Greenback down, with improved danger sentiment for weekly losses
From Gina Lee
Investing.com – The dollar fell in Asia on Friday morning and held steady amid small market moves. However, weekly losses can be expected as the improved risk appetite continues to exert pressure.
The greenback versus a basket of other currencies fell 0.03% to 91.983 by 9.49 p.m. (1:49 p.m. GMT), hovering near a three-month low seen overnight.
The pair fell 0.23% to 104.02.
The pair fell 0.01% to 0.7360 after hitting nearly three-month highs on Thursday. Across the Tasman Sea, the pair rose 0.11% to 0.7013.
The pair was up 0.04% to 6.5770.
The pair was up 0.03% to 1.3359. The pound also hit a nearly three-month high on Thursday. Investors expect progress in the Brexit talks between the UK and the European Union (EU). EU negotiator Michel Barnier is due to speak to some EU fisheries ministers later that day to review the current state of the trade discussions.
Overall volume and movement were small as the US market was closed for Thanksgiving.
“Today will be another quiet day, with almost no catalyst to move the market. However, the dollar is largely under pressure when it comes to month-end sales. ” Barclays (LON 🙂 Shinichiro Kadota, senior strategist, told Reuters.
Optimism about several COVID-19 vaccine developers, including Pfizer Inc (NYSE 🙂 and Modern Inc (NASDAQ :), which reported positive results for its offerings for the past two weeks, put pressure on the dollar as investors sought riskier assets. The trend was also fueled by the beginning of a transition from the administration of incumbent President Donald Trump to that of President-elect Joe Biden.
Although Barclays Kadota saw the dollar remain under pressure in the short term as vaccine hopes persisted, market expectations see it solidify in the medium term.
“When you look at the recovery in the economies in the July quarter, the US grew and rebounded strongly. In a scenario where vaccines gradually become available over the next year and economies go back to normal, the US is likely to be one of the most resilient among developed countries. And I think that will create a dollar-friendly environment, ”he added.
Across the Atlantic, the European Central Bank’s (ECB) chief economist Philip Lane and the minutes of the ECB’s October meeting confirmed the expected announcement of stimulus measures when the central bank meets in December.
The minutes showed that policymakers agreed that complacency is not an option as Europe continues to grapple through a second wave of COVID-19 cases and prepare for further stimulus measures.
Lane also warned that tolerating a “prolonged period of even lower inflation” would hurt consumption and investment and cement expectations for low price growth in the long run.
The euro barely moved against the dollar but hit a high of more than two months on Thursday after the minutes were released.
Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading loss you may incur as a result of using this information.
Fusion Media or anyone involved with Fusion Media assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts and buy / sell signals. Please be fully informed about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.