23/11/2020
Forex trading reminder on November 23
On November 20, the U.S. dollar performed steadily against most G-10 currencies. The U.S. dollar index rebounded from a recent two-week low despite the late weakness in U.S. stocks. The U.S. dollar has risen against major currencies such as the euro and the yen. Traders are consolidating their positions under the competitive force of pulling the U.S. dollar in different directions. On the one hand, the number of new cases has soared, and on the other hand, there is positive news about vaccines. But the US dollar fell against the Australian dollar, New Zealand dollar and British pound. Japan’s financial markets are closed on Monday for public holidays, and the US is closed on Thanksgiving on Thursday.
On Friday (November 20), the U.S. dollar performed steadily against most G-10 currencies . The U.S. dollar index rebounded from a recent two-week low despite the late weakness in U.S. stocks . The U.S. dollar has risen against major currencies such as the euro and the yen . Traders are consolidating their positions under the competitive force of pulling the U.S. dollar in different directions. On the one hand, the number of new cases has soared, and on the other hand, there is positive news about vaccines. But the US dollar fell against the Australian dollar , New Zealand dollar and British pound . The U.S. dollar index rose 0.12% to 92.40, fluctuating between an increase of 0.2% and a decrease of 0.1% during the session. It is expected to fall by 0.36% throughout the week due to the good news of the vaccine; the yields of U.S. Treasuries were mixed, with the 10-year Treasury yield at 0.83 %nearby. The start of the week was unfavorable for the U.S. dollar and positive news came from the new crown vaccine. Since then, the market has fluctuated due to the number of new cases and vaccine news. Capital Economics Jonathan Petersen said: “We believe that we are in the early stages of the global economy and trade recovering from the impact of the epidemic, which will further drag the dollar and support the euro.” US Treasury Secretary Mnuchin said on Friday . Defended the Fed ’s decision to end several key pandemic loan programs on December 31 , he said Congress should use the money to provide aid grants to small businesses. Later on Thursday, after the news came out, the dollar rose briefly overnight.
Monex Europe said in a research note: "This decision came as the use of most loan programs did not exceed the size of the Ministry of Finance promised to give support, suggesting that market conditions sufficient to ensure that these plans beam on time."
Euro It fell 0.15% against the US dollar to US$ 1.1857, but it rose slightly on the weekly basis. Action Economics pointed out that before the close of the London session, there was some selling of the euro before the weekend. The agency stated in its daily blog post: "Despite the general decline in the popularity of the U.S. dollar, the EU and the U.K. lack progress in the Brexit trade negotiations, which is likely to limit the euro." The
pound rose 0.12% to 1.3277 against the U.S. dollar , up 0.67 over the week. %, rising for the third consecutive week; Vassili Serebriakov, foreign exchange and macro strategist at UBS Securities , said that the Brexit agreement is expected, and the pound sentiment has turned optimistic, especially this week; I think the market is gradually preparing for more positive Brexit news ; He said that the short-term market ruling out the possibility of negative interest rates in the UK is also good for the pound. Osborne expects the pound to be constrained below the 1.33 area against the dollar until the Brexit agreement is stable.
The U.S. dollar rose 0.12% to 103.86 against the yen . It rose 0.2% during the session; it fell 0.74% for the week. The U.S. dollar rose 0.17% to 1.3095 against the Canadian dollar , wiping out the 0.3% decline. The currency pair fell 0.33% for the week. Crude oil and better-than-expected retail sales supported the currency pair in early New York trading. Osborne wrote in a report on Friday afternoon that the risk background is still the current “key driving force” for the Canadian dollar. The
New Zealand dollar is the G-10 currency with the largest increase, rising 0.20%; it rose 1.23% throughout the week, the first consecutive year. Three weeks higher; aided by a positive risk appetite, the New Zealand dollar hit a two-year high of $0.6951 against the U.S. dollar.The Australian dollar rose 0.5% against the US dollar , and then the gain narrowed to 0.18%; a stronger renminbi helped lift the Australian dollar. Scotiabank’s Shaun Osborne report stated that the optimism of vaccines to boost the global economy next year is good for commodities , although the coming weeks may be tough.
