Following the sideways action seen earlier in the week, EUR/USD gathered bullish momentum and registered strong daily gains on Wednesday. After touching its highest level since July 28 near 1.1700, the pair seems to have entered a consolidation phase above 1.1650 in the European session on Thursday.
The EUR/USD pair extended its weekly advance to 1.1698, retreating from the level ahead of Wall Street’s opening. The US Dollar (USD) fell throughout the first half of the day amid United States (US) President Donald Trump threatening fresh tariffs left and right.
GBP/USD holds its ground and trades above 1.3350 after posting strong gains on Wednesday. Investors stay on the sidelines while waiting for the Bank of England (BoE) to announce monetary policy decisions.
The European Central Bank recently released its monetary policy meeting minutes, showing that the bank’s policymakers supported the decision to continue with an accommodative monetary policy stance until March 2022.
According to recently released electoral data, the Democratic Party will likely grab the two Georgia Senate seats that were in dispute, giving the party a trifecta for the first time since 2009.
Bank of England Governor Andrew Bailey said recently that the latest surge in the number of COVID-19 infections has put the British economy in shambles, delaying the country’s recovery.