Euro rises despite German lockdown, metals drop amid weak dollar

14/12/2020

The euro continued in its bullish tracks and the  EURUSD pair was trading nearly half a percent stronger during the morning session on Monday, last seen at around 1.2150.

Germany announced another hard lockdown, which will begin on Wednesday and continue throughout Christmas and New Year's eve. Many Germans are furious and protests against this measure are rising. Nevertheless, the German DAX index was trading notably stronger today. 

From other news, UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed over the weekend to go the “extra mile,” prolonging the already many times prolonged Brexit deadline. This has become a neverending story already, but sterling loved the news and was up 1.2% in the morning. 

Elsewhere, it looks like another round of fiscal stimulus might be finally agreed on during this week, which was positive news for stocks - US indices opened with a bullish gap. 

Despite all of this information, precious metals plunged again, with gold down nearly half a percent, trading at around 1,830 USD. Silver was seen staying below 24 USD. MEdium and short-term trends remain bearish for now. It looks like the correlation between metals and USD has reversed - the weaker the USD, the lower the metals go.. Strange.
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