Dollar Gains Ground with Growing Risk-off Sentiment

Dollar Gains Ground with Growing Risk-off Sentiment

The dollar regains previous losses recorded in the last five successive sessions as anti-risk sentiment makes an appearance in the market.

The USD Index Futures made a conservative run by 0.09% to 92.472. 

However, this is still below the 93-point support, making it difficult for strategists to announce a consolidating bullish pattern.

In the previous session, the greenback is weighed down by sluggish growth of retail sales which fell short of hitting analysts’ forecast.

Adding to the downward pressure is the growing number of cases in the United States and the absence of a stimulus package to cushion the economy from further damage.

The AUD/USD declined by 0.14% to 0.7295. The pair is weighed down by fresh lockdowns imposed on the Southern part of the state amid new rounds of the outbreak.

Such is quick to eclipse the positive labor data released earlier where employment increased by 178,000 for October.

In New Zealand, the Kiwi followed the downward trend after releasing 0.25% off its court to settle at 0.6907.

In China, the offshore yuan is nearing a 29-month high in overseas trade. Similarly, the USD/CNY pair added 0.11% and trades at 6.5659 in the latest foreign exchange charts.

Across borders, the GBP/USD pair fared lower as the optimistic news on the post-Brexit deal provided strength to the sterling.

Experts in the field noted that the two parties will reach a long-standing before the official end of the transition period happening on December 31.

Recent updates on the market include an announcement from Pfizer and BioNTech claiming that their inoculation might get a nod from American and European regulators by mid-December.

Despite this, risk-off sentiment among investors remain overpowering propelled by growing successive lockdowns in key markets.

USD JPY Pair Nears Support Level

Meanwhile, the USD JPY is yet to hurdle another obstacle as they near the $103-threshold support.

According to foreign exchange strategists, the pair is following a bearish trend based on the latest movements of charts.

Such may pull the currency duo further down to $103.2 and may further run between $103.1 until $101.

Considering the upside scale of patterns, the resistance level plays at $104.3, $105.2, and $106.0. The medium-term outlook remains in the bearish territory.

In current forex updates, the pair declined conservatively by 0.01%, settling at $103.1.

Among the anticipated indicators watched by the market is the US jobless claims due for release later in the day.

Such could dictate the Federal Reserve’s next steps to take amid the worsening situation in the United States.

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