fbpx

The US dollar falls in Asia

The US dollar falls in Asia - MarketPulseMarketPulse

image

Home/Brexit/COVID-19/FX/News events/Newsfeed/US election

Share 0

G-10 currencies rise as US dollar dips

The global recovery buy everything trade didn’t fully impact Asian stock markets today, but it was notable in forex markets. Asian currency traders spent the day rotating out of US dollars and into other G-10 and regional currencies. That pushed the dollar index 0.30% lower to 90.06. The dollar index has now traced out a series of lower daily highs over the past week, since spiking to 91.00. A failure of support at 89.70 should confirm the next structural move lower in the US dollar is starting. We may need to wait until the Georgia primaries next week, on January the 5th, have passed.

Both EUR/USD and GBP/USD have risen 0.30% to 1.2250 and 1.3490 respectively today. EUR/USD is nearing resistance at 1.2270, targeting 1.2400 initially. Resistance for sterling is more distant at 1.3625. Brexit and Covid-19 concerns, as well as a market massively long are combining to cap gains. If the start of Brexit passes without incident early next week, sterling is poised to restart its uptrend. The imminent approval of the Astra/Zeneca vaccine by the UK government should underpin and move lower.

Asian currencies have resumed their advances versus the US dollar, with the Thai baht, Singapore dollar and Indian rupee climbing 0.30% today. The Philippine peso, Chinese yuan and Malaysian ringitt have held steady. The pro-cyclical Australian and New Zealand dollars have risen 0.25% and 0.35% respectively to 0.7600 and 0.7125. Both are nearing their December highs and look set for higher levels into the end of the week.

Although both liquidity and volumes are much reduced on currency markets this week, the US dollar fall has been a steady one. Stimulus and the global recovery themes are trumping concerns elsewhere, and the greenback continues to look like a sell on any rally.

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

Oil range trades, gold rises slightly
Asian equities have a mixed day
 

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

 
     
 

Broker Search

Latest Spot Rate

 
27 January 2021
US data, Italian politics - MarketPulseMarketPulse Home/Central banks/COVID-19/News events/Newsfeed/Treasuries Share 0 Markets expect dovish signal from Fed The Fed’s first policy meeting of the year should be a dovish affirmation that signals they a...
27 January 2021
Earnings galore! - MarketPulseMarketPulse Home/COVID-19/Earnings season/News events/Newsfeed Share 0 Tech earning  in spotlight Today is the calm before a tech earnings storm and an FOMC policy decision that attempts to avoid any communication mistak...
27 January 2021
Japanese yen - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed Share 0 The Japanese yen continues to range-trade early in the week. Currently, USD/JPY is trading at 103.67, down 0.06% on the day. BoJ minutes note concern ov...
27 January 2021
HONG KONG, Jan. 27, 2021 /PRNewswire/ -- At a pivotal point in China-US relations, in the midst of COVID-19, and days following the inauguration of President Joe Biden, the United States and China are facing profound changes in their relationship and...
26 January 2021
Australian inflation, FOMC eyed - MarketPulseMarketPulse Home/Central banks/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has posted modest gains in the Tuesday session. Currently, AUD/USD is trading at 0.7729, up 0.21% on ...
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.