Sterling gives up six-week high on profit-taking
Sterling fell in European trade away from six-week highs against dollar on profit-taking, before talks are resumed between UK and EU on Brexit.
GBP/USD fell 0.25% to 1.3116, after closing up 1.6% yesterday, the largest gain since March 27.
The largest profit in seven months came as the dollar plunges while UK-EU trade talks take a more positive turn.
The dollar index rose 0.2% on Thursday, the first profit in five days away from seven-week lows at 92.47.
The Guardian reported a resumption of UK-EU trade talks on Thursday and through the weekend to reach a final deal in the last few weeks of the transition period.
Both sides hope for compromise before transition ends on December 31.
USD/JPY tilted lower in Asian trade off October 20 highs amid a lack of data from Japan and ahead of some US data. As of 06:59 GMT, USD/JPY fell 0.05% to 103.77, with an intraday low at 103.72. From the US, unemployment claims for the week ending November 13 are expected down two thousand to 707 thousand, while the Philly manufacturing index is expected down to 22 from 32.3. US existing home sales are expected down 1.2% to 6.45 million units, while the CB leading index is expected up 0.7%.
The Japanese yen fell on Tuesday, despite a weaker US dollar that has eased its pressure on commodities, metals and other currencies. The Japanese yen's safety status came under pressure today, as investors turned to precious metals as safe havens, amid uncertainty and anticipation of the US presidential election debate. A recent study showed that since 1997, 76% of the time the Japanese yen rises when S&P500 index drops 5%. At the peak of the coronavirus crisis in mid-March, when US stocks crashed 9%, the yen did not take advantage from that and did not rise as a safe haven, but fell too. As of 21:01 GMT, USD/JPY fell 0.2% to 105.6, after hitting a day high of 105.7, and a low of 105.3.
The US dollar rose on Monday, erasing its early losses, following the release of positive economic data and news about AstraZeneca's Covid vaccine. The US manufacturing PMI rose to 56.7 points in October from 53.4 points in September. The US services PMI rose to 57.7 in October, beating analyst's forecasts of 55.8 points. AstraZeneca said that its vaccine, developed in collaboration with the University of Oxford, may reach 90% efficacy in preventing Covid-19. The British firm added that it will be able to provide 200 million doses of the vaccine by the end of this year. The dollar index rose against a basket of currencies by 0.1% to 92.5 points as of 18:31 GMT, after it hit a high of 92.8 and a low of 92.02.