Forex Today: Dollar plummets heading into year-end

FXStreet Team FXStreet

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.

Breaking: Bitcoin price hits new all-time high at $28,900

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FXStreet Team

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EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.