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Daily market commentary: The US dollar continues to lose ground



FOREX

The US dollar continues to lose ground to other major currencies during early Friday trading, as the markets price in the changing political landscape in Washington. It is now beyond any reasonable doubt that President-elect Joe Biden will be sworn-in on January 20. The new administration has ambitious stimulus plans for the US economy and the first year of the incoming President’s mandate is likely to be marked by a coordination of market-friendly fiscal and monetary stimulus, which is likely to keep the greenback under pressure.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

The breakdown of the support level of $1,850 has damaged the medium-term trend for gold, opening space for further correction. Positive news regarding Covid vaccines has pushed investors to bet on riskier assets, temporarily reducing their exposure to gold.

With US markets working shorter hours today due to the Thanksgiving long weekend, there are good chances of seeing a relatively quiet trading session with the bullion price moving laterally in the range of the last few days between $1,800 and $1,810. A decline below $1,800 could trigger new selling of the yellow metal, although any return to risk-off strategy together with a weaker dollar would boost gold. For the time being the price is steady, just a few dollars above the four-month low.

Carlo Alberto De Casa – Chief analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: The US dollar continues to lose ground

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