The Sterling pound fell against the dollar fueled by the upbeat UK Q4 GDP data released in the early London market as the greenback remained largely weak. The GBP/USD currency pair also benefitted from the elevated investor risk appetite that drove riskier currencies and assets higher at the dollar’s expense.
The New Zealand dollar has been trading largely flat today, though it registered losses against some of its major rivals, including the US dollar. The likely reason for low volatility on the Forex market was today’s monetary policy announcement from the Federal Reserve as traders are often reluctant to involve themselves in markets ahead of big events.
The Canadian dollar is struggling for direction on Tuesday as investors comb through the latest economic data and weigh near-term crude oil prices. The loonie has weakened in the last week amid renewed strength in the greenback, but the Canadian dollar is still up 0.72% against its US peer.
The Reserve Bank of Australia made a monetary policy announcement today. While the Australian dollar rose a bit after the central bank announced its decision, the currency continued to move sideways below the opening level afterward. Yet later, the Aussie made a push to the upside, which helped the Australian currency to climb above the opening level against all other most-traded currencies.
The euro started the trading week on a weak footing, falling against many of its most-traded counterparts. The EUR/USD currency pair has been trading about flat. What can traders expect from the EUR/USD pair and the euro in general during the rest of the trading week?
The euro today rallied higher against the dollar fueled by the risk-on investor sentiment and positive macro releases from various European dockets. Janet Yellen’s testimony further boosted the EUR/USD currency pair’s rally as the incoming US Treasury Secretary favours additional spending.
The Japanese yen was weak today, trading either flat or lower versus its most-traded counterparts. The trading session was rather uneventful, with no major news to drive the market. There were several macroeconomic reports released in Japan, but nothing particularly important.
The euro today fell against the resurgent dollar for the second consecutive day as the impasse regarding the EU’s budget weighs down the single currency. The EUR/USD currency pair was also affected by the risk-off market sentiment as investors bought the safe-haven dollar as the second wave of coronavirus infections intensifies.
The Turkish lira is enjoying its best rally in months as the government eased two-year-old currency trading limits, giving the lira a substantial boost. It is also rising against several currency peers as foreign exchange markets bet that the country would embrace a more orthodox monetary policy following a series of noteworthy exits in President Recep Tayyip Erdogan’s government.
The Turkish lira is recovering after crashing to a fresh record low in the middle of the trading week. The lira, which has been one of the worst-performing currencies in 2020, has repeatedly recorded all-time lows. Depleted foreign exchange reserves, slumping economic data, and geopolitical tensions – Ankara is facing pressure on many fronts, and this has weighed on the lira.
