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 euro today traded sideways against the dollar amid multiple rally attempts that were followed by pullbacks as the bulls and bears fought for control. The EUR/USD ended up trading flat driven by the mixed investor sentiment as both the dollar and euro tried to rally unsuccessfully.
The euro today fell against the US dollar after hitting highs last seen in September 2018 yesterday as the greenback sold off. The EUR/USD currency pair was stuck trading in a sideways range slightly lower from its opening price driven by the non-volatile market environment.
The euro today rallied to new 2-month highs as the US dollar extended its losses by falling to fresh 2-month lows amid a risk-on market environment. The EUR/USD currency pair rallied to its daily highs in the American session amid multiple speeches from Fed speakers.
As most other currencies, the Canadian dollar opened sharply lower today due to risk aversion caused by the North Korean nuclear test. Yet after volatile swings, the currency stabilized and did not move far from its opening level.
The US dollar continued its upward movement today as yesterday’s statement of the Federal Reserve continues to force Forex traders to shun risk and to seek safety. The yen outperformed the dollar as a safe currency.
The US dollar declined versus the higher-yielding currencies as the macroeconomic reports suggested that the economic recovery is underway, encouraging the investors to take more risk in seeking profits.
The Japanese yen surged on the concerns that Ireland’s bailout wouldn’t be able to contain the sovereign-debt problems from contaminating other European countries.
The currency market volatility fell to its lowest values since the second quarter of 2001, signaling that the central banks probably won’t interfere into the Forex trading to support the U.S. dollar.
Japanese yen restarted its falling against other world currencies today (even against the dropping dollar) as the risk hungry investors begin to reenter carry trades. While the Nikkei 225 index gained a little more than 1 percent — first rising day after four consecutive losing days, Yen lost more than 1 percent of its value to the high-yielding currencies.
