The US Dollar Will End the Week Weak

The US Dollar Will End the Week Weak

After successive setbacks since Monday, the dollar is poised to end the week with losses.

The world’s reserve currency continues to bear the downward pressure created by the growing risk sentiment among investors.

The USD index, which trails the performance of the greenback compared to other entities in the basket of currencies, shed off 0.03% to settle at 91.983. 

It fell to 91.84 at one point in the overnight trading session.

Currently, it hovers to reach the 91 support level and nears its lowest settlement in the last three months.

Last week’s figure remained steady at the 93-point threshold but has since eroded due to successive events that went against its advantage.

Analysts project that there may be no significant happenings in today’s trading session that could stir no bulls nor bears on their seats.

The market remains quiet as the United States is still on a holiday high from the Thanksgiving celebration on Thursday.

While there is no catalyst to propel significant changes, the currency remains pressured from the month-end selling in the final days of November.

In Asia, the USD JPY pair fell by 0.23% to 104.02 in the latest foreign exchange charts. 

On the other hand, the renminbi is slowly making a comeback after successive setbacks during the start of the week. It settled for 0.04% to 6.5770.

Across the Pacific, both the risk-sensitive Aussie and Kiwi benefits from the change in investor choices, making hikes during the session.

With the greenback’s descent from power, riskier assets are benefiting from the volatility.

The euro managed to make advances before steadying at almost flat against the USD. However, it is still near to achieving its highest in two months after trading at $1.1905.

The Pound is the Winner with Positive Brexit Talks

While others are making their victory mantra along with the greenback’s weakness, the biggest gainer remains the sterling pound.

The GBP nears to notch its highest level in three months after settling at $1.3349. 

It finally touched its highest for the week at $1.3399 on Thursday, along with positive Brexit developments.

According to recent reports, the two parties have now made significant advances towards settling their differences.

In a forecast, industry experts noted that the announcement of the post-separation trade deal might enter into force within a few weeks. 

Consequently, the ratification might come before the Christmas holiday, weeks ahead of the deadline scheduled at the end of the year.

This could propel the pound further to reach record-highs.

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