace of oil market recovery appeared to be slower than anticipated with growing risks of a prolonged second wave of COVID-19. They also see a tighter gap between supply and demand. Crude oil prices were little affected by the headlines.
Gold prices plummeted with sudden dollar’s demand, easing towards the $1,940 price zone at the end of the US session.
Cryptocurrencies also felt the heat, trimming most of their latest gains. BTC/USD down to 11,650 price zone.
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