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Forex Market Jumps as Pound and Euro Strengthen Further

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Forex Market Jumps as Pound and Euro Strengthen Further
  •        GBP Pushed Higher by Imminent Brexit Deal
  •        Euro Trading High on Market Mood
  •        US Employment Numbers to Come Later

There were big movements higher for both the Euro and Pound pairs against the Dollar coming to the end of the trading week. The EUR/USD finds itself at its highest point since 2018. This almost three-year high coming on continued market positivity and renewed expectation of a US stimulus package. The Pound was moving higher as a long-awaited Brexit trade deal appeared to edge closer. Meanwhile, many in the forex market are awaiting the release of US nonfarm payroll numbers that could influence the day’s sentiment.

Brexit Deal Within Sight as Negotiations Intensify

Sterling remains buoyed today near 1.35 against the Dollar and marking significant recent highs. This is despite the fact that the opinion emerging from the latest UK-EU talks is not one of positivity. There seems to be a general consensus that talks did not progress well yet the Pound continues to rally.

As the day for the UK to leave the EU draws ever closer though, hopes have been raised that a trade deal can be quickly agreed over this coming weekend. This feeling has been boosted by the fact UK news report Prime Minister Boris Johnson is due to meet French leader Emmanuel Macron over the weekend. Several observers point to the Monday deadline set by the UK and see this last-ditch meeting as an opportunity for both sides to get a deal over the line.

Euro Continues Strong Run to Record Highs

The EUR/USD has continued rolling higher supported by a seemingly everlasting positive risk sentiment in the US as vaccine hopes continue to drive markets even though COVID-19 cases are also spiking day after day. The potential vaccine rollout alongside new hopes of a US Stimulus package has kept those forex trading the pair in positive mindsets.

Approaching 1.22 the pair finds itself at a 32-month high. Factors such as Dollar weakness and both vaccine and stimulus hopes have certainly helped the pair, though positive news domestically has contributed too. German factory orders for October came in ahead of expectations with a 2.9% increase month on month. Jobs figures from the US will be the latest news of focus for forex brokers and traders alike in Europe to see if the highs can continue.

US Unemployment Rate Drop Predicted

US nonfarm payroll numbers are due later today. Analysts forecast the figures will show that the US economy added 440,000 jobs in the previous month compared with more than 600,000 in October. Despite the slowdown in new jobs the unemployment rate is expected to drop to 6.7%.

Markets have taken this news positively and futures trading on the major US indexes is up across the board. A beat on these expectations could see another very strong end to a week that has already been record-setting in many markets. The Labor Department already reported a Pandemic period low on weekly unemployment numbers yesterday.

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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