Forex Today: US Dollar gives up as Wall Street advances
What you need to take care of on Friday, December 30:
The US Dollar fell on Thursday, with the decline exacerbated by thin market conditions. Sentiment led the way throughout the day, with Chinese headlines triggering different market reactions. On Wednesday, financial markets were on alert after Italy reported that roughly 50% of the passengers of two flights arriving in Milan on Wednesday tested positive for COVID-19, and several western nations rushed to impose control on Chinese travelers, fearing the spread of a new strain. However, mid-European morning Italy reported they found no new covid variants in the aforementioned tests.
The mood improved ahead of the US opening, with Wall Street posting substantial gains. Nevertheless, growth and inflation concerns remain in the background. US Treasury yields were up at the shorter end of the curve, while the 10-year note yield shed 4 bps.
The EUR/USD pair peaked at 1.0689, holding on to gains ahead of the Asian opening. GBP/USD hovers around 1.2060, with Pound gains limited amid strikes going on in the United Kingdom. The 1,000 members of the Public and Commercial Services Union (PCS) are striking for four days until New Year’s Eve.
Commodity-linked currencies advanced vs their American rival. AUD/USD trades in teh 0.6780 price zone, while USD/CAD is down to 1.3540.
The Japanese yen appreciated amid the broad US Dollar weakness and news that the Bank of Japan conducted two unplanned bond purchase operations.
Spot gold edged marginally higher and finished the day at around %1,816 a troy ounce. Crude oil price weakened at the beginning of the day but trimmed most of its losses ahead of the close. WTI trades at around $78.30 a barrel
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
