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Daily market commentary: The US dollar is losing ground to other major currencies



FOREX

The US dollar is losing ground to other major currencies during early Wednesday trading, with the index that measures the performance of the greenback reaching the lowest point since April 2018. Investors are walking away from the safe-haven dollar and embracing riskier assets, as hope of better days ahead continue to grow. The renewed optimism is driven by the prospect of more COVID vaccines being approved for use and a more stable political environment in Washington supporting hopes of an economic stimulus package being agreed.

Ricardo Evangelista – Senior Analyst, ActivTrades

daily market analysis

GOLD

Gold is extending its gain but, more crucially, has once again jumped above the resistance zone of $1,850. A weak greenback, with EUR/USD trying to force the 1.22 barrier and the Dollar Index falling to 90, is helping gold in its recovery while the short-term scenario is regaining momentum. The first target for bullion is the key zone of $1,872-$1,875, with the next resistance placed at $1,900, which is the “post vaccine” highest level for gold.

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 is losing ground to other major currencies

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