EUR/USD looks set to end the holiday-shortened trading week on a positive note, with the US dollar trading under pressure across the board. The currency pair is currently hovering near 1.1925, representing a 0.58% gain on the week. Daily, the pair is up just 0.10%. The upbeat China data released in Asia looks to be drawing offers for the US dollar. In a sign of impressive recovery from coronavirus slowdown, China's industrial profits rose for the sixth straight month in October, and at the fastest rate in nine years. However, the upside is likely being capped by doubts over drugmaker AstraZeneca's coronavirus vaccine and losses in the US stock futures.
The USD/JPY pair remained depressed through the Asian session and dropped to four-day lows, around the 103.90 region, albeit recovered few pips thereafter. The pair extended this week's retracement slide from the 104.75 region and witnessed some follow-through selling for the second consecutive session on Friday. The downfall also marked the third day of a negative move in the previous four and was sponsored by the prevalent selling bias surrounding the US dollar. Concerns about the economic fallout from the imposition of new COVID-19 restrictions in several US states resurfaced after an unexpected rise in the US Initial Weekly Jobless Claims. This, in turn, revived hopes for additional US fiscal stimulus from the incoming Biden administrations and continued weighing on the buck.
The GBP/USD pair held on to its modest intraday gains through the early European session and was seen hovering near the top end of its daily range, around the 1.3370 region.
Following the previous day's good two-way price moves, the pair caught some fresh bids on the last day of the week and seemed rather unaffected by Brexit uncertainties. In the latest Brexit-related headlines, the EU's chief Brexit negotiator, Michel Barmier reportedly told envoys that he cannot say if a deal is possible at this stage. It is worth reporting that both sides are yet to find a compromise on key sticking points – the so-called level playing field, fisheries and state-aid rules. Investors, however, remained optimistic about the possibility of a last-minute Brexit, which, in turn, underpinned the British pound an\d extended some support to the GBP/USD pair.