Forex Today: US Senate’s HK bill weighs on sentiment, Corbyn crashing the pound, Fed minutes awaits

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Here is what you need to know on Wednesday, November 20:

Trade: The US Senate has passed a law supporting pro-Democracy protests in Hong Kong, aggravating relations with China and weighing on sentiment. Beijing has summoned the US ambassador and called on the US to refrain from interfering. Commodity currencies are on the back foot. On the other hand, US Commerce Secretary Wilbur Ross has expressed optimism in getting a deal done with China. 

UK Elections: Prime Minister Boris Johnson and Jeremy Corbyn have clashed in a televised debate which ended in a draw according to a snap poll following the event. GBP/USD has been falling toward 1.29 as Corbyn’s satisfactory performance in comparison to his low approval rating is seen as helping him. Recent surveys have shown Johnson’s Conservatives in the lead, markets preferred outcome. Fresh post-debate polls will be of interest.

Fed: The Federal Reserve’s meeting minutes are set to shed to light on the late October meeting when the bank cut rates but signaled a pause. Markets are looking for hints about the hawk-dove divide within the world’s most powerful central bank. See FOMC Minutes Preview: Reinforcing the rate pause

EUR/USD is consolidating below 1.10 as members of the European Central Bank continue speaking out. Phillip Lane, the bank’s main economist, reiterated the ECB’s view that no recession is on the horizon

Canadian inflation figures are due out today and set to show an increase in monthly prices and stable core inflation.

Cryptocurrencies are seeking to find a bottom after long days of declines. Bitcoin has bounced off $8,000. See Bitcoin Falls to Fresh Lows Amid Google Push into Financial Services.

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