Forex Today: Dollar plummets heading into year-end
|Here is what you need to know on Thursday, December 31:
The dollar remained under selling pressure. AUD, EUR, and CAD reached fresh year’s highs against the battered greenback, although the shared currency retreated ahead of the close. Commodity-linked currencies are the strongest, helped by the positive performance of Wall Street, as US indexes flirted with record highs.
The GBP/USD pair also advanced, despite mixed news coming from the UK. The House of Commons passed the post-Brexit deal, while Lords will likely pass it during the Asian session.
Also, the government approved the AstraZeneca covid vaccine for emergency use. The country reported over 50K new cases and over 1,000 deaths in the last 24 hours. Coronavirus cases are on the rise globally, but vaccine news are partially overshadowing concerns. The UK announced further restrictive measures to contain the spread.
US Republican Senator Mitch McConnell blocked a move by colleague Bernie Sanders to allow a vote on increasing stimulus checks from $600 to $2,000, adding pressure on the American currency. US Treasury Secretary Steve Mnuchin announced that direct payments of $ 600 would be out as soon as this week.
Gold prices flirted with $1,900 a troy ounce amid the broad dollar’s weakness. The commodity finished the day with gains in the 1,890 price zone.
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