The US dollar is struggling to find direction in overnight trading as the Georgia runoff elections go down to the wire. With control of the US Senate in the balance, financial markets have been paying close attention to the electoral outcome of the race that is critical for both parties. The result could have a considerable impact on fiscal policy moving forward.
The US dollar‘s implosion has extended into 2021, with the greenback falling against many of its currency rivals to kick off the first trading week of the new year. After suffering its first annual drop since 2017, the buck may expand its losses this year.
Today, the euro fell against the dollar on the last day of 2020 reversing a 3-day winning streak as traders took profit on their bullish positions amid thin trading conditions. The EUR/USD is still on track to close the year up 9% having printed a yearly high of 1.2310 last hit in April 2018 boosted by the weak dollar and the upbeat investor sentiment.
The Sterling pound today rallied higher against the dollar boosted by the UK Parliament’s vote to implement the post-Brexit trade deal agreed with the EU. The GBP/USD currency pair’s gains were limited by the rising coronavirus cases driven by the virus’s more virulent strain and new lockdown measures.
Today, the euro rallied against the dollar boosted by the risk-on market sentiment as global equities rallied just two days to the end of 2020. Investors remained bullish on the markets boosted by the US’s positive stimulus news, where lawmakers almost approved $2,000 stimulus checks.
The Canadian dollar is adding to its 2020 gain against its US peer on Tuesday, driven by rising crude oil prices and a greater risk appetite in the broader financial markets. The loonie has stabilized for the last several months, with much of its rally occurring since September. Could the loonie ignite a significant rally next year?
The US dollar is showing some weakness to start another holiday-shortened trading week as investors’ risk appetite increased on President Donald Trump signing the coronavirus relief and government spending packages. Despite hesitation from Trump over the last week, he signed the legislation into law, giving the broader financial markets some gains in the final few sessions of 2020.
The US dollar is ending its winning streak midweek amid renewed optimism in the broader financial markets. Despite concerns over a new strain of the coronavirus that appears to be more infectious, the investors were optimistic over initial jobless claims declining to their lowest levels in three weeks. But as long as the COVID-19 vaccines prove effective, traders will remain bullish on stocks, which is bad news for the dollar.
The US dollar is staging a rally to kick off the trading week, buoyed by investors pouring into the traditional safe-haven asset as global financial markets plummeted. Despite the US government agreeing to a nearly $1 trillion coronavirus stimulus and relief package, traders were more focused on news of a new COVID-19 strain that is starting to shut down Great Britain and other parts of Europe.
The Canadian dollar today continued to lose ground against its US neighbour driven by the risk-off market sentiment, which favoured the safe-haven greenback. The USD/CAD currency pair rallied higher reversing yesterday’s losses as investors flocked ignored rising oil prices, causing the commodity-linked loonie to fall.
