Dollar Clinches a Conservative Hike in its Worst Week

Dollar Clinches a Conservative Hike in its Worst Week

The dollar is ready to end today’s session with a hike. However, its remains trading in the red after clinching the worst week in a month.

The USD index tracks the performance of the greenback against the world’s leading currencies. This week it added 0.15% and settled at 89.817.

So far in the week, it descended as much as 1.2% making the period its worst in more than a month.

Compared to its three-year peak recorded in March, it shed off a significant 12.7%. Undermined by successive developments in the stimulus which motivated investors to flee towards risky assets.

Similarly, the successive vaccine rollouts in the United States and other developing nations added weight.

Lastly, the optimistic expectations of the post-Brexit trade deal contributed to the bearish sentiment.

As asserted by a senior currency strategist, the events turned out to be a lethal combination that drove the USD below the critical threshold of 90 points.

Adding on, the trudging but broadening global recovery is turning out to give much leverage to risk-sensitive currencies such as the Aussie and Kiwi.

The same upward trajectory for the Antipodeans is likely to carry on through 2021.

Despite the long-term prospects, the AUD/USD pair edged down in today’s session by 0.12%. This was followed by its counterpart from New Zealand which slashed 0.06%.

In the latest foreign exchange charts, the pairs are trading at 0.7611 and 0.7144 respectively.

Yesterday, the NZ government released an expectation-beating economic growth. The country recorded an impressive quarter-on-quarter hike in its gross domestic product which stood at 14%.

The nation has emerged from the 11% slump recorded during the second quarter and is on the right track for a swift recovery.

 

The Pound Breaches Resistance Level

Meanwhile, the sterling pound fell by 0.24% and settled at %1.3550. Down from its 31-month high recorded in the previous session.

This came after the two parties announced their skepticism of the possibility of the post-separation deal now that they are still far from reaching a concession.

Nevertheless, the forecast for the British currency remains bullish after it breached the $1.35 resistance level. 

With this, a new resistance expectation of $1.37 is eyed by spectators. It could advance further should events turn out to be in the advantage of the bulls.

During the last ten days of trading, the pound’s support level was at $1.32 while the resistance is steady at $1.34.

The focus remains on the result of the negotiations now that the deadline for the agreement nears.

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