Forex Today: US House clears USMCA, Johnson’s Brexit deal to get voted, USD firmer ahead of US data

Here is what you need to know on Friday, December 20:

US House of Representatives overwhelmingly approved US-Mexico-Canada (USMCA) trade agreement.  House vote sent the measure to the Senate. US Senator Sanders said that he will not vote for the USMCA trade deal. The Canadian dollar traded on the back foot, as USD/CAD held the higher ground near the 1.3140 region.

US dollar defended minor bids across its main peers and hovered near multi-day tops, supported by the rally in US Treasury bond yields. Asian equities consolidated near 18-month highs amid slowing volumes heading into the Christmas holiday period.

Japan cabinet approved a record $939 billion budget for FY 2020/21, USD/JPY idled around 109.30. China’s central bank kept its lending rate steady. The Aussie consolidated below 0.6900 throughout Asia. NZD/USD battled the 0.66 handle, pressured by mixed New Zealand fundamentals.

Among the European currencies, EUR/USD kept its tight trading range above 1.1100. Cable attempted a tepid bounce on 1.3000 in the run-up to the UK House of Commons’ voting on the PM Johnson’s Brexit bill, UK Q3 GDP revision.

Gold traded modestly flat around $ 1480. Crude oil was little changed near three-month highs amid falling US crude inventories.

Cryptocurrencies stalled recovery and turned south, with Bitcoin testing $ 7,100 again.