The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.
The USD/JPY pair remained lifeless on Friday, ending a third consecutive day little changed around 103.80. Japan has discovered a new covid strain, different from the UK and South African ones. USD/JPY is technically neutral but keeps developing below a long-term descendant trend line.
The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.
Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817.