US Dollar Flat after Sinking to 2018 Low

US Dollar Flat after Sinking to 2018 Low

The US Dollar continues to receive the heavy blow brought by the successive developments in vaccination throughout developed countries.

The United States is the latest to join the bunch after its first administration of inoculation earlier in the day. Healthcare frontline workers were the first to receive the shot.

The greenback sunk to its lowest since April 2018 in Monday’s trading session after steadying at 90.419.

The USD index tracks the performance of the world’s reserve currency against other entities in the basket. This week it is trading largely flat at 90.688.

Investors are currently closely monitoring updates on the Federal Reserve’s policy-setting meeting. The meeting is scheduled to take place later and will be concluded tomorrow.

Traders expect that the central bank would increase its bond-buying scheme. The country meanwhile, still witnesses a steady increase in the daily number of infections.

The United States still leads the nations with the most number of coronavirus cases with a high hospitalization and death rate.

With the weakening greenback, the USD/JPY pair fell by 0.1% to 104.06. The Aussie slashed 0.2% to 0.7523 as risk-off sentiment begins to slowly eclipse the former norm.

This came as a continued rise in Covid-19 cases moves faster than the administration of the vaccine.

Nevertheless, the pair still settled at a considerable rate after touching its highest since June in 2018 to 0.7578.

The Australian government is ready to release both its manufacturing and services Purchasing Managers’ Index. It is likely to remain on the expansionary track for November.

Last week, the AUD managed to clinch some 1.4% gains last week which is considered as its sixth consecutive week of the hike, benefiting from the risk-on sentiment in the market.

 

The Pound Benefits from Brexit Hopes

The New Zealand dollar slashed 0.1% in today’s trading session and steadied at 70.71. The Kiwi also ended yesterday’s session at a multi-year high, which is the highest settlement since April 2018.

Meanwhile, in the old continent, the pound managed to rise by 0.1% to $1.3332 after an 0.8% gain early Monday after robust-than-expected unemployment data. 

It managed to clinch to its highest in the last two and a half years earlier in the month after steadying at $1.2177 against the dollar.

In the latest update, chief negotiator Michel Barnier noted that the post-Brexit trade deal is still likely after the extension from Sunday’s deadline.

Currently, the two parties are still deadlocked on issues concerning fishing rights and fair competition, preventing the sealing of the long-standing agreement.

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