Dollar Erases Gains and Clinches Lower

Dollar Erases Gains and Clinches Lower


The dollar index, which tracks the performance of the United States dollar against a basket of other major currencies with the Euro and British pound having almost 70% of the weight, lost gains and drifted lower to 92.34 again. DXY is holding at its lowest price range since early September. Investors are anticipating the congress's response to the latest impact of coronavirus on the US economy, especially as cases continued to soar significantly. The two political parties will be forced to compromise to support citizens and the economy. The EURUSD edged higher to $1.1890, the GBPUSD rallied to $1.3286, and the NZDUSD advanced to $0.6934.


US stock benchmarks were mixed as the restrictions of movement supported the flow again to stay-at-home stocks. When the vaccine headlines came out, the flow from stocks that did benefit the most from Covid19 to the ones that suffered the most was significant. Following the recent outrageous rise in covid19 cases, stay-at-home stocks are gaining again. The tech-heavy Nasdaq managed to rise to 12012, while the Dow Jones Industrial Average futures declined to 29282, and S&P500 futures were almost steady near 3560.


Precious metals prices extended losses where the price of a gold ounce dipped again to $1853, its lowest level in ten days. Meanwhile, the price of a silver ounce declined below $24, and palladium futures fell to $2275.


Oil prices traded in a tight range awaiting fresh drivers for a breakout. The spreading covid19 is weighing on the oil-demand outlook. However, investors are a bit relaxed that OPEC+ will take the necessary measures to stabilize the market. The West Texas Intermediate rallies were capped by the resistance zone between $42.00-50. The January future is currently trading at $41.80, and Brent Blend January delivery is holding above $44.

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