Market Sentiment Supports US Dollar Against Other Majors

Market Sentiment Supports US Dollar Against Other Majors

Posted Thursday, November 12, 2020 by
Arslan Butt • 1 min read

The US dollar is trading steady, maintaining its strength against its major rivals as investor optimism surrounding the COVID-19 vaccine eased, weakening riskier currencies. At the time of writing, the US dollar index DXY is trading around 93.02, close to a one-week high.

Meanwhile, the dollar is also holding strong against safe haven currencies like the CHF and the JPY. The Japanese yen has weakened by around 2% from its eight-month high against the greenback that it had touched last week on news about Biden’s victory in the US presidential election.

The common currency Euro has also dipped lower against the US dollar in the previous session after the ECB confirmed its continued efforts towards bond purchases and cheaper loans to prop up the Eurozone economy in the wake of the coronavirus crisis. The GBP, which had gained some strength recently, has also slid lower as Brexit talks continue with no progress made so far.

While the AUD is trading steady against the US dollar, the NZD has made some gains over a recent Bloomberg report about how better economic performance in New Zealand convinced the RBNZ to stay away from negative interest rates. This also helped NZ bond yields climb higher, lending further support to the commodity currency.

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