fbpx

US dollar dips on risk sentiment

US dollar dips on risk sentiment - MarketPulseMarketPulse

image

Home/Brexit/Central banks/FX/Newsfeed

Share 0

The US dollar falls on positive sentiment

The recent US dollar winning streak came to an end overnight as the dollar index fell 0.27% to 90.41. The positive risk tone in Asia today has seen the index ease further by another 0.27% to 90.16. Most of the fall overnight and this morning can be attributed to sterling’s rise on Brexit developments. However, in general, the US dollar is easing across the board versus major currencies, with the Australian dollar and euro rising 0.25%, while the pound has risen 0.53% to 1.3555.

A firm CNY fixing by the PBOC has seen USD/CNY falling 0.15% to 6.5300. That pattern repeats across Asian regional currencies, with the Thai baht, Singapore dollar, Malaysian ringgit and notably, the Korean won all trading between 0.15% and 0.30% higher.

With volumes thinned ahead of the holiday break worldwide, most attention remains firmly on the British pound. The weight of long positioning in sterling has meant that gains have been less exuberant than would have been otherwise expected. Markets are also likely to be holding back until the Prime Minister’s address today, having been led to water so many times over the last four years, or is it five?

Sterling’s recent high at 1.3625 remains its initial target, and GBP/USD should be set for further gains to 1.3800 if the Brexit Christmas Carol plays out as expected. Further gains from there will depend on the agreement’s actual nuts and bolts and its interpretation by markets. Given the thin liquidity conditions over the holiday season, a move above 1.4000 cannot be ruled out.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.

Jeffrey Halley

Latest posts by Jeffrey Halley (see all)

Original author: Jeffrey Halley

Copyright

© MarketPulse

Gold up on soft dollar, oil recovers
Asian equities rise on Brexit optimism
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
23 January 2021
Key risk events today: ECB President Lagarde Speaks. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.79% Weekly close: 1.2170 Weekly perspective:...
23 January 2021
First, a review of last week's events: - EUR/USD. We published a chart seven days ago that clearly showed how the correlation between the S&P500 index and EUR/USD was broken in early January. But now everything is back to normal: the S&P500 c...
23 January 2021
BEIJING, Jan. 23, 2021 /PRNewswire/ -- Huami Corporation ("Huami" or the "Company") (NYSE: HMI), today announced that it will hold its 2020 Annual General Meeting of Shareholders (the "AGM") at Huami Co., Ltd. Building B2, zhongguancun No.1, No.81 Be...
23 January 2021
Market Insights Podcast (Episode 154) - MarketPulseMarketPulse Home/Newsfeed/Podcasts Share 0 Jonny Hart looks back on the week’s business and markets news with OANDA Senior Market Analyst Ed Moya in New York.  This week they discuss the President Bi...
23 January 2021
US Close –Stocks pare losses after record PMIs and housing data, FX, Oil softer post EIA, Gold clawing back, and Bitcoin rebounds - MarketPulseMarketPulse Home/Commodities/Crypto/FX/Indices/Metals/Newsfeed/Oil/Treasuries Share 0 US stocks pared the e...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.