Get 40% Off
😲 Missed the +20.8% surge in our stock strategy last month? Not again! Get premium insightsGet 40% Off

FOREX-Dollar stands tall despite strong Chinese data; euro struggles

Published 18/01/2021, 09:34
Updated 18/01/2021, 09:36
© Reuters.

© Reuters.

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Saikat Chatterjee
LONDON, Jan 18 (Reuters) - The U.S. dollar held firm at a
four-week high against its rivals on Monday as an undercurrent
of risk aversion swept through currency markets in the backdrop
of weak U.S. economic data, knocking the Australian dollar and
the euro lower.
With U.S. markets shut for a holiday on Monday and Joe Biden
set to be inaugurated as the next U.S. President on Wednesday,
major currencies remained within well-worn ranges expecting some
volatility later in the week.
After a dollar selloff last year, the opening weeks of 2021
has seen a reversal of fortunes with a broad dollar basket
rising nearly 2% so far this year thanks to a broad-based rise
in U.S. Treasury yields, though analysts remain wary about the
short-term outlook.
"History suggests a strong seasonal pattern that points to
the potential for further near-term strength but this seasonal
bias might prove less forceful this year given the broad macro
backdrop remains consistent with continued optimism and support
for risky assets," MUFG strategists said.
The euro EUR=EBS dipped to a six-week low of $1.2066. The
Antipodeans were soft against the greenback with the Aussie
AUD=D3 hitting a one-week trough of $0.7679, while the kiwi
NZD=D3 at a three-week low of $0.7117. AUD/
Better-than-expected Chinese economic data headed off
further weakness among riskier currencies, but was not enough to
shift currency traders' mood decisively. The mood soured after Friday's data showed U.S. retail sales
fell for a third straight month in December, stoking worries
that the recovery is running into trouble as health authorities
warned that the worst of the latest COVID-19 wave might be yet
to come. Europe is also facing surging cases and an Italian
government that must survive crucial votes in parliament on
Monday and Tuesday in order to cling to power is also making
some traders nervous.
The dollar index steadied after touching a one-month high
and last traded at 90.857, its highest level since Dec. 21.



<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
FX market positions https://tmsnrt.rs/3iumAi7
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.